Walmart 2001 Annual Report Download - page 13

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Wal-Mart has long been an
innovator. Our founder, Sam Walton,
spent his life coming up with ways to
better serve Customers. Mr. Sam’s
culture of innovation still drives
Wal-Mart today during the most
dynamic growth plan in our history.
Technology and logistics are among
the Company’s most innovative
areas. Our computer system is the
most powerful in the corporate
world – only the U.S. government
has a larger computer network.
Wal-Mart’s philosophy of building
“people supportive” systems has
given us a competitive edge that has
and will be instrumental in the
Company’s success.
Wal-Mart believes in building a
collaborative environment with our
suppliers in which we work together
to grow both businesses and lower
retail prices for Customers. While
some retailers have been reluctant to
share sales or other proprietary data
with suppliers, Wal-Mart has allowed
suppliers this type of access since
early 1991. This system evolved into
a web-based product called Retail
LinkTM. It allows the Company and
suppliers to track merchandise to
study how products sell in any store
by region or by individual unit. They
can also review inventory levels,
returns and inventory adjustments.
“We think sharing information with
suppliers allows for better input
from them about how to maximize
sales and profits. We can then
implement best practices and pass
the savings on to Customers,” Kevin
Turner, the Company’s Chief
Information Officer, said.
Wal-Mart also uses its computer
network to directly enhance service
in specialty divisions like Tire and
Lube Express. Using it, Associates
can quickly identify vehicle service
records, and Customers can use
bar-coded cards at price scanners
in the store to see when their service
is completed.
Wal-Mart’s sophisticated distribution
system has allowed the Company to
easily manage over 3,100 domestic
stores in all 50 states. The Company
continues to make advancements in
distribution and transportation and
now moves over 50 million cartons of
merchandise per
week to stores
and clubs. This
allows continued
improvements in
inventory
turnover and
merchandise
in stock.
Wal-Mart works with suppliers to
develop PDQ displays for stores.
PDQs are self-contained displays that
eliminate stocking individual
merchandise on a shelf or hanger.
Many times merchandise can go
directly from the stockroom to the
floor with little more than opening a
box. One example of how PDQs save
time and money is our new battery
display. Before PDQs, an Associate
had to hang each battery pack by
hand, which was labor-intensive.
Now, batteries come in prepackaged
disposable trays and an Associate
only has to remove plastic wrap to
move it onto the sales floor.
Drive-thru pharmacy service is
relatively new in retailing. All
Neighborhood Markets built last
year feature this service. “Customer
convenience is the focus of our
Neighborhood Markets and we see
drive-thru pharmacies as yet another
service we can offer Customers,”
said Ed Kolodzieski, Senior Vice
President of Neighborhood
Markets.
Wal-Mart loves to test new ideas and
has little resistance to change. We
believe the surest way to predict
the future is to continue to
invent it and all of our
Associates are encouraged to
share ideas. Their thoughts and
ideas have helped establish
Wal-Mart as a pacesetter in the
dynamic world of retail and will
continue to push us forward.
A HISTORY OF
INNOVATION
Forward-thinking is a Wal-Mart tradition.