In this first part the author talk about the problems and solutions that Wal-Mart made to be the best retailer seller in the USA and latter in theworld, as the text said they didn’t be innovative or futurist they only tried to survived in the competitive world of retailers at the beginning.
They saw the opportunity to buy all the productsdirectly to the producers but this means another problem, you have to move the products from the producers to the stores and this could involve inventory problems but Wal-Mart became with the solutionthat all the producers should distribute the products in the warehouses and then Wal-Mart classify them and send them to the stores in packages with certain specifications of the products.
Theyalso became with more solutions to be more efficient, one is the part that all the hauls are connected to see if they can pass after the delivery for some product with the producer and reduced the costfrom that product and another is that every time a customer pick some product and pay it the information travel around the system to inform inventory, warehouse and the producer to say you have toproduce a new product of this and deliver in to my warehouse, and this system helps Wal-Mart with the inventory and this save is 5 to 10 percent lower than the other companies.
Other thing thatWal-Mart introduced is the RFID to be more efficient in the scanning of the products because you only have to pass the product through certain point and is registered not as the code bar that should bescanned one per one.
Another thing that Wal-Mart is doing is the part of predict what is going to buy the client an example is the hurricane and what products are sold in those areas, so when theweather guy of Wal-Mart says that some region is going to affront an hurricane the warehouse send more products of those which are going to be consumed, example beer, pop tarts and non electric toys....