Case Studies / Analyze, Consumer Electronics, Merchandise, Optimize

Advanced analytics solution drives growth at Walmart.

SUMMARY

Our proprietary predictive analytics technology provided the foundation for the Premium team to deliver a customized strategy and growth for a major electronics manufacturer in Walmart.

1,726
points of distribution modified
1
week from analysis to implementation
1,507
stores

Challenge

The client challenged Premium’s analytics team to manage and improve the on-hand inventory at Walmart.

What We Do
Business Intelligence
Insights
Predictive Analytics
Strategy

Execution

Over the last 20 years, Premium has developed a best-in-class predictive analytics engine exclusively for Walmart’s suppliers. The cloud-based Smartcom platform unleashes custom algorithms to mine real-time business data for areas of opportunity.

In this case, we suspected a phantom inventory issue at the store level. Phantom or ghost inventory is the number one store-level issue preventing sales in every product category, from electronics to grocery and beauty. Corrections to GRS – Walmart’s inventory management system – can generate supply chain efficiency, massive and sustainable growth, and improved customer experience.

We started by analyzing the client’s supply chain, logistics and category management data from Walmart’s RetailLink system. Based on the analysis, we engaged Premium subject matter experts to prescribe a treatment plan and revise future sell-through forecasts to reflect the recommended corrections.

 

We communicated our findings with Walmart to ensure we had a shared foundational knowledge of the issue and implemented store-item level forecast adjustments based on those findings.

The results were clear – historical data showed relatively flat sales trends. The week our changes to the forecasting policy were processed, we witnessed an immediate and exponential change in the client’s sales growth rate. The client could not attribute the growth to any other event or promotional activity.

Through the execution of this multi-prong strategy, we optimized product deliveries, right-sized product inventory across stores and decreased lost sales due to zero on hands. All of these changes generated incremental category sales that would not have been realized without Premium’s analysis.

Get in touch to discuss how Premium can help drive your business in Walmart today.

We did it for a major electronics manufacturer. See how we can do it for you.

“One of Premium’s strengths is its ability to adapt to change. In a technology company, a lot of things happen last minute. Premium is very quick to figure out ways to solve our problems."
– DAVID BILTON, HEAD OF RETAIL ACTIVATION, NEST

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As a Walmart Preferred Service Provider, Premium provides merchandising solutions for a wide range of Walmart suppliers chainwide.

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