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Wal~Mart Supercenters Around the World & Down the Street. United States of America Mexico Brazil Argentina China Korea Germany England Canada Japan . Year 2004. 2004 - 32 Warehouses 1530 Supercenters 70 Neighborhood Markets
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Wal~Mart Supercenters Around the World & Down the Street • United States of America • Mexico • Brazil • Argentina • China • Korea • Germany • England • Canada • Japan
Year 2004 • 2004 - 32 Warehouses 1530 Supercenters 70 Neighborhood Markets • ONE BILLION DOLLARS….PLUSin domestic Produce Sales $$$$
DC 6042 Pauls Valley OK DC 6047 Bedford PA DC6055 Monroe GA DC 6056 Terrell TX DC 6057 Hammond LA DC 6059 Olney IL DC 6062 Shelbyville TN DC 6064 Cleburne TX DC 6065 Harrisonville MO DC 6071 WinterHaven FL DC 6072 New Albany MS DC 6073 Pageland SC DC 6074 Garrett IN DC 6077 Moberly MO DC 6082 Clarksville AR DC 6083 Temple TX DC 6084 Los Lumas NM DC 6085 Tomah WI DC 6090 Corrinne UT DC 6091 Henderson NC DC 6095 Opelika AL DC 6096 Johnstown NY DC 6097 London KY DC 6099 MacClenny FL DC 7010 New Caney TX DC 7012 Washington Crt House OH DC 7013 Casa Grande AZ DC 7016 Gordonsville VA DC 7017 Wintersville OH DC 7018 North Platte NE DC 7019 Brundridge AL DC 7021 Grandview WA Wal~Mart Distribution Network
Wal-Mart Produce Team • Vice President of Perishables - Bruce Peterson • Director of Produce - Ron McCormick • Merchadise Managers Michael Agostini, Steve Tursi & Laura Phillips • Regional Teamleaders - 1 for Northeastern, 1 for the Southeast, 1 for the Northwest, 1 for Southwestern region • Regional Buyers - 16 Buyers for 32 D.C.’s • Replenishment Managers - 1 Per Produce Category-Fruit,Veg,POE,SFVA
Wal~Mart Quality Control Team • Senior Perishable Quality Control Manager - Gary Campisi • Senior Quality Control Manager - 1 for North East, 1 for South East, 1 for North West, 1 for 1 South West • Quality Control Manager -1 in each DC • Quality Control Assistant Manager - 1 in each DC • Quality Control Inspector - 3 to 5 in each DC
Wal-Mart Impact on Industry ? • Contracting - EDLP program requires consistent supplies and cost, lays ground work for strong working relationship • Category Management - involve growers • Standards - increased quality standards, UPC/PLU • Innovation - always testing new concepts • Technology - access to systems, share data
Wal~Mart Produce Plan • EDLC=EDLP • Variety - Quality - Value • Regionally Right! Right Here! Right Now! • Price and Item • Location…..Location…..Location • Exceed the customers expectations • ONE STOP shopping
On the Horizon • Reusable Plastic Containers and Display Ready Containers are the packaging we use on the majority of produce packed for us. • Improved packaging & need to track product will lead to more packaged produce • Temperature sensitive labels will provide greater food safety • Value added produce will account for more of our $’s • Meal solutions including produce will become a major influence on customers selections • Branded produce will become more important in consumer trust • At home meal preparation will increase, but not “from scratch” cooking • How to recipes will drive purchases
Wal~mart Replenishment • Contract driven • National alliances-direct replenishment • Co-managed suppliers-access to systems • Regional items integrated into national plan • Regional items managed through National alliances/3rd Party agreements/Direct contracts • Regional Buyer directs focus of national suppliers with quality regional growers • Marketing and special events through Regional Buyers
Local / Regional Replenishment • Warehouse direct • Regionally significant items direct to DC • Benefits-reduced freight through back haul abilities-fresher product-marketing • Store Direct • DSD deliveries on local items, store works directly with grower • Contact Regional Buyer Richard Hite in DC #6047 Bedford PA 814-624-5242
Vendor Agreements • 2 Types - warehouse direct & store direct • Liability insurance local under 5 stores 1,000,000 min., over 5 stores 2,000,000 min. • Warehouse 2,000,000 min. to 5,000,0000 • Local-regional buyer directed-approved items only, with local store support • Quality standards-must meet company standards
Quality Standards • U.S. #1 or better - must meet Wal-Mart specs • Premium Quality - PLU/UPC - right size and pack • Uniform packs and sizes (RPC’s and DRC’s) • Cold chain compliance • Sell by Dates • Facility inspections - Wal-Mart QA Program • HACCP reviews • QC Team inspects to USDA guidelines • Inspection reports with digital images
Regionally Right • Access to Local Items • Virginia Apples • Virginia Peanuts • Virginia Potatoes • Virginia Watermelons • What other items will we be able to be marketed in our Supercenters?