Organizational Behaviour

Wal-Mart is the power house it is today because of its readiness to share information with its suppliers. As the store chain saw the benefits of sharing data with suppliers, they moved the information online on its Retail Link Web site. Rena Granofsky, a senior partner at J.C. Williams Group Ltd., a Toronto-based retail consulting firms says that Wal-Mart approached its suppliers as if they were partners and not adversaries, and by implementing such a collaborative planning, forecasting and replenishment program, they have began a just-in-time inventory program that reduced carrying costs for both the retailer and its supplier. Therefore there is a lot less excess inventory in the supply chain because of this system. This type of efficiency is a key in maintaining low price leadership amount retailers as well as allowing for far lower cost margins due to the supply chain. The company's cost of goods is estimated 5% to 10%

supplies are not there, customers lose faith in their supplier and look elsewhere for the merchandise. Perhaps the biggest problem K-mart has is its ability to keep stock on the shelves. K-mart in 2001 was able to keep its goods fully stocked on shelves