Monday, June 20, 2005

Team Post#2: Technical viewpoint

Finding some information about logistics, I found out how Walmart is developed in logistics strategies. For me, as an engineer, the most interesting one is technical solution. From controlling inventory and transportation with satellite from 1987, to lately being about to apply RFID to murchandise. To mention about RFID, as Sheila mentioned at her presentation, RFID could be used at studying customer behavior and market segmentation. Besides that, the technology provides faster, more-accurate information on inventory, which speeds store stocking.

Wal-mart's catchphrase-low price has been possible not only from underpaid labors(which is pointed out as a problem), but also from innovative investment for saving warehouse cost, quick transportation, and maintaining stock.

Here is a study of Wal-mart's chain management. It shows how do they use IT solution for logistics and inventory. To summarize it,
△ Distribution: Barcode with hand-held computer enable employees connect realtime database and keep inventory level. They also help workers find goods from the shelf and make accurate packaging of right goods, to right place.
△ Logistics: Calculate exact time that takes from distribution centers to retail stores. Avoid trucks arriving stores at the same time, and cross-docking to save time and cost of warehouse.
△ Inventory management: Satellite shows every flows of stores and distribution centers. POS helps keep stock levels and track items.

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