Topic > Information Technology - 760

Information is a key component to developing and maintaining an effective and profitable supply chain. The old saying “bad information equals bad information” has led to the end of profitability. In its information system, Wal-mart has been at the forefront of what a successful information system strategy looks like and how it can transform a company from good to great. Information Management System The Wal-mart store network (POS) uses an information system software called Retail Link. Retail Link is an interconnection network that allows companies and its suppliers to collaborate effectively regardless of borders and borders. The system's design allows suppliers to manage their inventory at Wal-mart with real-time data without having to rely on other companies or data warehouses to obtain this information. POS is integrated into every aspect of the supply chain. The company uses a unique barcode system, which fits seamlessly into its network. The strategy for their IMS is to have a centralized system that uses common platforms across its vendors. Competitive Advantage The competitive advantage Wal-mart gains centers on its information. Information that can be viewed as a product and Wal-Mart as a manufacturer, the supply chain can work better among suppliers when suppliers are able to target products consumers want rather than just filling shelves, thus reducing inventory. Companies are able to take this information and strategically improve their operating procedure, streamline production, and anticipate location needs to ensure they are competitive and cost-effective. Another advantage of Wal-mart is the ability to change its supply chain from a… middle of paper… satisfied customers with empty shelves. Ultimately, the customer wants the product. They don't care how it got there, but from the company's perspective, it's the driving force behind the operation. References Chopra, S., & Meindl, P. (2012). Supply Chain Management: Strategy, Planning, and Operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.Lundberg, A. (2002, July 01). Walmart: It's inside the largest company in the world. Retrieved from http://www.cio.com/article/31174/Wal_Mart_IT_Inside_the_World_s_Biggest_CompanyThe Economist. (2010, February 25). Information is transforming traditional businesses. Retrieved from http://www.economist.com/node/15557465Traub, T. (2012, July 2). Wal-mart has used technology to become a supply chain leader. Retrieved from http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader