QSO 635 Final Project
Wal-Mart South Korea
Wal-Mart is arguably the most effective retailor maintaining dominance as a discount retailer, they preserve the best sales per square foot, along with exceptional inventory turns and operating profit side by side to others in their same business class. The reason for this? Supply chain optimization, with the goal of providing customers with what they wanted, when they wanted, with everyday low prices. This goal in mind, Wal-Mart focused on evolving an innovative supply chain strategy to maintain a competitive edge and lead in the market leadership spot. Wal-Mart stocks merchandise manufactured in seventy plus countries, manages more than eleven thousand stores in twenty-seven countries, while handling an estimated inventory amount of thirty-two billion (Lu, 2014). Wal-Mart utilizes crucial data, through Vendor Managed Inventory (VMI), where manufactures are accountable for managing their merchandise in the retail stores. This technology is called “Retail Link” distributing the vendors real-time data permitting inventory to be gauged by universal product code (UPC) on hand values, gross margin, turns and in-stock percentages (Petersen, 2013).