Wal-Mart Erp

After reading the case study from session 2, I can infer that Wal-Mart thru a Business Process Reengineering and the use of technology (ERP) software, has transformed their supply chain partner relationship into a mutual trust trading one, which include the trading of goods, information sharing, and have integrated their internal process. This has lead to very efficient supply chain channels that has increased revenues and customer satisfaction. The digital economy arrived at Wal-Mart with excellent results and mutual benefits between Wal-Mart and channel partner P&G.

Even though it is not mentioned in the case explicitly, it is a given that BRP took place before they implemented their Continue Replenishment Process (CRP) at Wal-Mart. As Session 2 explains, BPR can be defined as “Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements of critical contemporary measures of performance”. I believe that one of the fruits of the BRP process that lead to implementing CRP at Wal-Mart was the sharing of information between P&G and Wal-Mart. This alone has being responsible for increase performance in relation to financial returns, service level, and inventory replenishment times.

The benefits of this mutual trust relationship between P&G and Wal-Mart are many. With the use of Information Technology, they have being able to link each other which has drive volume and cost down. This link has also given these two companies a better understanding of their customer needs. Last but not least and a as mentioned on the Harvard Business School Case HBS Case #9-195-126 accessed thru the internet, “Wal-Mart and P&G have created a common language and an avenue for increase sales thru the use of information technology”. I am sure that KMART has to be very sorry that they did not implement this process fully when they have the chance.