Walmart was founded in 1962 and by 1990’s grew into the biggest retailer in the United States. Many business organizations such as Walmart invest heavily in information systems to achieve the following strategic business objectives: operational excellence; new products, services, and business models; customer and supplier intimacy; improved decision-making, competitive advantage; and survival. Successful attainment of these objectives aids company in implementing corporate strategies and achieving its goals.
Operational excellence is one of the major aspects that companies strive to achieve in order to be successful. This includes efficiency of operations and higher levels of productivity and profitability. Walmart is able to operate and produce in a more effective way through the use of information systems and keen business practices.
In 2010, Walmart realized 408 billion in sales because of its operational efficiency, which mostly results from the company’s utilization of Retail Link system, the industry’s leading data warehouse. Company is able to achieve such high sales through optimization of the existing relationship with suppliers and providing them with access to the Retail Link system, which is able to follow and store supplies’ movement from suppliers to warehouse, to store and then to customer. The system is providing just-in-time process of inventory control by automatically generating and sending an email to the supplier as soon as their item is sold. In this way, Walmart saves on inventory storage and at the same time achieves instant response from the suppliers whenever inventory is needed.
Walmart’s business model shows efficient delivery and retailing practices which were achieved mostly through the use of information system and technology. Company’s distribution technology, which includes warehouse and satellite networks, assists in minimizing