What information systems and at what levels might walmart be using these systems for such a huge success in retail industry
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Walmart, the billion dollar retail giant, has grown significantly over the past five decades, incorporating numerous different types of information systems into their daily operations. The company is well recognized for their innovation when it comes to utilizing the latest technologies and information systems to maximize their profitability. Information systems structures and processes play a critical role in Walmart’s success and today they are bringing that innovative spirit to the market as they move toward full implementation of Radio Frequency Identification (RFID).
This technology allows for Walmart’s operations to function efficiently and effectively as they are capable of sending and receiving real time data to the networks. By doing so they are able to communicate the information to the retailer and the product manufactures making it possible for Walmart to remain competitive in the retail industry by properly controlling its inventories.
One of the keys to this success was the implementation of Retail Link, a supply-chain management system. This system, unique when initially implemented in the mid-1980s, allowed Walmart’s suppliers to directly access the inventory levels and sales information of their products at any of Walmart’s more than ten thousand stores. Using Retail Link, suppliers can analyze how well their products are selling at one or more Walmart stores, with a range of reporting options. Further, Walmart requires the suppliers to use Retail Link to manage their own inventory levels. If a supplier feels that their products are selling out too quickly, they can use Retail Link to petition Walmart to raise the levels of inventory for their products. This has essentially allowed Walmart to “hire” thousands of product managers, all of whom have a vested interest in the products they are managing. This revolutionary approach to managing inventory has allowed Walmart to continue to drive prices down and respond to market forces quickly.
Today, Walmart continues to innovate with information technology. Using its tremendous market presence, any technology that Walmart requires its suppliers to implement immediately becomes a business standard.
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What information systems and at what levels might walmart be using these systems for such a...
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