Walmart Toy Truck

This scale model of a Freightliner tractor trailer represents the importance of logistics to Walmart. Sam Walton founded Walmart in Rogers, Arkansas in 1962, and put great emphasis on lowering costs. To free themselves of middlemen, Walmart built distribution centers and operated their own fleet of trucks. Using barcodes, GPS, and networked computers, the company learned what customers wanted, where, and when. Walmart sought to take manufacturer’s deliveries at distribution centers (not warehouses) and immediately ship goods to stores and into the customer’s hands. As Jay Fitzsimmons, senior VP and Walmart Treasurer explained "The misconception is that we're in the retail business," rather, "we're in the distribution business."