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1. Leadership in the 21st Century Carolyn Walton Vice President April 18, 2007.

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Presentation on theme: "1. Leadership in the 21st Century Carolyn Walton Vice President April 18, 2007."— Presentation transcript:

1 1. Leadership in the 21st Century Carolyn Walton Vice President April 18, 2007

2 Mexico 889 Units Puerto Rico 54 Units Central America 413 Units Argentina 13 Units Brazil 302 Units Japan 392 Units UK 335 Units US 4,022 Units China 73 Units 6,782 Units 1.8 Million Associates Wal-Mart’s Global Presence Canada 289 Units As of February 7, 2007

3 3. WAL  MART ® 350 300 250 200 150 100 50 500 $Billions 7000 6000 5000 4000 3000 2000 1000 0 $1.2 Billion January 31, 1980 $1.2 Billion January 31, 1980 Stores $345 Billion January 31, 2007 $345 Billion January 31, 2007

4 4. Doing well by doing Good PEOPLE PROFIT PLANET Stewardship: Giving Involvement Sustainability

5 5. Sustainability Goals To be supplied 100% by renewable energy Existing stores 20% more efficient in 7 years New stores 30% more efficient in 4 years Fleet 25% more efficient in 3 years, and double in 10 years

6 6. Sustainability Goals To create zero waste 25% reduction in solid waste in 3 years All private brand packaging improved in 2 years (right sized, reusable materials)

7 7. Sustainability Goals To sell products that sustain our resources & environment 20% supply base aligned in 3 years

8 8. Gallons of Water Saved ………. 478MM Gallons of Diesel Saved ……… 20.7MM Reduced # of Trucks …………….2.8MM Plastic Resin Reduction …… 129MM lbs Reduced # of out of Stocks. ……...50% Reduction in Labor Dollars …….$91MM Working with Suppliers

9 9. Globalization of the Consumer The customer … knows more and expects more Worldwide!

10 10. Supercenters China

11 11. SAM’S Club Brazil

12 12. Apparel United Kingdom

13 On an average day … We process 24,408,389 customers at the register 4,900 kilometers of register tape More than twice the distance between Tokyo and Honolulu

14 14. On an average day … We approve over 15 million credit cards, debit cards, shopping cards and checks for our Wal-Mart and SAM’S CLUBS …Each in less than ONE second !

15 15. Simple Job: Ensure products are on the shelf when customers want to buy them

16 16. Reality Reality Check …

17 17. Supply Chain Efficiency “Our philosophy has always been this simple: We are agents for our customers. And to do the best job possible, we’ve got to become the most efficient deliverer of merchandise that we can.” Sam M. Walton

18 18. Getting products to customers Innovation and precise execution are instrumental in getting to the customer the: right product, to the right place, in the right quantity, at the right time.

19 19. Wal-Mart – Replenishment Hurricane Katrina Preparing Responding Rebuilding 2,498 emergency truckloads of supplies

20 20. Wal-Mart - Replenishment Advanced predictive capabilities analyze past events and look at patterns Coverage for basic needs is “staged” in advance Flexibility is built in – enabling the power of people to decide to redirect products

21 21. What can go wrong in the supply chain?

22 22. “… I can assure you, your order is on the water…”

23 23. “It’s being loaded as we speak.”

24 24. “It just left our loading dock.”

25 25. “…we sent it by ground…”

26 26. Visibility in the Supply Chain

27 27. Business Opportunity How Are We Achieving This? Innovate (R & D) Innovate (R & D) Prove Concepts Embed in Business Embed in Business Leverage Standards Leverage Standards

28 28. Innovation: Continuing the Cycle of Change Innovating for the future: Sensor technology Wearable devices Continuing to lower the cost of technology Scale and critical mass Tags with EAS and RFID

29 29. Improving In-stock: Provides Savings for Customers Eliminating extra trips for 100,000 customers:  Saves 25,000 gallons of gas  Saves $22.8 Million for customers  Reduces greenhouse gas and eliminates 80,209 metric tons of CO2

30 30. Improving Supply Chain Efficiency: Good for Retailers At today’s prices, if we improve our fleet fuel mileage by just one mile per gallon, we can save over $52 million per year We are increasing our fleet efficiency by 25 percent over the next three years and will double it within ten years When implemented across our entire fleet by 2015, this amounts to savings of more than $310 million per year

31 31. Consistent Focus  Providing value for our customers  Working with our suppliers to deliver collaborative benefits  Sustaining the improvements with process changes … It is a journey …

32 32. Healthcare - Is the Model Sustainable? Both employers and families see cost increases

33 33. The Challenge to Change Supply Chain Management The healthcare industry has made little progress in capturing the $11 billion+ process opportunities identified 10 years ago in the “Efficient Healthcare Consumer Response” No widespread method today for efficient and safe product movement: The same bar-coded products that come to our Wal-Mart facilities are not bar-coded when sent to a hospital There is no widespread method for automation or a tracking system that ensures proper delivery of the right prescription at the right time to the right patient

34 34. Center for Innovation in Healthcare Logistics  Novel research will be conducted  Ground-breaking solutions will be developed  National focus will aim to bring change  Focus on a new healthcare delivery system that reduces costs, achieves a new level of efficiency and improves the safety and quality of care for all American consumers

35 35. Imagine a world where … You have peace of mind when you pick up your prescription that it is the right product and dose

36 36. Imagine a world where … You are confident that the fruits, vegetables, meats, dairy products, and breads – are always presented to you at their highest quality

37 37. Imagine a world where … The products you buy are always available, at the best possible price

38 38. Imagine a world where … Software, music, movies, and designer fashions can be confirmed as authentic

39 39. Imagine a world where … Patient safety with regards to your healthcare is not only the standard, your healthcare is more affordable and accessible to you

40 40. Imagine a world where … You can check out of a Wal-Mart store or a Sam’s Club in 30 seconds

41 41. Imagine a world where … You have more time with your family – making lists and waiting in line are a thing of the past

42 42. Imagine a world where … All products and their raw materials can be recycled without manually sorting, stacking and separating by color, material, and type

43 43. Imagine a world where … Your luggage arrives on time, at the right place, every time

44 44. Technology & Innovation What can you do? What can we do together? What future will we choose to create?

45 45. The Future - One of Promise

46 46. Leadership in the 21st Century Carolyn Walton Vice President April 18, 2007

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