Page 34 - DMGT510_SERVICES_MARKETING

Unit 2: Service Marketing Environment

Because the system is Internet-based, more of Wal-Mart’s international suppliers Notes

can use it.
It can deliver information more quickly, because data transmission is no longer

limited to the speed of dial-up modems.
Software can be updated on the Web instantly.

Connectivity between the stores, the centralized database, and the distribution centres

is more reliable.
To complement the supplier-focused Retail Link, Wal-Mart introduced Pipeline, a company-
wide intranet. Pipeline delivers company news, policies, procedures, and other relevant
information to Wal-Mart employees. It also provides a complete, up-to-date telephone
directory of the entire company organized by name, location and function. Pipeline is a
much more efficient way of locating phone numbers both within and outside the company:
it eliminates the cost of directory-assistance calls, as well as the need to distribute telephone
books to all Wal-Mart locations. Employees can also use Pipeline to sign up for insurance,
review company policies and check out benefits information, all online.
Results

The solutions, that Cisco offered – Internet applications for supply-chain management
and a companywide intranet – helped Wal-Mart to:
Satisfy customers by providing them with products they wanted at low prices

Work with the company’s buyers to manage store inventory, including forecasting,

planning, producing and shipping
Lower its inventory costs

Communicate better with its many vendors and suppliers

Improve internal efficiencies and employee self-service functions

Wal-Mart’s Pipeline intranet offers many additional benefits:
It serves as a vital resource for internal information, delivering company news,

policies and procedures to more than 1 million Wal-Mart employees.
It provides employees with crucial industry information and access to a company-

wide phone directory.
It helps keep human resources information current and allows employees to easily

access their benefits data, sign up for insurance and update their records.
Legal
The latest reports indicate that Wal-Mart is fighting 38 different state and federal lawsuits
filed by hourly workers in 30 states, accusing the company of systematically forcing them
to work long hours off the clock. Two years ago, Wal-Mart settled a similar suit in Colorado
reportedly for $ 50 million. Most lawsuits are waiting to be certified as class actions so that
thousands of workers with similar claims can be represented together. According to the
New York Times, June 25, 2002, 23 states are awaiting rulings for class action status, two
states were denied class status but are appealing, and three states have been granted class
action status.
In addition, there are about 150 different lawsuits filed across the United States.

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