Key Challenges for Inventory Software for Walmart
Posted: Sep 17, 2020
Wal-Mart launches a distribution channel that is hard to imitate. The system gives a strong competitive lead over the competitors. Distribution channels were very well organized and allowed for lower pricing. Moreover, Wal-Mart's average low pricing and organic foods policy is beneficial in gaining customer loyalty that drives the company's growth. This regularity in price and service permitted Wal-Mart to establish a status of consistency.
Here in this article, we will look at the key challenges for inventory software for Walmart.
The first challenge is about criticism of Wal-Mart. The firm dealt with a torrent of litigations and problems regard to its employees including low salaries, poor working atmosphere, gender discrimination, restriction in the seller. This criticism may affect its commercial reputation. The challenges here are how inventory software for Wal-Mart can govern the stability between low pricing systems and employee profits.
The second challenge is Wal-Mart tries to raise in the worldwide market. The company tackled with differentiation in culture. The retail giant had some issues with consumers and had to make some modifications. Some research says that Wal-Mart is behind the natives in their knowledge of taste. However, the road has not been without mishap, Wal-Mart has to investigate carefully before going overseas.
A recent inspection by the Harvest Group and Walmart Help acknowledged one problem as the major challenge faced by Walmart vendors "fixing poor retail implementation."
56% of defendants chose this item from five choices on the survey. The next major issue was "unlocking insights from big data." The latest study from Accelerated Analytics found that the regular Walmart supplier spends 18 workforce hours per week simply formulating Retail Link data for analysis.
Respondents were thinking of things like promotional compliance and keeping merchandise on the shelves. While on-shelf accessibility has been in the news freshly, it is not a new problem. Research by the University Of Chicago Graduate School Of Business a few years ago stated that 65% of on-hand inventory software for Walmart records were wrong in the chain of stores inspected, even though an electronic POS tracking system was in place. 240,000 items were pretentious in 37 stores.
The same research found that 16% of the products, which were in the stores, were mislaid — they were in the store and on a shelf, but not on the right shelf.
The study deduced that these two problems caused a major loss of profit for the vendor. For suppliers, this kind of blunder can result in not single in lost sales opportunities, but also ongoing estimating problems. When no sales are taped because the item is not in stock or is shelved where customers can’t locate it — but Retail Link displays items in stock — demand forecasting can be imprecise going onward from that point. Buyers might even drop an item because it looks as though the product is on the shelf and being excluded by shoppers.
The University of Chicago study deduced that issues were generally arising in the drains, so to speak, from mistakes by retail workers. They mentioned errors like scanning one item twice while checking out two items, or exchanging a scratched item with a new one without scanning the barcodes of the two items. These minor mistakes add up across a high volume of transactions. The authors recommended arrangements vendors might take to decrease errors.
Schedule an ERP Gold demo that helps you to acknowledge that which attributes you have to consider about inventory software to reduce errors.