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System Evaluation: Walmart

Autor:   •  July 18, 2014  •  Case Study  •  856 Words (4 Pages)  •  1,097 Views

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The company Walmart has incorporated the use of different information systems into their everyday business processes; such as, Business Intelligence Systems, Decision Support Systems, Transactional Processing Systems, and Management Information Systems. They have “…the largest information technology infrastructure of any private company in the world” (2014 Brisk Education). A Management Information System gives them needed information to manage efficiently and effectively. The Business Intelligence System uses methodologies, processes, and technologies to turn their raw data into information that is useful to them. A Decision Support System analyzes their data to enable them to make wiser decisions. Then there is the Transactional Processing System, and it collects and stores the organization’s data about transactions made and occasionally controls decisions made as part of the transaction.

There are a few Management Information System applications that Walmart uses; such as, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, and Knowledge Management System. “Over the past ten years, Walmart has become the world’s largest and arguably most powerful retailer with the highest sales per square foot, inventory turnover, and operating profit of any discount retailer” (2014, University of San Francisco). In order for Walmart to create cost formats that enable low prices everyday they had to “…make the way the company replenishes inventory the centerpiece of its strategy, which relied on a logistic technique known as cross docking” (2012, Traub, Todd). Walmart has been able to continually save money by implementing this strategy, which in turn allows them to keep their prices reasonable for consumers. In behalf to their adequate combination of suppliers, warehousing, manufacturing, and distribution to stores they have taken a market leadership role. How has Walmart been able to achieve such a competitive edge? It is through their advancing Supply Chain Management strategies.

The Universal Product Code barcode (Walmart had the first company wide use of them) transformed the way they tracked their merchandise at the point of sale. When barcodes are used alone they do not make the use for inventory trackers; however, they are the catalyst for making inventory tracking much easier and practically flawless. This system enabled Walmart to get a better understanding of how much of an item they have, where it is located, and price and supplier information on a specific item. In turn they developed an effective and efficient stock control system. In 2004 Walmart began the use of Radio Frequency Identification

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