by winston » Sun Sep 06, 2015 7:07 am
not vested
Top Tech Innovator of 2016: Not Who You Think
It has been said by people smarter than I am that Wal-Mart leads in innovation.
The reason is: Wal-Mart does the math.
Open a new store every 11 days. Add a 15% markup to every item, large or small, sell and reorder it 12 times a year—that adds up to double the profit you get from a 25% markup on items you sell and reorder 4 times a year. Oh, and then insist on 90-day payment terms.
And make your suppliers kill for your business. The secret behind Wal-Mart’s simple math is astounding technological innovation that orders, takes delivery, distributes, prices, tracks and reorders a jar of peanut butter or a lawn mower millions of times a day.
If there were a Nobel Prize for innovation, Sam Walton would have gotten one for his distribution system, right behind Henry Ford for his assembly line.
Walton’s simple math is in the ruthless service of one ideal: a cheaper price for the customer. As a result of this focus, Wal-Mart has now become the largest company in the U.S. in terms of sales.
Indeed, it is said that Wal-Mart’s use of logistics to drive down costs has done more than the Fed ever did to tame inflation!
Source: Young's Intelligence Report
It's all about "how much you made when you were right" & "how little you lost when you were wrong"