chpt6_wal-mart_and_mattel presentation
TRANSCRIPT
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Wal-Mart and Mattel:Supply Chain Management
Best Practices
Chapter 6 ± Case 5
Page 216
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Team Members
Elisabeth Cates
Yvonne Hildebrand
Jesse Jani
s Mary Napier
Nina Wolf
Er ic Young
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Walmart
www.walmart.com
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Jessi Janis 4
CEO ± John B. Menzer
Executive Vice President and
President and Chief Executive
Officer, Wal-Mart International
Division since 1999
1995 ± 1999 Executive VicePresident and Chief Financial
Officer for Wal-Mart Stores,
Inc.
1999 CFO Excellence Award
from CFO Magazine Prior to joining Wal-Mart, he
was President of Ben Franklin
Retail Stores, Inc
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Jessi Janis 5
History - Founder
Sam Walton in 1962
On this picture in 1984 he
does the hula at high noon
on Wall Street, makinggood on promise to
associates after company
achieves pre-tax profit of
8 percent in 1983.
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Jessi Janis 6
History ± some important dates
1962: Company founded with opening of first Wal-Mart in Rogers,Ark.
1967: Wal-Mart's 24 stores total $12.6 million in sales.
1970: Wal-Mart opens first distribution center and home office inBentonville, Ark.
1977: Wal-Mart makes first acquisition, 16 Mohr-Value stores inMichigan and Illinois.
1978: Hutcheson Shoe Company acquired
1981: Wal-Mart makes its next acquisition with 92 Kuhn's Big K stores.
1983: U.S. Woolco Stores acquired.
1990: Wal-Mart becomes nation's No. 1 retailer.1990McLaneCompany of Temple, Texas acquired.
1997: Wal-Mart replaces Woolworth on the Dow Jones IndustrialAverage.
2003: Wal-Mart named by FOR TUNE magazine as the most admiredcompany in America.
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Jessi Janis 7
Product / Services
wide variety of general merchandise
36 departments including family apparel, health & beauty
aids, household needs, electronics, toys, fabrics & crafts,
lawn & garden, jewelry and shoes Pharmacy Department, Tire & Lube Express, garden
center, snack bar or restaurant, Vision Center and One-
Hour Photo Processing
Alaska Bush Shopper: ³If you're in Alaska and far from aWal-Mart store, order items and have them shipped to you
through our Alaska Bush Department.´
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Stock Split History
In 1970, Wal-Mart offered 300,000 shares of its common stock to the public at a
price of $16.50 per share. Since that time, it has had eleven (11) two for one (2/1)
stock splits. On a purchase of 100 shares at $16.50 per share on ist first offering,
the number of shares has grown as follows:
2-for-1
Shares Cost per Share
MarketPrice On
Split Date
Record
DistributedStock Splits Date
On the Offering 100 16.50
May 1971 200 Aug 25 $47.00 05.19.71 11.06.71
March 1972 400 4.125 47.50 03.22.72 05.04.72
Aug 75 800 2.0625 23.00 08.19.75 08.22.75
Nov 80 1600 1.03125 50.00 11.25.80 12.16.80
June 1982 3200 0.515625 49.875 06.21.82 09.07.82
June 1983 6400 0.257813 81.625 06.20.83 08.07.83
Sep 85 12,8 0.128906 49.75 03.09.85 04.10.85
June 1987 25,6 0.064453 66.625 06.19.87 10.07.87
June 1990 51,2 0.032227 62.50 06.15.90 06.07.90
February 1993 102,4 0.016113 63.625 02.02.93 02.25.93
March 1999 204,8 0.008057 89.75 03.19.99 04.19.99
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Nina Wolf 9
Stock development
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Nina Wolf 10
Economic Impact for Year Ending Jan.
31, 2002 (USA)
WAL-MAR T Stores:1,636
Supercenters: 1,093
Neighborhood Markets: 31
Samµs Clubs: 502 Distribution Centers: 106
Associates employed in U.S.: 1,043,970
Community involvement: $196 million
Total amount spent with U.S. suppliers: $107 billion
Totoal federal, state and local taxes paid: $1.2 billion
Sales taxes collected and remitted: $8.5 billion
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Nina Wolf 11
Net Sales 2003 (in millions):
$ 244,524
Sales in millions
0
50,000
100,000
150,000
200,000
250,000
300,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Sales
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Mattel
www.mattel.com
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Er ic Young 13
Robert A. Eckert, Mattel's chairman
and chief executive officer
Robert A. Eckert is chairman of the board and chief executiveofficer of Mattel, Inc., theworldwide leader in the design,manufacture and marketing of
toys with approximately $5billion in annual sales.
Eckert joined Mattel in May2000 from Kraft Foods, Inc., thelargest U.S.-based packagedfood company in the world.
He received a Bachelor of Science degree in businessadministration from theUniversity of Arizona in 1976and an M.B.A. in marketing andfinance from NorthwesternUniversity in 1977.
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Er ic Young 14
1945: Mattel is foundet by Ruth and Elliot Handler and Harold ÄMatt³
Matson
1959: First Barbie
1960: Mattel becomes apublic owned company 1974: Mattels enters into in a Consent Decree with the Securities and
Exchange Comission
1986: Mattel acquires Hong-Kong based ARCO industries
1986: Joint Venture with Bandai
1988: Purchase of Corolle S.A. (France)
1989: Acquisition of Corgi Toys Ltd.
1992: Acquisition of International Games Inc.
1994: Acquisistion of Kransco and J.W. Spear & Sons
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Mary Napier 15
Products/ Partners
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Mary Napier 16
Net Sales in thousands
6
8
9
1998
1999
2000
2001
2002
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Summary
Case 5
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Mary Napier 1
Summary
Mattel as asupplier of Wal-Mart
Supply Chain Management
Benchmark company Used cutting edge technology to
build IT inf rastructure that includesall aspects of the chain
First to use Radio FrequencyIdentification (RFID)
Implemented a collaborative
planning, f orecasting, and replenishment (CPFR) program,beginning a Just-In-TimeInventory Program
Shar ing of ideas and data is key tothe just-in-time practices that arein place within Wal-Mart
Data shar ing f rom a retailers on a
global basis allows suppliers toreduce their inventory costs,resulting in a lower ing of overall costs
Efficiency in supply chain is keyf or low-pr ice leadership, resultingin f ar lower margins f or suppliers
and
retailers
Wal-Mart¶s system can work well f or all businesses and has beenstudied in-depth
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uestion 1
Do you agree that Wal-Mart is ³the best
supply chain operator of all time´? Why or why not? in the workplace?
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Yvonne Hildebrand 20
Question 1
Wal-Mart is one of the ³best supply chain
operators at the moment´
Using a supply chain management system that is
progressively against its competitors and theydon¶t even stop evolving.
Pushing the limits of supply chain management,
searching for and supporting better technology
that promises to make its IT infrastructure more
efficient.
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Yvonne Hildebrand 21
Question 1
Wal-Mart uses radio frequency identification(RFID) microchips that replace bar codes andsecurity tags with a combination technology that
costs less money. Wal-Mart shares its data with its suppliers.
By implementing a collaborative planning,forecasting, and replenishment system (CPRF),
Wal-Mart began a just-in-time delivery programthat reduced costs for both the retailer and itssuppliers.
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Yvonne Hildebrand 22
Question 1
The system is still not perfected.
The system still is too expensive for low-
budget products. Signals can¶t be send over a long distance.
Metal impedes the funk signals, so Wal-
Mart must still improve the system.
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uestion 2
What has Mattel learned from Wal-Mart?
How well are they applying it to their business?
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Elizabeth Cates 24
Mattel¶s knowledge gained from
Wal-MartOptimization of the supply chain for Wal-
mart by utilizing data gained from Wal-
mart¶s inventory databasesMaintaining a efficient supply chain so that
there less excess inventory
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Elizabeth Cates 25
Applications
Utilize the sales data on a daily basis to tailor tothe needs of supply and demand
Pinpoint what product is selling and where so
Mattel can accommodate to the manufacturingneeds
In doing so, both Wal-Mart and Mattel aresuccessful in the way that they both are working
simultaneously to fulfill the needs of retailcustomers
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uestion 3
What can other businesses learn from the experiences
of Wal-Mart and Mattel that could improve their
supply chain performance? Use an example to
illustrate your answer.
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Nina Wolf 27
uestion 3
Important to save time and reduce costs
Example:Hospital
Usually small margins
Surgical instruments and products listed in a database,which is connected to their supplier
Everything will be recorded in the database
Advantage Knowledge who has used what
Knowledge what every department need Reduce stock
Receive only products, that they really need
Supplier can optimize its production/stock
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uestions?
Thanks f or your attention!