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... and also implementing innovative inventory practices and electronic dissemination of information (JIT and EDI). How does Wal-Mart do it? Wal-Mart focuses of EDI enabled JIT purchasing mechanisms. Wal-Mart shifts the “burden” of inventory to the supplier. Inventories move very swiftly with Wal-Mart, due in part to the substantial customer base the company commands.

According to Eli Goldratt’s theory of constraints, or TOC, described in his book, “The Goal”, the “core constraint of virtually every organization it has assisted is management as a collection of parts instead of a single unit” (hoodstrong, 2002). Most managers and high-level executives in a ...

... an employee scans a product that is low inventory, that data will be automatically transferred to the store manager and suppliers, triggering a chain reaction that calls for a shipment of the product immediately. EDI and J.I.T. utilization allow for the automation of functions that previously required shear manpower.

The qualitative impact of TOC, JIT and EDI utilization at Wal-Mart is very apparent even to the layperson. Wal-Mart continues to be considered one of the most successful and largest discount retailers. Their success lies in the ability to foresee inventory needs before shortages occur. By utilizing EDI technologies, Wal-Mart has ...

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