Wal-Mart has long been an innovator. Our founder, Sam Walton, spent his life coming up with ways to better serve Customers. Mr. Sam’s culture of innovation still drives  Wal-Mart today during the most dynamic growth plan in our history.  suppliers to track merchandise to study how products sell in any store by re gion or by individual unit. They can also review inventory levels, returns and inventory adjustments. “W think sharing information with suppliers allows for better input from them about how to maximize sales and profits. We can then implement best practices and pass the savings on to Customers,” Kevin Turner , the Company’s Chief Infor mation Officer, said. Wal-Mart works with suppliers to develop PDQ displays for stores. PDQs are self-contained displays that eliminate stocking individual merchandise on a shelf or hanger. Many times merchandise can go directly from the stockroom to the floor with little more than opening a box. One example of how PDQs save time and money is our new battery display. Before PDQs, an Associate had to hang each battery pack by hand, which was labor-intensive. Now, batteries come in prepackaged disposable trays and an Associate only has to remove plastic wrap to move it onto the sales floor.  Wal-Mart also uses its computer network to directly enhance service in specialty divisions like Tire and Lube Express. Using it, Associates can quickly identify vehicle service records, and Customers can use  bar-coded cards at price scanners  in the store to see when their service is completed. Drive-thru pharmacy service is relatively new in retailing. All Neighborhood Markets built last year feature this service. “Customer convenience is the focus of our Neighborhood Markets and we see drive-thru pharmacies as yet another service we can offer Customers,” said Ed Kolodzieski, Senior Vice President of Neighborhood  Markets. Wal-Mart loves to test new ideas and has little resistance to change. We believe the surest way to predict the future is to continue to invent it and all of our Associates are encouraged to share ideas. Their thoughts and ideas have helped establish  Wal-Mart as a pacesetter in the dynamic world of retail and will continue to push us forward.  Wal-Mart believes in building a collaborative environment with our suppliers in which we work together to grow both businesses and lower retail prices for Customers. While some retailers have been reluctant to share sales or other proprietary data with suppliers, Wal-Mart has allowed suppliers this type of access since early 1991. This system evolved into a web-based product called Retail Link$^{TM}$. It allows the Company and Wal-Mart’s sophisticated distribution system has allowed the Company to easily manage over 3,100 domestic stores in all 50 states. The Company continues to make advancements in distribution and transportation and now moves over 50 million cartons of merchandise per week to stores and clubs. This allows continued improvements in inventory turnover and merchandise  in stock.  PEOPLE... - co. i = Technology and logistics are among the Company’s most innovative areas. Our computer system is the most powerful in the corporate world – only the U.S. government has a larger computer network.  Wal-Mart’s philosophy of building “people supportive” systems has given us a competitive edge that has and will be instrumental in the Company’s success. 11 HISTORY OF INNOV ATION Forward-thinking is a Wal-Mart tradition.