Wal~Mart Supercenters Around the World

1
WalMart Supercenters Around the World Down the
Street

• United States of America
• Mexico
• Brazil
• Argentina
• China
• Korea
• Germany
• England
• Canada
• Japan

2
Year 2004

• 2004 - 32 Warehouses
• 1530 Supercenters
• 70 Neighborhood Markets
• ONE BILLION DOLLARS.PLUS in domestic Produce
  Sales

3
WalMart Distribution Network

• 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

4
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

5
WalMart 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

6
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

7
WalMart Produce Plan

• EDLCEDLP
• Variety - Quality - Value
• Regionally Right! Right Here! Right Now!
• Price and Item
• Location..Location..Location
• Exceed the customers expectations
• ONE STOP shopping

8
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

9
Walmart 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

10
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

11
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

12
Quality Standards

• U.S. 1 or better - must meet Wal-Mart specs
• Premium Quality - PLU/UPC - right size and pack
• Uniform packs and sizes (RPCs and DRCs)
• 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

13
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?