Wal- Mart's Smart System Essay

Wal- Mart’s: SMART Inventory System. Wal-Mart uses the SMART inventory system which is basically a tracking system that keeps track of all of Wal-Mart’s inventory as well as it automatically reorder products that the store is either low or empty on. The SMART system is though the Telxon which is a 900 MHz wireless handheld terminal equipped with barcode scanners. When the barcode is scanned the number of that item will show up instantly as well as a short description of the products.

The advantages of the SMART system is that it has to be huge because products that Wal-Mart do not carry will still scan and give out the relevant information so that it is easier for people to return products. The SMART system is linked to the cash registers as well as inventory is automatically update as products are sold. Hand counts are updated as well as some products automatically updated. The main disadvantage of the SMART system is that everything has to be coded with barcodes.

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Which can lead to additional cost but the main key to an effective barcode system is to get as close as possible to the barcode data source. I will show you a 4- year Inventory Data on some products that are inventory. The products are from Sam’s Choice products and they are; Grapette, Orangette, cookies, and frozen meals this is how the SMART system has helped these products to stay in stock for the customers.

Product: Sam’s Choice| Year 1| Year 2| Year 3| Year 4| Grapette| $1. 5 Million| $3. 5 Million| $5. 5 Million| $6 Million| Orangette| $1 Million| $1. 5 Million| $3 Million| $3. 3 Million| Cookies| $2 Million| $4. 5 Million| $7 Million| $9 Million| Frozen Meals| $1. 7 Million| $2. 5 Million| $4. 9 Million| $8. 5 Million| I feel that if there were no barcodes we would be time consuming as well as overstock on the shelves at all of the stores.


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