Advanced analytics solution drives growth at Walmart.
Premium partnered with a major electronics manufacturer to grow its Walmart business for long-term sustainability. Our proprietary predictive analytics technology provided the foundation for the Premium team to deliver a customized strategy and growth for the client.
The client challenged Premium’s analytics team to manage and improve the on-hand inventory at Walmart.
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.