Department Store Marketing Comparison

1. I provoke elect to discuss and compargon the segment monetary fund industry. I spend a penny elect this industry beca engagement I live in S bug pop outhern California where the merchandise sector is a major part of communication channel. Shopping m in every(prenominal)s ar common lie with to the fore everywhere. I puzzle seen and stupefyd all the differences among class and status. With a widely variety of demographics in Southern California, in that location atomic number 18 a act of depots and stores to choose from. Department stores range from discount w arhouses a intimately deal(prenominal) as Wal-Mart, mid-range stores much(prenominal) as JC Penney, and uplifted-end stores alike(p) Nordstrom.I am going to discuss the department store industry specifically for Wal-Mart, JC Penny, and Nordstrom. Coming from a middle-class family, I make believe experienced shops at all ends of the department store spectrum. When it comes to the amount of departme nt stores located throughout the fall in States, businesses atomic number 18 fixed accordingly. High-end stores are rigid in wealthy areas where as low-end stores are send outd in a suitable region. The amounts of department stores, specifically for apiece status, are generally admit as easy. 2. GeographicDemographicPsychographicBenefits SoughtJC PenneyJC Penneys are located in nearly major shop malls in a variety of communities. JC Penney has everywhere 1, ascorbic acid locations close to the join StatesJC Penney tends to sharpen on the female demographic. More specifically mformer(a)s and middle-age womenTries to sell woodland items at a low cost. Their bran- refreshed slogan is fair and fledge pricing. They try to stress that their damages are fair at market quantifys. JC Penney is coitus customers that they buns benefit from their low prices. Dont go to Nordstrom where everything is high-priced or Wal-Mart where the lineament is low Wal-MartWal-Marts are much located in low-income areas.Wal-Mart has over 7,000 locations in 15 countries. Wal-Mart bespeaks peck of all ages to shop at their stores. They declare childrens, womens, and mens costume. Usually, families shop at Wal-Mart. The average one-year income for a Wal-Mart shopper is $35,000-$45,000. Many minorities, as wellhead as white overnice are what guide up the ethnicity of shoppers. Wal-Marts main goal is to come through a wide variety of discount priced items for their customers. Their slogans down included unceasingly low prices. Al ways. and Save silver. Live better. Rock bottom pricing and price jib guarantees are the norm. Wal-Mart is here consumers go for the absolute lowest prices. If a price isnt as low as a nonher location, Wal-Mart leave total it. NordstromNordstrom stores are more less common than Wal-Mart and JC Penney stores. They are tail endd in areas where the fraternity k instantlys there are enough individuals that want high end items. Nordstrom caters to the professional who is look for higher end habiliment that is make of woodland materials. Nordstrom emphasizes quality and customer emolument. They pride themselves on religious contributeing the better customer service of any seller in America. Nordstrom spells quality items at a decent price.Customers founding fathert go to Nordstrom for rock-bottom pricing. They go for personal selling and upscale items. These tercet companies ca-ca very assorted approaches to retail. Wal-Mart is the one-s go along shop that slew go to for the lowest prices. JC Penney offers quality point of intersections at a low price. They commonly have equal styles as places like Nordstrom and with lesser-kn throw brands. Nordstrom carries high-end results and they try on customer service and quality. They each take up their own segment of the retail business. 3. Marketing Mix The Four Ps ProductThe mathematical product is seen as satisfying what a consumer quests.I t is a tangible commodity or intangible service. Intangible services are industries such as tourism. Tangible products are cars, razors, etc. bellThe amount a customer pays for the product. price determines a confederations profit and has an impact on market strategy. Marketers must be aware of the perceived abide by of a product when setting prices. PromotionThis represents the method actings of communication that a marketer uses to provide information to the highest degree their products. Promotion consists of advert, public relations, etc. PlaceProviding the product at a place that is convenient for consumers. Place is the distri howeverion case.JC Penney Product Like its devil competitors, JC Penney offers a variety of tangible goods for bargain. JC Penney caters to its customers with higher end products at an affordable price. It is similar to Nordstroms in the types of goods offered. It differs from Wal-Mart because it has less variety. JC Penney offers clothing, bed and bath products, collection plate items, clothing accessories, and patio furniture. Clothing is the main area of production for JC Penney and accounts for more than 50% of glaring trades. bell JC Penney has lately decided to move to deuce-ace kinds of prices day-by-day, monthly redundants, and clearances.They came to this strategy through a variety of studies. First, using past sales data, the bon ton looked at consumers actual purchasing behavior, and came up with what it hurt ordinary and uncoiled pricing, which means shoppers so-and-so expect inflict prices in stores at all times. To reach this conclusion, research showed 72% of JC Penneys revenue came from selling items priced at least(prenominal) 50% off. Thus, in the example cited in most recent unexampledsworthiness stories about the Fair and Square strategy, a tee shirt that had retailed for US$14 but typically sold after markdowns at US$6, would now be priced at a US$7 every day.Part two of Fair a nd Square means monthly deals, and in the T-shirt example, the crop would now be marked US$6. The final piece of Fair and Square is called shell price, which happens on the offshoot and third Fridays of the month. Said T-shirt would now be marked $4, to clear out seasonal worker modify and down in new-sprung(prenominal)found merchandise. Basically, JC Penney focuses on sale items. They use sales to realityipulate prices. A sale is really what price the marketer decides to sell an item for to continue making a profit. These sales are base upon how well certain items sell and their perceived market values. Promotion JC Penney focuses its sayments around the tetrad seasons and its holidays. For example, Thanksgiving, Christmas, Easter, etc are when JC Penney promotes its items through telecasting and scar advertisements. JC Penney is likewise making a push towards smart advertising. Their promotions now appear in digital magazines, web come outs, mobile phone apps, etc. Place JC Penney has more than 1,100 locations across the United States. Many of these locations are at man-sized shopping malls where hatful go to buy dress. at that place is easy access to JC Penneys product.In giveition to the stores, most of JC Penneys clothing open fire be purchased from the official website. This gives customers two ways to purchase items on sale at JCP. Wal- Mart Product Wal-Mart markets itself as a store where one can walk in and literally purchase anything they need. They offer clothes, sporting goods, food, jewelry, electronics, patio furniture, toys, home improvement, music and movies, simple machine parts, etc. The idea is for Wal-Mart to be a one-stop shop for anything a family needs. Price Wal-Marts motto is unceasingly low prices. They aim to sell their products at a lower price than nearly every competitor.They usually declension lower quality versions of items at the cheapest price and they even offer a price-match guarantee. If a nonher st ore is selling the same item for cheaper than Wal-Mart says they will match it. A new part of this guarantee is that customers do not have to have the information on hand. They merely need to ask for a price match and the associates should know through anterior research. Wal-Mart as well does not focus as much on sales but rather on everyday low prices. Promotion Wal-Mart television advertisements focus on their price match guarantees and everyday low prices.A new Wal-Mart ad hunt bears the slogan Low Prices. Every Day. On Everything and features flipperr 30-second commercials, including ads featuring an Easter egg hunt and a customer asking for a price match. The changes are bringing masking local food favorites and subject field brands in household basics and general merchandise like consumer electronics. most changes are tailored to local markets. In Phoenix, for example, shoppers will find puddle supplies and lawn and garden items year-round. Place Wal-Mart has 8,500 st ores in 55 countries. It is the most recognizable one-stop shop in the world.Wal-Mart is present in many another(prenominal) places around the United States that do not have other major retail outlets. For many communities, Wal-Mart is the place to go to find everything one needs to live. Nordstrom Product Nordstrom is a rotund department store that focuses on upscale items. They carry items from mostly lavishness clothing companies such as Hugo Boss, Chanel, etc. Initially a garment retailer, the company today alike sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings. Price Nordstroms customers care less about price and more about quality.The goods offered are not a terminategain. They are meant for those in need of upscale items. Luxury products are defined in part by their price. Nordstrom is pursuit to appeal to those people that want department store prices but not necessarily large sales and discounts. Promotion Nordstroms does not use a low price tag to attract customers instead they use quality. enchantment it is pricier to shop for clothes and home decor at Nordstroms most graphic designer labels prove to be of better quality, uniqueness, and durability. Many of Nordstroms television ad campaigns focus on re-defining one.Their selling strategy focuses on how people can approve their lives with quality clothing and accessories. Place Nordstrom has 225 stores operating in 29 states. Nordstrom is much less ubiquitous than Wal-Mart and JC Penney. They are located mostly in shopping malls but the company makes sure to build their stores only where there are enough people that can afford luxury items. 4. JC Penney The JC Penney website has a clean and easy layout. The top of the site has a search bar and then a number of tabs representing each department available to patronize through.The website as well as uses wring-coding. Anything representing the values and sales for May is written in purple. there are products on the front summon with prices listed underneath. These prices are each in a purple box to show that the sale price is for May. There is one large picture that dominates the home page. It has the letters MOM with its mothers may written above it. As I said before, JC Penney focuses its advertising on holidays. The site is user-friendly. Everything is easy to read and it is not too cluttered. The site has areas to find a store and a best prices section.On the upper sort out there are four logos a cell phone, envelope, facebook, and twitter. JC Penney is keeping up with the times by including other types of websites and embrace genial media. Wal-Mart The Wal-Mart website is more cluttered than the JC Penney one. On the top there are 5 but dozens that read Value of the day, local ad, store finder, registry, and gift cards. To the right of this is an area to log into a Wal-Mart account and track your orders. On the leave of the page is a column sho wing the major departments available on walmart. com. Under this are two more columns showing savings as well as new products.In the middle of the page there are color advertisements very similar to what one would find in print circulation ads from the mail. There are specials all over the front page. Under the advertisements there are two rows titled more great ways to preserve and shop Wal-Mart best sellers. The Wal-Mart website is cluttered and it is difficult to find what youre looking for. There is an overload of information. Nordstrom Nordstrom has the most simple website of the three. The top has tabs for Women, Men, Juniors, and Kids as well as all the brands offered at the store. There is in any case a sale tab. afterward hovering over each tab a pop-up appears. Under the of tabs is a large advertisement called the perfect 10. It is a list of Nordstroms 10 warm-weather essentials. Nordstroms seasonal advertising is apparent. They are in the midst of promoting the Summer form of clothing. Under the advertisements are links to connect the Nordstrom facebook and twitter pages. There is also a handy store and event locator at the top of the page. The website follows a mostly black and white theme with the only color being on the clothing pictured. This makes the clothing pop on the page and offers good contrast. . JC Penney has positioned itself as a mid to high-end retailer with excellent sale prices. Wal-Mart is positioned as the one-stop shop with the lowest prices of any retailed. Nordstrom is the high-end retailer that pushes the quality of its clothing over cheap prices. Survey 5 Questions, 20 people complyed. Where are you most likely to shop JC Penney, Wal-Mart, Nordstrom JCP 11 people, Wal-Mart 3 people, Nordstrom 6 people Which has the best prices JC Penney, Wal-Mart, Nordstrom JCP 5 people, Wal-Mart 13 people, Nordstrom 2 people Which has the best quality JC Penney, Wal-Mart, Nordstrom JCP 6 people, Wal-Mart 1 person, Nordstrom 13 people Which has the best products JC Penney, Wal-Mart, Nordstrom JCP 8 people, Wal-Mart 3 people, Nordstrom 9 people Which is the best at advertising JC Penney, Wal-Mart, Nordstrom JCP 9 people, Wal-Mart 7 people, Nordstrom 4 people In the college student demographic, most people are likely to shop at JC Penney. I conclude that this is because JC Penney positions itself as offering stylish clothing at good prices. Wal-Mart is seen as the bargain bin and Nordstrom is too expensive for most students.It is evidenced through this survey that each company has a very differentiated place in the consumers minds. Wal-mart is seen as the price leader, Nordstroms as quality, and JC Penney as good quality at a low price. The consumer impressions of each company match how each of the competitors have positioned themselves in the marketplace. 6. SWOT AnalysisWal-Mart StrengthsWal-Marts strengths are centered on its always low prices motto. Wal-Mart positions itself as having the lowest prices of any c ompetitor. They even guarantee to match any competitors price.The survey shows that people are acquiring this message and know that Wal-Mart is the cheapest. WeaknessesWal-Mart has a problem when it comes to the perception of the quality of their products. masses see Wal-Mart as cheap but low quality. Good in the short-run but not long-lasting. OpportunitiesTo improve performance, Wal-Mart could create an advertising campaign to show how they have low prices AND quality products. They could possible create departments with higher-end goods. ThreatsCompetitors such as Costco and other one-stop shows are external elements that could threaten Wal-Mart.Other companies can also attack the quality of products and the methods Wal-Mart uses to get these prices. 7. Wal-Mart has new CRM strategies in place for the new decade. Wal-Mart president Lee Scott Jr. has addressed how he is trying to make Wal-Mart the company of the future. They are seeking to gain new clients while nonoperational keeping old ones. Wal-Marts CRM strategy stresses corporate debt instrument and its five factors ethical consumerism, risk attention, transparency, accountability, and responsibility. Scott had detailed his companys approach to the social component of retail.Executives, he said, mate regularly with a panel of 50 young consumers, many of whom have cut their personal spending at restaurants, movies, or shopping in general and say they feel good about the money theyre saving. That sentiment, Scott noted, will likely remain with this generation of consumers even after the scrimping bounces back, a factor that retailers have to be cognizant of. Despite the consumer gustatory sensation for multiple touch points, each shopper quench expects recognition as a single individual, which means retailers must create a seamless multichannel experience.A raise number of consumers are using two or more impart to research, evaluate, purchase, and return products, Janiak said, a phenomenon th at has been made possible by the Internet. According to Forrester Research, by 2012, 49 percent of United States retail sales will be online or cross-channel sales. Even today, the importance of the online channel is significant, Janiak said, citing a recent Deloitte survey of retail executives that indicated every dollar of merchandise sold online influences as much as $3 in the store. Wal-Mart is pull to covering the Internet aspect of retail in the future.They know that mobile phones, tablets, and laptops are the consumer devices of the future. In addition, Walmart. com, the online partitioning of Wal-Mart, has leveraged its consumer tracking tools to work out even more precisely what the value of each of its customers is. They (Walmart. com) know when they put Valentines Day flowers on sale how much it costs to send that message, what percentage of customers end up on that site because of that message, how much money they will spend, and what is the likelihood of that custome r coming back and buying other things, says Wharton marketing professor David Reibstein.They dont simply look at one-time purchases, but at all the purchases afterwards, and use that information to calculate the value of spending advertising dollars. They have that down to a science for more or less all of their advertising. Wal-Mart is adept at tracking purchasing patterns and catering their advertising to specific consumers. Nordstrom is also adept at customer relationship management. They stress that they are the leaders in customer service excellence. They state the company with the grea attempt reputation for customer service in the United States continues to be Nordstrom.One of Nordstroms leaders states What that takes is courage, dedication, and the fact that customer service isnt a strategy, but rather a way of life. A couple of years agone a company called me to speak to the organization because that year they were focusing on customer service. That begs the question What were you emphasizing last year and what are you going to emphasize next year? At Nordstrom, its a realization that theyre not in the apparel business, shoe business, or cosmetic business, theyre in the customer business. JC Penney and its new CEO are also at the forefront of CRM.He says that a great impact may come from information systems the customer rarely sees, such as customer relationship management (CRM) software. Apple reshaped the retail landscape painting and combined technology with customer know-how to change the customer experience, Fader notes. Now, every retailer wants to do that. Using technology and social media to enhance the shopping experience is all well and good, but there is lower hanging reaping by using technology to better target buyers. Nordstrom and JC Penney department stores also have cards such as a Nordstrom card that offer sales and deals to those that shop at Nordstrom prevalently.These cards are the companys way of rewarding those that are fre quent purchasers that offer a lifespan value to the company. The retailers also offer credit cards to purchase their items that can be paid off with payments instead of all at once. 8. The societal marketing concept holds that a company should make marketing decisions ground on what the customer wants. It is closely linked with corporate social responsibility and sustainable farmment. Companies of the future are focusing on environmental concerns because this is what people care about.Hybrid cars and alternative fuels are hot topics in the modern semipolitical arena and corporations must address this. Wal-Mart has begun a food-labeling program that will add great for you to many of its products on the fruit counters. Wal-Mart is trying to stress that its fruits do not include harmful pesticides or fertilizers. Wal-Mart has had environmental problems in the past. They recently had to pay a $1 million dollar fine and develop and environmental management plans because they violated storm water requirements under the showy Water Act. Wal-Mart has created a plan to cut 2. million metric tons of CO2 emissions by 2013 by making stores more efficient. They have also said that Wal-Mart now reuses or recycles more than 80 percent of the lavishness produced in its United States operations. Since 2005, the company has reduced greenhouse gases by 12 percent and increased its trucks fuel efficiency by 65%. It is clear that Wal-Mart is making a concerted effort to be more environmentally responsible. In terms of bounty, the Wal-Mart foundation has worked for global womens economic empowerment, hurt relief, education, military support, and disaster relief.They also have many scholarship programs. JC Penney has committed to reduce brawniness consumption by 20 percent per gross square foot by 2014 by increasing energy-efficiency improvements and implementing conservation practices. In 2009, the retailer prevented about 80 million pounds of greenhouse gas emissions re ferable to its new energy-efficiency measures. The retailer has invested millions of dollars to install advanced metering technology, lighting retrofits, and high-efficiency HVAC systems in its stores. JC Penney was the first retailer to earn the Energy lead Award for sustained energy management.JC Penney has been a member of the ENERGY dealer program since 1999 and was recognized as an ENERGY STAR Partner of the Year in 2007 and 2008. In addition, when the new ENERGY STAR efficiency benchmark for retail stores was introduced in October 2007, four JC Penney stores in Washington State became the first buildings to earn the Energy Star label for energy efficiency. Currently, 52 JC Penney stores, as well as the home office in Plano, Texas, have dependent for the ENERGY STAR construction Label. The retailer has set a goal to achieve ENERGY STAR certification for at least 200 stores across the country.Last year, JC Penney began using social media for charitable giving. They released s everal new digital initiatives. They also announced that since 1999, they have raised more than $100 million in scholarships and grants through its charity JC Penney Afterschool. Nordstrom is also committed to sustaining the environment. They are working on resource conservation, cycle and waste management, packaging innovations, and organic cotton development. They have used 100% recycled bags and boxes since 2008. Nordstrom has perhaps the more radical approach to charity.They have opened a store in New York City at which all the gelt have been committed to charity. Other than this, Nordstrom has the least about charity out of the three companies. Each of these three companies has been committed to environmental change. They have exhibit a commitment to reducing waste and pollution. JC Penney is the most environmentally informed of the three and was awarded an Energy Star. In terms of charity, Wal-Mart has the most charitable donations of the three. base on these findings all of the companies are focused on the societal marketing concept. 9. With the economic collapse of 2008, the retail sector was one of the hardest hit. until now, JC Penney, Nordstrom, and Wal-Mart have find remarkably. All three companies recently produced increased profit margins. Wal-Mart is 2 on the Fortune 500 list and isnt in any predictable danger. I would say that of the three, Nordstrom is most in danger of hitting spunk times. Although profits rose, Nordstrom caters to high-end retailers. If there is another economic collapse then Nordstrom may face danger. One retail giant that wasnt so golden was Mervyns.At its peak Mervyns had nearly 200 stores in 10 states. However in 2008, Mervyns began the adjoin of liquidating its entire inventory and all stores were closed. Their excreting shows the fragile nature of the retail business. If I could choose any product in this industry to close down I might have to go with Wal-Mart. Wal-Mart is known for exploiting poor nations for resources and cheap labor. Additionally, employees get very fewer benefits and most are on minimum wage. I stand for they are too focused on low prices at the expense of quality and fair business practices.They also have a monopoly on the U. S. retail sector. In 2010 they had over $300 billion in sales. The next highest was Kroger at nearly $80 billion. The difference between Wal-Mart and its competitors is staggering. 10. Personal selling involves personal interaction in which a seller persuades the customers to buy products or services. Wal-Mart has over 57,000 providers that use personal selling to get their products on Wal-Mart shelves. Wal-Mart has an online step-by-step process to become a supplier to the company.If Wal-Mart is interested in a supplier then they will try to meet the leaders of the bestow business to see if they are capable. Suppliers must then sign a slue with Wal-Mart. The contract, commonly known as the vendor agreement, outlines the mechanics of ho w the supplier and retailer will work together. The agreement generally addresses sales and delivery timeframe, arbitration, and close rights, and liability. As a rule, Wal-Mart uses a non-negotiable boilerplate. Charley Moore, CEO and founder of legal service RocketLawyer. om, says this means potential suppliers can study similar contracts online before confrontation with the buyer. Wal-Mart generally starts out smaller suppliers in a local market, delivering goods to up to 50 stores, as a test run. If the supplier provides a high-selling product and proves reliable, it might be considered for national distribution. Bruce Zutler, CEO and co-founder of MCI Products Group, a New York-based company that specializes in new product development and overseas sourcing, recommends small suppliers think of the test-run as the time to prove they are capable. If you have a good product and you strengthen their sales, then the buyer will stay with you, says Zutler. The test run is the time wh en suppliers must sell Wal-Mart on carrying a product. After all these efforts then the product may be picked up across the country and customers can find them at everyday low prices around the nation. 11. If I were the CEO of Nordstrom, I would get my best customers to order more by selectively having sales on items that were popular in the past. I would bring these items back in different styles and colors and place a seasonal sale on the items.This would encourage old customers to reacquire items that they previously liked, but that have acquired wear and tear over the years. I would also offer deals to frequent customers such as Spend $200 and get 10% off. This usually makes people spend more than they are planning on in order to get a deal. In addition to displaying similar clothes to what people ordered, I would follow the Lands End method and offer matching accessories such as wallets, belts, shoes, watches, etc that go well with items that customers purchased.I would place these accessories close by to the clothing in the store so that people would be more likely to associate the accessories with products that they had already purchased. I would also offer incentives to frequent buyers. The more a person buys, the more special sales and opportunities they are offered. Nordstrom is one of the most successful retailers in terms of data analysis. They have updated their technology to bring SKU information much faster. The new technology also helps to analyze customer patterns and helped bring Nordstrom out it its slump. 12. The three companies have very different advertising efforts.JC Penney has released a new ad campaign called say no to the status quo. The ad campaign includes tv and outdoor ads as well as a Facebook page where visitors can scream their frustration at old types of advertisements. My favorite advertisement out of these three companies is the new JCP television ad shows people screaming at sales that ended early. They are overwhelmed a t all the different number of sales and prices. JC Penney is saying that they are simplifying their sale structures. The campaign paves the way for the companys new fair & square price structure.The ad is rough-and-ready in because it has a comedic effect and addresses a legitimate concern for customers that are overwhelmed by the number of sales at retail outlets. Wal-Mart has recently committed to spending more on television advertising. In addition, Wal-Mart added thousands of screens in its retail locations that constantly show advertisements in different areas of the store. Wal-Mart is also trying to focus more on other aspects besides prices. They are beginning to advertise well-known national brands. Nordstroms advertising focuses on the quality of their product.Nordstroms strives to meet customer satisfaction through offering an array of products. Our goal is to offer a well-edited range of products for a variety of lifestyles. . While they dont offer common, everyday need s like toiletries, groceries or cat litter they do offer more upscale products such as apparel and home decor. Nordstrom, like Walmart, offer a private labelbut without the notable discount. Nordstroms newest advertisement shows a woman opening the door to a man. The man drops his umbrella and looks at the girl in disbelief. The screen then shows the address reinvent the complement. The advertisement is saying that by wearing Nordstrom clothes, people dont even need to say anything. You can simply put you are wearing quality clothing by their reaction to see you. 13. Retailers have to deal with a variety of factors in their supply range management process. JC Penney is committed to offering merchandise and services that reflect the adept range of their customers lifestyle preferences. To help them deliver on their brand secure of offering style and quality at a smart price, they absorb relationships with minority and women-owned suppliers that help provide for the needs of it s diverse customers.They state that that sustaining a strong supplier base requires building relationships with suppliers they trust. Thats why, for more than 30 years, jcpenney has considered its Supplier Diversity program integral to business success. This program fosters relationships with qualified minority and women-owned suppliers, reflecting the diversity of associates, customers and community. Since its inception, the jcpenney Supplier Diversity Program has realized stiff growth in the purchases of merchandise, goods and services from minority and women-owned suppliers.JC Penney must deal with a variety of other things in its supply change management program. They have a US logistics operation that focuses on developing environmentally conk out packaging, utilizing alternative energy sources and conservation to reduce cost and carbon footprint, and go along expansion of recycling and reuse projects. Wal-Mart is noted for the incredible speed of their supply chain. Wal-Mar ts legendary supply chain technology has allowed them to break the three-day barricade that some economists in the eighties felt was largely unbreakable.In other words, Wal-Mart is often able to replenish items on the Wal-Mart shelf in less than three days not from the central warehouse to the shelf, but from the manufacturer to the shelf. With affectionate and reliable 2-day turn around, Wal-Mart is able to maintain lower levels of inventory and still meet customer demand. These lower inventory levels result in both a reduced floor plan with lower carrying costs and lower interest expense or a greater diversity of products on the store shelves. Wal-Mart has over 7,000 factories worldwide that supply their products.Regulating these factories is an enormous practice. In the past, Wal-Mart has come under intense scrutiny because of working conditions in their factories as well as the presence of underage workers. Wal-Mart must deal with these challenges on a regular basis. Nordst roms supply chain starts with its vendors that they buy directly from. one time the regional buyers find out what products are needed to reach the target market, they go to the showrooms and order in bulk. The vendors then ship the products to warehouses across the country.They use a system called Accenture to determine their inventory. The inventory of each store is fit(p) by Accenture, sent to each retail store, and purchased by customers. Accenture figures out which products are needed at each store. Nordstrom also uses the supply chain management software called SynQuest. SynQuest markets itself as a tool that facilitates planning, execution, and control on all orders. SynQuest uses financial optimization and real-time management. As it can be seen, Nordstrom and other companies use cutting-edge software to manage their supply chains.