Walmart Shares Inventory Data, Demands Improvement
Walmart shared what was previously its private "On Shelf Customer Availability" data at the Supplier Growth Forum it held this week in Bentonville, Reuters reported.
The retailer hopes sharing the data, which was previously only accessible internally, will help it improve in-store product availability while streamlining operations.
To that end, the retailer also is raising the bar for suppliers for the second time in less than a year, according to the report.
Beginning in April, large partners will have to deliver orders on time 85% of the time or face a fine of 3% of the cost of the goods. That's a stricter requirement than the 75% accuracy Walmart demanded in August of last year — but still short of the retailer's ultimate 95% goal for the "On-Time, In-Full" effort.
Path to Purchase Institute (P2PI)
For smaller suppliers, the delivery threshold will move up from 33% to 50%.
"We have reduced inventory in stores in order to have the right amount of stock and have made significant progress in the past few years," chief merchandising officer Steve Bratspies told Reuters. "We want to focus on improving that even more."
Walmart estimates the changes will add $1 billion in revenue.