Informatoin Technology

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Recommended: How walmart is competitive

Information is a key component to developing and maintaining an effective and profitable supply chain. The old saying “bad information in equal bad information out” has lead to the demise of profitability. In its information system, Wal-mart have been leading the charge for what a successful information system strategy looks like and how it can change a company from being good to great.
Information Management System
Wal-mart point of sale (POS) network use an information system software called Retail link. Retail link is an interlinking network that enables the companies and its suppliers to collaborate effectively regardless of boundaries and borders. The system design allow suppliers to manage their inventory at Wal-mart by being able to have real-time data without having to going to other companies or data warehouses to get this information. The POS is integrated into every aspect of the supply chain. The company uses a single barcode system, which feed into their network seamlessly. The strategy for their IMS is to have one centralized system that uses common platforms among its suppliers.
Competitive advantage
The competitive advantage gained by Wal-mart centers around its information. Information that can be viewed as a product and Wal-mart as the manufacturer, the supply chain can function better between the suppliers when supplier are able to target products that consumers want rather than filling just shelves therefore reducing inventory. Companies are able to take this information and strategically improve its operating procedure, streamline production and anticipate needs in the location to insure they are competitive and cost effective. Another advantage Wal-mart has is the ability to change it supply chain from a pu...

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...isfied costumers with empty shelves. Ultimately, the customer wants the product. They are not concerned how it got there but from a company’s perspective, it is the driving force from behind the operation.

References
Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.
Lundberg , A. (2002, July 01). Wal-mart: It inside the world's biggest company. Retrieved from http://www.cio.com/article/31174/Wal_Mart_IT_Inside_the_World_s_Biggest_Company
The Economist. (2010, February 25). Information is transforming traditional businesses. Retrieved from http://www.economist.com/node/15557465
Traub, T. (2012, July 2). Wal-mart used technology to become supply chain leader. Retrieved from http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader

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