Use of Information Technology in Logistical Operations of Wal-Mart
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Use of Information Technology in Logistical Operations of Wal-Mart
In line with its key objective of low consumer prices, Wal-Mart made aggressive investments in available information technology (IT) systems for the retail market earlier than its market rivals did. Notably, in the year 1969, Wal-Mart was amongst the first retailers to track their inventory with the assistance of computers (Stankevich, 2003). Subsequently, the company adopted the use of bar codes when making sales in the year 1980. The next technology that Wal-Mart utilized after the bar codes is the electronic data interchange (EDI) that improves its coordination and data exchange procedure with its suppliers. The combination of these information technology devices, and introduction of wireless scanning guns into its data processing systems have been facilitating quick monitoring of sales at every store of the company. These massive investments in information technology have been significantly supportive to the company’s logistical operations as IT allows quick reduction of inventory and boosts both its labor productivity and capital (Stankevich, 2003).
Based on Lichtenstein (2006), it is arguable that Wal-Mart is always strategic when making investments in technological devices and applications. It mainly focuses on IT applications and devices that would directly assist it in achieving low consumer prices, which is its main value proposition. For instance, Wal-Mart made an investment in Retail link program, which is a program capable of directly capturing data on sales giving real-time stock quotations to vendors. Wal-Mart utilizes the efficiency and dependability of the Retail link program to increase sales in its various stores using micro merchandising. The Program also assists Wal-Mart to monitor its stocks efficiently and eliminates the chances of under-stocking in every...