Away goes a "landmark"

[ctenidae]

The innovation in WalMart's supply chain management alone is pretty astounding. They can tell exactly how many of an item they have in any store, how many they sell, how many they need and when. Their systems are set up to match the weather- when a hurricane is forecast for Florida, they increasse supplies of beer and water, and afterwards increase supplies of cleaning products and duct tape. Based on the items you purchase, they can tell where you went in the store and even the most likely path you took, and they place items accordingly. The things they've don with SCM have been adopted by almost everyone, overall reducing those costs for consumers no matter where they shop. RFID is a WalMart initiative. GPS in trucks, scheduling software, and other things, too.

Do you like paying with a debit card when you go out? WalMart provided the major push to make that technology cheap and possible.

WalMart forces their suppliers to cut costs, mostly by improving their efficiency and cutting sytematic costs (it's easier and longer lasting than cutting labor costs), practices adopted by many manufacturers.

From a business perspective, yeah, they've done some amazing things.

 

[SkiDog]

The innovation in WalMart's supply chain management alone is pretty astounding. They can tell exactly how many of an item they have in any store, how many they sell, how many they need and when. Their systems are set up to match the weather- when a hurricane is forecast for Florida, they increasse supplies of beer and water, and afterwards increase supplies of cleaning products and duct tape. Based on the items you purchase, they can tell where you went in the store and even the most likely path you took, and they place items accordingly. The things they've don with SCM have been adopted by almost everyone, overall reducing those costs for consumers no matter where they shop. RFID is a WalMart initiative. GPS in trucks, scheduling software, and other things, too.

Do you like paying with a debit card when you go out? WalMart provided the major push to make that technology cheap and possible.

WalMart forces their suppliers to cut costs, mostly by improving their efficiency and cutting sytematic costs (it's easier and longer lasting than cutting labor costs), practices adopted by many manufacturers.

From a business perspective, yeah, they've done some amazing things.

These things are only for Walmarts benefit...if their "suppliers" don't comply with their initiatives they cannot do business with Walmart..some of these businesses cannot afford to make these "drastic" changes. Therefore they go out of business...while this may be "innovative" from Walmarts and a technology prespective its not right to "force" anyone to do anything, theres a reason for late adoption sometimes.

Its great that they have such a tight hold on supplies and what they have or dont in stock, but thats just implementation of tracking technology, not anything amazing..they just have the cash to implement..once they do...everyone that wants to be on the Walmart shelves has to comply...it doesnt seem very realistic..and why should every business have to model themselves after Walmart....someone else said it already..."GENERICA" some of these businesses simply cannot survive the "walmart" way....but does that mean they dont deserve to survive?? I dont think so...so im going to keep shopping there as long as the small businesses are around..

M

 

[ctenidae]

Shop where you want- it's a free market. Many of WalMArt's practices have been adopted by other comapnies, and many are considered to be industry "best practices". They have a tight hold on inventory because they invented the methods and adapted the technology. They didn't just implement the technology, they invented it. Not directly, maybe, but they caused it to be feasible.

Anyone that wants to be on anyone's shelves has to comply with the purchaser's requirements. As an example, my sister-in-law has a line of children's clothing (www.nano-baby.com shameless plug). She needs to outsource some of the sewing, but doesn't want to go to China, so she's having a tough time finding eastern European manufacturers that can comply with American business requirements. Nordstrom's wants particular hangers, for instance. Point is, as a supplier you always have to comply wiht teh buyer's demands.

Again, not defending WalMart, but when the goal of business is to maximize shareholder value (which it is), then WalMart stands out as an exemplary firm.

 

[Marc]

These things are only for Walmarts benefit...if their "suppliers" don't comply with their initiatives they cannot do business with Walmart..some of these businesses cannot afford to make these "drastic" changes. Therefore they go out of business...while this may be "innovative" from Walmarts and a technology prespective its not right to "force" anyone to do anything, theres a reason for late adoption sometimes.
M

If WalMart suppliers cannot adapt to meet WalMart's requirements for inventory delivery at a price on which they both agree, then they go out of business. Is that not the (mostly) free market at work?

No one's being forced to do anything. WallyWorld has the freedom to do business with whom they please.

And further more, if a supplier chooses to build a business around the transactions of one company, the management needs to realize the risks inolved with a practice like that.

Remember the old adage, "Don't put all your eggs in one basket"?

 

[JimG.]

Shop where you want- it's a free market. Many of WalMArt's practices have been adopted by other comapnies, and many are considered to be industry "best practices". They have a tight hold on inventory because they invented the methods and adapted the technology. They didn't just implement the technology, they invented it. Not directly, maybe, but they caused it to be feasible.

Anyone that wants to be on anyone's shelves has to comply with the purchaser's requirements. As an example, my sister-in-law has a line of children's clothing (www.nano-baby.com shameless plug). She needs to outsource some of the sewing, but doesn't want to go to China, so she's having a tough time finding eastern European manufacturers that can comply with American business requirements. Nordstrom's wants particular hangers, for instance. Point is, as a supplier you always have to comply wiht teh buyer's demands.

Again, not defending WalMart, but when the goal of business is to maximize shareholder value (which it is), then WalMart stands out as an exemplary firm.

Indeed if one cares about nothing but the money, Walmart stock is a great investment...if you are holding stocks already.

But I sure wouldn't buy Walmart stock because none of the money issues matters a bit in the long term view. That's because Walmart sells junk. Utter crap. And it's because of the very supply side standards you admire so much. In order for Walmart's suppliers to make money, the product quality suffers. Because that's the only part of the equation Walmart does not care about.

This consumer does not buy crap, thus I do not go to Walmart. And in time many other consumers will start to feel the same way. I know many folks who feel like I do, and with every supply side initiative Walmart comes up with to further decrease quality, more consumers join our fold.

And when enough have had it with crap, Walmart stock will tumble like a cheap house of cards.

 

[Marc]

Indeed if one cares about nothing but the money, Walmart stock is a great investment...if you are holding stocks already.

But I sure wouldn't buy Walmart stock because none of the money issues matters a bit in the long term view. That's because Walmart sells junk. Utter crap. And it's because of the very supply side standards you admire so much. In order for Walmart's suppliers to make money, the product quality suffers. Because that's the only part of the equation Walmart does not care about.

This consumer does not buy crap, thus I do not go to Walmart. And in time many other consumers will start to feel the same way. I know many folks who feel like I do, and with every supply side initiative Walmart comes up with to further decrease quality, more consumers join our fold.

And when enough have had it with crap, Walmart stock will tumble like a cheap house of cards.

Ironically, I was just thinking that now might be a good time to buy their stock. They're near a 52 week low. And have been on a 3 year bear trend. I just don't know enough about them to feel comfortable buying their stock...

 

[SkiDog]

If WalMart suppliers cannot adapt to meet WalMart's requirements for inventory delivery at a price on which they both agree, then they go out of business. Is that not the (mostly) free market at work?

No one's being forced to do anything. WallyWorld has the freedom to do business with whom they please.

And further more, if a supplier chooses to build a business around the transactions of one company, the management needs to realize the risks inolved with a practice like that.

Remember the old adage, "Don't put all your eggs in one basket"?

its hard to stay in business if you're not on their shelves is my point...they also VERY OFTEN set prices at or below the actual cost of the item for their suppliers...therefore the suppliers actually get LESS profit, if any, on same materials they once got more for because of the "free market", and being on more shelves. I dont consider what Walmart does "Free market"..do you know Levis doesnt have any north american factories anymore BECAUSE OF WALMART??? How more american can you get than Levis...they were in business long before Walmart came along..I think they knew plenty about supply chain management..they didnt need Walmart to tell them how to do it and what to charge...Walmart said..its "this or else" and they had no choice..now the walmart "brand" jeans are made by levis....they have to sacrifice QUALITY for Walmart...

man I have to stop...ill go on and on..

As for SHAREHOLDER value..I will give no arguments...but I dont want to be associated with a company that pays me bigger returns they way they do business..just me though...no harm meant..

I have said it before and i'll say it again...read http://www.amazon.com/gp/product/0971154236/104-0012610-2335109?v=glance&n=283155
then we can revisit this subject....its a VERY enlightening book...Cten....I recall you like to speak up on the environmental issues from time to time, check how "friendly" Walmart is when it comes to storing fertilizers...i know you're not "defending" them...but i'd be willing to bet one quick read of the above text and you wouldnt say anything in their benefit..just a guess though ;-)

M

 

[Marc]

I'd love to read the book, Dog, but, 1) I don't have the time, and 2) as a general rule I don't form opinions based on the writings of one man with an agenda.

 

[SkiDog]

I'd love to read the book, Dog, but, 1) I don't have the time, and 2) as a general rule I don't form opinions based on the writings of one man with an agenda.

Oh you can read many texts that have those very smae opinions, not just one text...

time...I cant help you with...

M

 

[cbcbd]

"You'll find adventure at Catkills Game Farm. Adventure is in our nature"

 

[ctenidae]

This consumer does not buy crap, thus I do not go to Walmart. And in time many other consumers will start to feel the same way. I know many folks who feel like I do, and with every supply side initiative Walmart comes up with to further decrease quality, more consumers join our fold.

And when enough have had it with crap, Walmart stock will tumble like a cheap house of cards.

Well, $315.65 billion dollars don't feel the same way you do and have said so in the past 6 months, so there's a chance you may be in the minority. WalMart's forcing lower costs, sure, but they are passing most of those savings along- their net profit margin is only 3.61%. That's lower than grocery stores, the worst performers in all of retail. What it comes down to is they provide what the consumers want at the price the consumers want it. No matter how much you may hate them, and no matter how evil you think corporations are, this is business.

I'd agree, Marc- WMT's looking pretty cheap at the moment.

 

[Marc]

Well, $315.65 billion dollars don't feel the same way you do and have said so in the past 6 months, so there's a chance you may be in the minority. WalMart's forcing lower costs, sure, but they are passing most of those savings along- their net profit margin is only 3.61%. That's lower than grocery stores, the worst performers in all of retail. What it comes down to is they provide what the consumers want at the price the consumers want it. No matter how much you may hate them, and no matter how evil you think corporations are, this is business.

I'd agree, Marc- WMT's looking pretty cheap at the moment.

Good God man, don't let that become habitual.





Or you may find yourself at the business end of a goat.

 

[JimG.]

Well, $315.65 billion dollars don't feel the same way you do and have said so in the past 6 months, so there's a chance you may be in the minority.

Fools and their money are easily parted. There are alot of fools out there.

Yes, I'm in the minority and I wouldn't have it any other way. Good taste and an appreciation for true value regardless of dollar amount are rare indeed.

Thank you.

 

[JimG.]

I'd agree, Marc- WMT's looking pretty cheap at the moment.

How else could it look?

Cheap is Walmart's middle name.

 

[ctenidae]

WalMart is suffering from their past quite a bit. It's tough for them to get the permits to build a new store, as a lot of commuinties have enacted zoning laws speciffically designed to keep them out. That's why Target has been able to grow so quickly (smaller stores, better reputation), and I think was part of the logic behind Sears buying KMart (though KMart has much heavier baggage with it). WalMart has wised up, to an extent, and their new CEO is focused on changing WalMart's image. Fortunately, consumers do require some serious proof, so WallyWorld has their work cut out for them.

 

[SkiDog]

WalMart is suffering from their past quite a bit. It's tough for them to get the permits to build a new store, as a lot of commuinties have enacted zoning laws speciffically designed to keep them out. That's why Target has been able to grow so quickly (smaller stores, better reputation), and I think was part of the logic behind Sears buying KMart (though KMart has much heavier baggage with it). WalMart has wised up, to an extent, and their new CEO is focused on changing WalMart's image. Fortunately, consumers do require some serious proof, so WallyWorld has their work cut out for them.

Target is a FAR superior store to Walmart....

M

 

[ctenidae]

Target is a FAR superior store to Walmart....

M

They've capitalized on the market that WalMart doesn't serve, and they've done well at it. They've learned from WalMart's successes and failures, and that's a good thing.

 

[SkiDog]

They've capitalized on the market that WalMart doesn't serve, and they've done well at it. They've learned from WalMart's successes and failures, and that's a good thing.

yeah...they do cater to a different shopper...mostly one who wants quality...HA

I know Walmart has done some "interesting things" with supply chain management and whatnot, but the badness shines through much more than the "greatness" imho...

thankfully some communities have caught on and are making zoning laws more difficult for the likes of Walmart. Walmart has a bad habit of abandonning stores for bigger ones then leaving those stores empty....

M

 

[ctenidae]

I know Walmart has done some "interesting things" with supply chain management and whatnot, but the badness shines through much more than the "greatness" imho...


M

Agreed. To get to the "interesting things" requires a deeper dive into what they do and how they do it than can be gotten from articles on the evils of WalMart.

 

[SkiDog]

Agreed. To get to the "interesting things" requires a deeper dive into what they do and how they do it than can be gotten from articles on the evils of WalMart.

im pretty well aware of the RFID movement they basically headed and some of their other accomplishments on stock tracking and ordering....those are great things, but unless they can be used by everyone its only for Walmarts benefit......I am however likely not as well versed in Walmarts "backround" as you seem to be...I think thats profession based...I dont look at what walmarts stock does, I look at what they do to the local community..

I know you are in no way defending them, just stating facts so...I appreciate that...

M