Wal-Mart based on operation and management of development model

[Abstract] Wal-Mart as the retail world, the aircraft carrier, with its strong supply chain management and cost management, customers, stakeholders and a series of win-win Strategy for the successful operation and management, 40 years in the United States and beyond countries and regions to obtain a rapid development, its operational management and development of the concept is worthwhile to learn from our retail business. But Wal-Mart's business development in China in the process of localization problems exposed may also evolve into the development of this super giant competitive weakness.

[Keywords:] Localization of operation and management development model
Wal-Mart Stores, Inc. by the U.S. retail legend Sam Walton founded in Arkansas in 1962. After forty years of development, it has become the world's largest private employer and the world's largest retail chain providers. Let us point from which Wal-Mart's operation and management analysis.

First, customer oriented service Strategy
1, customer-centric customer first service strategies to ensure customer satisfaction. Wal-Mart's "customer first" principle is famous, it is well known the two provisions. The first article: "customer is always right"; s two states: "If the customer is just wrong, please refer to the first!" more distinctive, Wal-Mart's customer relationship philosophy is - the customer is the employee's "boss" and "Boss."
To make the shopping process from beginning to end customers feel happy, Wal-Mart requires its employees to exceed customer service expectations; always put the customer before the goods brought to them to find, not just to the customer pointed to the, or tell where they are commodities; familiar with the advantages of your goods sector, the difference and the price level, before starting work each day to spend five minutes to familiarize yourself with new products; for greeting customers often come with special enthusiasm, let him have the feeling of being taken seriously.

2, Wal-Mart's everyday low prices persist in providing more benefits for customers. Wal-Mart through the shop to "everyday low" sales philosophy introduced to Europe, Asia, Latin America, has been widely accepted. "Everyday low prices" and Retail sales philosophy is for the overwhelming majority of consumers, that middle-income and low income class, so it is universal, has become the basic operating principle of chain industry. chains only have the scale, a significant reduction in management costs , adhere to the principle of profit can be achieved to provide customers with low prices, high quality requirements of products, won the overwhelming majority of consumers, access to sustainable development.

Second, excellent supply chain management
Wal-Mart's management has crossed the internal management and external "communication" category, but formed its own as the main chain, linking manufacturers and customers global supply chain.

Wal-Mart in the high technology and the use of electronic technology to invest a lot of money, it always is a world leader in this area. Invested four hundred million dollars Wal-Mart Hughes from the United States launched a commercial satellite network to achieve the global . Wal-Mart more than 4,000 outlets worldwide through a global network can be within an hour of each product inventory, shelves, and sales of all the inventory again, so Wal-Mart outlets, the situation does not occur out of stock .

Wal-Mart has a hundred percent complete logistics system consisting of information systems, supplier partnerships, reliable transportation and advanced automated distribution centers throughout the United States a complete logistics system. Its high efficiency of the logistics process has the following aspects: First, purchase by the buyer to the supplier of goods, placing orders through the data input → uniform suppliers of goods distribution center to distribution center → after treatment by truck to each store, display in the shop for customers through the store to buy → Computer system requirements for replenishment. so constantly cycle.

Wal-Mart in the United States has established 70 high-tech support from the logistics distribution center, distribution center in the general area of ​​approximately 10 million square meters, can supply more than 700 shops. Distribution Center operations amounted to 120 million boxes a week, each months, the amount of the goods themselves about 5,000 million U.S. dollars. all automated distribution operations, is today recognized as the most advanced distribution centers to achieve high efficiency and low cost goals for Wal-Mart's implementation of "Always low prices" to provide a reliable logistics guarantee.

Third, the excellent cost management
1, the purchase cost control tactics. This is the retail cost control a key chain, Wal-Mart by the central procurement system for unified purchase, outright purchase and settlement of fixed time, purchase directly from manufacturers in large quantities purchase, sales of large quantities strong support to achieve the maximum marketing virtuous circle.

2, the logistics cost control tactics. This is a retail chain operating costs of the important factors, Wal-Mart set up quick information feedback system and efficient logistics management system, not only greatly reduce the stock level, but also greatly accelerate cash flow speed, making the logistics expense ratio lower than their peers more than 60%, its capability to implement the logistics, business flow, information flow strengths.

3, marketing, cost control tactics. Wal-Mart 90% of the goods are purchase directly from manufacturers and has more than 35% of its own brand, to promote distribution costs down to below 3% of total sales, thus forming a an unparalleled competitive advantage. cheap high quality own brand is established, it will become the Wal-Mart customer's favorite products, and Wal-Mart stores only in these commodities to buy.

4, the advertising cost control tactics. Wal-Mart that "everyday low prices, always" is the best advertising, the consumer is the best mouth and ears of the media. Therefore, they are always large and cheap goods "in-kind advertising" , the lowest in the peer advertising costs, only the equivalent of peer-to 1 / 3; and sales are the largest 1 times higher than their peers. To the continuation of "everyday low prices, always" persistent market positioning, it is necessary with the times Progressive changes in marketing, information technology through the promotion of enterprise E.

5, lower operating costs, the implementation of "anti-loss war." Wal-Mart expressly provided, the staff at work when they go out, they need to live in a motel; and stores such as lighting, air conditioning equipment for saving energy and reducing cost considerations, but also the implementation of unified management. In order to maintain low prices, Wal-Mart will be losses to a minimum.

Of superior customer relationship management (strategic capacity management)
1, complementary symbiotic marketing company model to achieve a win-win vendor. Wal-Mart has always been that the establishment of shared interests with the supplier, in an important symbiotic relationship between the location of Wal-Mart's corporate culture important one is with the supplier to maintain a good partnership.

Wal-Mart and P & G's cooperation, called the retailer a model of cooperation with suppliers In 1987, Wal-Mart, P & G ranks as the major retailers. Previously, P & G high degree of secrecy on production costs, Wal-Mart can not predict the lowest cost; Wal-Mart of information on commodity sales have taken the attitude of secrecy, P & G can not develop plans for Wal-Mart's future needs. Since then, the two sides together to develop a long-term compliance with the contract, P & G disclosed to the Wal-Mart the cost of products to ensure a stable supply Wal-Mart, and enjoy the lowest possible prices; Wal-Mart is also the chain's sales and inventory to convey to the P & G, the two sides also discuss the use of daily exchange of information on Computer technology methods.

Wal-Mart's lead in establishing a cooperative relationship with suppliers, but from the beginning had very good results. This partnership will allow P & G more efficiently manage inventory, streamline production processes, which can reduce the cost of goods; In addition, Wal-Mart can be adjusted so that the commodity composition of each store, so low prices, wide variety, so that customers benefit.

2, and employee relations is tantamount to partners, colleagues, won the company a strong cohesion. Wal-Mart's relationship with employees is a real sense of partnership, peer relationships. Wal-Mart employees in the establishment of equal partnership, This is just the beginning of innovation. soon, Wal-Mart for every employee began to implement its "profit-sharing plan" Purchase Plan "," employee discount rule "," scholarship program "and so on. In addition to these, the staff also Enjoy some of the basic treatment, including paid vacation, holidays, grants, medical, personal and home insurance.

Under the "employee discount rule", employees, spouses and dependents employees who, in Wal-Mart stores, Wal-Mart shopping plaza and shopping at Wal-Mart stores U.S. HyperMart, many kinds of normal prices of commodities can play a 10% discount . For those who work more than one year in Wal-Mart employees, they were about Walton Foundation to provide scholarships to children of high school graduates.

Wal-Mart employees are inspired by the contribution of their own strength. They make plans to cut costs, design ingenuity of the goods on display, but also invented a flexible form of marketing.

Five Wal-Mart in China, the problems exposed by the development of
1, the parity of the low prices every day business processes in China, a number of problems. Wal-Mart with low-cost black factories, brought a series of problems and adverse effects. First, when the black factory with low-cost implementation of cooperation "Always low prices" Wal-Mart stores everywhere in the land of China, and its many surrounding boutiques, hardware stores, building materials stores, grocery stores, shoe stores, jewelry shops and department stores will be out of business, will add a lot of unemployment, leading to people's purchasing power declined, and declining purchasing power of people is Wal-Mart's "Always low prices" policy of active supporters. Meanwhile, the closing of these stores will block a lot of business sales channels, forcing many companies have to give up their own strength shop program, either Wal-Mart's control, or into a vicious circle.

Links to Free Download Center http://www.hi138.com the second paper, never to workers to buy insurance, wage arrears, tax evasion point of view, the outcast of the black tragedy of the creation of many plant persons. Wal-Mart with those partners, in fact, strong support for the production of the tragedy, while Wal-Mart with its large terminal network to promote these products in factories, but also led to difficult to maintain the normal market order.

Third, the ability of Wal-Mart's supply chain management is not yet effective use in China. As Wal-Mart with a group of black and factories, while the black level of the factory information is often low, Wal-Mart advocates the sharing of information goods features and failed to realize the actual cost of their control, there are some effects.

2, low-cost products of questionable quality risks. On the quality of the goods Wal-Mart appears to reflect the wide variety of issues, especially food, consumers reflected the special milk has expired Wal-Mart phenomenon, orange and more cakes are deteriorating phenomenon and the reaction of most consumers too hard to smell the smell of the deli; meat area is too slow, too small window, meat prices are too high; price is too high pollution, and such products are not clearly marked so that consumers can not convincing; shopping bags are not environmentally friendly, the bags reach the cooked food hygiene standards; also update the consumers that Wal-Mart slower vegetables, some vegetable quality; individual commodities can not find the mark, bar code failure.

Treatment of the staff, the survey shows that Wal-Mart stores in China will get more than 2000 yuan monthly salary of employees less, most of the staff that their impact on the family wage income, and generally expressed dissatisfaction with the low pay , expressed the hope that you can properly raise. low-wage income of the employee loyalty.

3, against the Law in China. China <<Trade Union Law "> provides a certain scale of each enterprise should establish trade unions, but Wal-Mart entered China since 1996 has been no establishment of trade unions. Until 2005, the method used in underground work, the staff at the Wal-Mart store in Quanzhou set up the first trade union, Wal-Mart finally bow to the National Federation of Trade Unions. However, due to boycott Wal-Mart, Wal-Mart trade unions play little role, in particular in the Chinese New "" Labor Contract Law "> announced the implementation of the end of 2007, Wal-Mart's purchasing center in China's four big layoffs began. Although Wal-Mart has repeatedly denied that this is against China's New" "Labor Contract Law >> implemented, but public opinion holds that the company is yet another act against the Law.

4, Wal-Mart's location Strategy and China's national conditions and consumer habits are not entirely compatible. Wal-Mart's site is usually in relatively rural areas, but because of the Chinese family car is not very popular, and public transport has not yet perfect, unless passing, far away to a point on commodity prices, Wal-Mart made a special trip to Wal-Mart purchased cheap, after all, not much.

In summary, the reason why Wal-Mart can use the short 40 years to become ranked the world's dominant retail industry is its strong supply chain management and cost management, customer first, win-win and a series of stakeholder successful operation and management Strategy, management philosophy and the specific result of strong support. But we must clearly recognize that Wal-Mart in China's development is far from its hegemony in the world to adapt to the level of Wal-Mart in China Localization in the process exposed the scale of enterprise development, stage of development incompatible with the problems and worries, Wal-Mart management and the need to attract the attention of industry peers. Wal-Mart only to the existing problems are resolved, truly in China, Japan and other Asian countries out compatible with its status of development.



[References]
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