Information System Processes in Walmart Company

Document Type:Thesis

Subject Area:Management

Document 1

It has over 700 discount stores in the United States alone. Its business is all over Europe, Africa, America, and Asia. In essence, Walmart is a very big business empire. Walmart Business Processes Walmart had always extolled low prices. Its main business strategy is selling at discount prices and supplying through a supply chain system. It operates a well-oiled process thanks to adopting good information systems early. Walmart uses IT services in all of its major business processes, including customer management, supplier management, supply chain management, inventory management, amongst others. Having good information processes fostered a good interaction and smooth running of these business processes. Overall, it changes how Walmart's business processes. However, there was better efficiency. Walmart had to deal with scalability as the business was rapidly growing. Undoubtedly, a robust information system has helped them scale higher. This article examines Walmart's information systems, their contribution to company growth. Information System Processes and Its Significance For an organization to function properly, it must have a good business strategy, organizational strategy, and information strategy. Each of these tools is very important, and they must be interlinked. That is, a business that can boast of these three strategies has a higher chance of teaching its essential goals and aims. Thus, to maintain a robust and well-linked business strategy, an information system is essential. An information system ensures adequate and well-organized communication throughout the business. Information systems have become more and more indispensable for bigger companies. As these companies scale up, they need an information system to help them manage their big sizes.

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It uses CRM technology for customer management, EDI, RFID, and distribution centers for its supply chain management. As a retailer, wholesaler, and distributor, Walmart’s information system is based on IT technologies. This technology is used to streamline each of the company's processes. Customer Relationship Management (CRM) Walmart maintained a well-oiled CRM infrastructure that focuses on what is important, that is, serving the customers better. CRM is a popular technology that takes important information from customers to know their choices and serve them better. Its value is three times higher than its nearest competitor. Supply Chain Management Another important part of Walmart's business operation is its supply chain management. When the company started operation, it had a competitive advantage due to its superior supply chain management and discount sales. However, as it grows over time, maintaining a well-oiled supply chain for goods was not easy, especially as it tends to maintain its discount sales system.

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Walmart had to find a way to eliminate redundant operations, reduce redundant costs, shorten product life cycle, reduce market time, incorporate mass customization into production, amongst other processes. The purchase, transport, and distribution costs are all reduced. Thus, Walmart maintained its supply chain strategy's effectiveness to great effect. • Inventory Management: Walmart manages inventories and tracks every transaction in every store through a robust Point of Sale system. The POS system helps them track every transaction in every store and collect valuable information about customers. They were also able to determine the amount of stock in each store. Walmart's Introduction of RFID To Replace Barcode EDI and barcode systems were pretty effective. They helped Walmart maintain better communication with suppliers. However, the retail company needs more. Walmart is an international company that serves customers all over the globe.

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Thus, they needed to control their stocks better, reduce out-of-stock goods and keep track of goods sent to each part of the world. Benefits Of Walmart's Usage of Information Systems • The Competitive Advantage: The information system used by Walmart is both unique and effective. This gives them a competitive advantage over their competitors. The company streamlines its logistics and supply chain better by using good IT strategies. This has a positive effect on the overall operation of the business. As a result of better logistics, redundant operations and redundant costs are cut. This was only possible through effective information systems. Weakness Of the Information System Used by Walmart Yes, Walmart's usage of information systems was largely successful. However, the information system is not a fit-all strategy. In fact, no IT process is a fit-all.

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Being a frontrunner, Walmart faced some problems in implementing new technologies. As a result, they lost vendors. • Cost: Introducing new technologies into the market is usually high. Walmart is a market front runner. Therefore, they prided in using new technologies to streamline their business processes. However, these new technologies may cost a fortune.

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