WalMart Management Information System

WAL-
MART Management information system

Table of Contents
Introduction.................................................................................................................................................3
MIS system in Wal-Mart.............................................................................................................................3
EDI system in Wal-Mart..............................................................................................................................4
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8

Introduction
The main aim of this paper is to outlines the MIS system and EDI system of Walmart that is one
of the biggest and leading grocery companies across the world. Supply chain management is an
important part of the each and every company to expand and flourish the activities and actions in
the international market. Here is the discussion about the EDI version and further it discusses
that how EDI version AS2 plays a significant role in Wal-Mart. AS2 is the well known and latest
version that is used by the company in today’s era. The paper explains that how the firms
maintains unique financial image in the minds of the consumers. More detail of the paper has
been stated below,
Walmart Inc. is an American multinational retail Corporation that operates and manages a chain
of hyper markets, grocery stores and discount department stores. The company’s headquarter is
situated in Bentoville, Arkanas. Walmart was incorporated by Sam Walton in 1962. It has been
studied that the company has more than 11,718 stores and clubs in 28 countries. It has owned
operations in various countries such as Chile, Canada, Brazil and Argentina. Walmart is one of
the biggest companies in the world measured by revenue (Walmart, 2018). It has been noted that
Walmart continues to be a global leader in corporate philanthropy, employment opportunities
and sustainability. The company is a part of the unwavering commitment to generating various
types of opportunities and bringing value to the consumers and communities as well. It has been
analyzed that the company is the biggest onsite green power generators in the United States
(Walmart, 2018).
MIS system in Wal-Mart
A management information system is a computerized database of financial information
programmed and organized in such a way that it produces regular reports on operations and
activities for every level of management in the company. MIS system is used by the company to
satisfy the needs and requirements of the consumers in the international market. MIS system
helps in increasing and improving the revenue and profitability of the firm as it also enhances the
quality of decision making (Williams, 2016). MIS also facilitates the organizational performance
and helps in boosting teamwork. Besides this, it has shall be noted that MIS is the systematic use

of people and technology to manage and control the flow of information in an effective way.
This system is implemented for the point of sale data collection, internal communication and
inventory control within the organization (Chouinard and Stanley, 2013). MIS is the system that
provides the actual performance report of the firm that utilize in middle management which
created based on the data from TPS. MIS based EDI and RFID technology is used by the
company within the organization. It has been analyzed that Walmart stores continues to flourish
and expand its RFID (radio frequency technology) to provide various facilities to the consumers
in the marketplace (Desmarais, Paul & Simmonds, 2013). Through effective and dynamic RFID,
the company has been able to provide values to the consumers as it also saves the money of the
customers. By using this strategy, the organization has been able to be a global leader in the
marketplace. Also, it will help in striving with competitors in the international market. It will
also make easy the marketing which is used by Walmart (Courtemanch and Carden, 2011).
RFID technology allows for Walmart’s operations to function effectively and successfully as
they are enough capable of getting and sending real time data to the networks. Wal-Mart is
utilizing the information with the help of RFID technology. Along with this, EDI system is also
initiated by the firm in today’s competitive world.
(Source: Wal-Mart, 2018)
EDI system in Wal-Mart
It has been noted that there are various version of EDI communication available but the version
used by Walmart and its suppliers is AS2. AS 2 is a application about how to transport data

securely and reliably over the internet. Security is attained by using and initiating digital
certificates and encryption. One of version of EDI is AS2 that is effective and unique to fulfill
the needs and demands of the customers. AS2 is a specification about how to transport and
exchange data, not how to validate the content of data. AS2 helps Wal-Mart to deliver and
receive data in an effective and secure way. It is an internet protocol based on the solution that
uses standard HTTP communications to translate the data. The cost of the EDI version is
determined by the company’s desires and by individual software suppliers. Some of the software
packages are set with EDI translation software (Lawaspect, 2018).
It has been noted that electronic data exchange is the transfer of the data from one computer
system to another by standardized the message formatting without any support of human
interventions. EDI allows the multiple companies in the different countries to share the
documents electronically (Dekker, Fleischmann, Inderfurth & van Wassenhove, 2013). In other
words, electronic data exchange is a standard and process for sharing the significant business
documents. These documents can be shared between retailers and suppliers. Two components
are included in EDI such as communication and translation. The business data is automatically
changed into a standardized EDI format during the translation process. Once the business
document and data is translated into a standardized EDI format it is communicated and
electronically sent to the recipient. There are ample of methods of EDI communications that are
used by the many companies. One of the significant and latest method that used by Wal-Mart
and their suppliers is AS2. It has been analyzed that the company serves customers and suppliers
nearly about 260 million time per weak across the world. With the help of EDI, the company has
been able to provide cost effective solutions to the customers and suppliers as well. EDI system
minimizes the data entry, and order processing with increasing the productivity of the firm. Wal-
Mart is a biggest retailer that also plays a significant role as a distributor in the global market. It
has been noted that the company uses replenishment, collaborative planning forecasting and
Electronic data interexchange as the technology and tool to integrate the participants and
employees to exchange information, and facts within the organization. By exchanging
information and CRP (continuous replenishment process), the company not only reach the
supply chain network effectively but also eliminating the cost of inventory based on the effective
supply chain management (Walmart, 2018).

(Source: Walmart, 2018)
Furthermore, it has been analyzed that the company believes that its trade and business partners
must all be using EDI since it reduces various types of errors, mistakes and human interactions
and further it also eliminates and reduces the cost of physical file storage, transaction and
management time. EDI system is the considered the “eyes” of Wal-Mart because it provide
enormous benefits to the firm (Dekker, Fleischmann, Inderfurth & van Wassenhove, 2013). The
system provides scanners through which the employees read the UPC bar codes on the container
and label. All of this data can be fed into a database where it can be understood by the local
managers and leaders of Wal-Mart. This data can be used and accessed by the head office
computers for making effective decisions at the national level. Apart from Wal-Mart initiating
their EDI systems, an ample of this data can be used by the customers and suppliers who want
sufficient inventories of the products and services at different Wal-Mart stores. There are various
ways through the EDI system provides important information and data to the customers as well
as suppliers in the marketplace. Some of the ways that have been used by Wal-Mart are
discussed below (Amaravadi. and Lessard, 2017).
 The inventory of their unique product and service can be measured and identified for
each individual product.
 Along with this, sales can be calculated by the location to provide support to the suppliers
for conducting marketing research.

 Product flow is detailed and accessible.
Wal-Mart has created a major market in the international business industry. It has a great and
effective knowledge management program that has facilitated it to acquire its competitive
benefits at ineffective and unstable economic conditions (Rainer, Cegielski, Splettstoesser-
Hogeterp and Sanchez-Rodriguez, 2013). It has been analyzed that EDI system is much fastest
and quicker to provide various types of information to the consumers in the global market. By
using EDI software, the employees are able to handle the consumer’s grievances and further also
maintain company’s EDI compliance. The form of integration can be attained with the help of
EDI compliant software packages. With the help of EDI system, the company has been able to
build and develop relationship with its suppliers and customers in the global market. Walmart
creates a more effective and efficient logistics and supply chain network with the help of EDI
software (Courtemanche and Carden, 2011). By using this software, the company is able to focus
and identify its strategic business operations and activities. The organization has invested a huge
amount in communication and EDI system in order to track the merchandize inventories and
sales in the stores across the world (Porter & Stockdale, 2016). In today’s era, technology plays a
significant role in each and every company to grow and survive its business activities and
operations in the international market (Myerson, 2012). With the help of EDI (electronic data
interexchange), the organization can maintain unique and dynamic supply chain management
within the organization. Financial payment, purchase order invoices and advanced shipment
notification are few examples of the electronic transmission of the EDI. It is noted EDI not be
implemented to automate the poor business (Desmarais, Paul & Simmonds, 2013). It shall be
noted that Wal-Mart integrates the EDI operations with ERP system to eliminate the manual data
entry, errors and mistakes. Aside this, it reduces and avert the order processing time (Amaravadi
and Lessard, 2017). It has been noted that EDI system improves the individual performance and
productivity. It also improves and enhances the decision quality and it also reduces the problems
of the firm. Along with this, it improves and enhances the interpersonal communication. EDI
system also improves and boosts the managerial skills, talents and potential. Apart from this,
cloud based infrastructure renders full access to any required EDI document from any site and
location with the help of internet. A catalog management system is one of the significant benefits
that helps in order processing and automates the advanced and unique ship notice. It has been
noted that DCS (distributed control system) customer essential to meet the company’s needs,

requirements and expectations. Firstly, vendors initiate the secure internet data exchange
confirming to the EDI INT AS 2 protocol to exchange unsecure and ineffective communication
methods and tools (Pearlson, Saunders & Galletta, 2016). It shall be noted that DCS analyzed
and measured whether how well the various solutions and techniques would assimilate with
existing EDI solutions and suggested two alternatives for two different and unique scenarios.
One solution for the company’s vendor with no other specific foreseeable AS2 trading partners
and further solution for vendors and suppliers that expect other trading partners to request AS2
processing in the near future. After the consumers selected and chosen a solution, DCS system is
implemented and examined the process, plans and procedures and train the workers for
identifying and analyzing the new process and procedure (Jin, Drozdenko and DeLoughy, 2013).
This system also helps in gaining rivalries benefits in the global market at the marketplace. There
are various strategies are used by the company to implement the EDI system within the
organization. There are various steps to sending and getting EDI documents that includes the
preparation of the documentations, interexchange the documents into the EDI format (Jin,
Drozdenko, and DeLoughy, 2013). This system is created and designed to customer transact
clearance and effectively related to the information electronically implementing the electronic
data interexchange.
Conclusion
From the above mentioned analysis, it can be concluded that Wal-Mart uses unique and dynamic
EDI system in the marketplace to attract and retain maximum number of the customers. The
paper also explains the DCS system and RFID technology of the company. The EDI system
makes easy the productivity and efficiency of the workers as well as organization. Various
advantages’ of the EDI system have been explained in the task. Also, it will help in supply chain
management and logistics management to accomplish the long term goals and objectives.

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