Walmart has such a large distribution area and such a large share of the market that many of their suppliers don’t’ have any choice but to comply with the requests of WalMart. Wiedling such power can be a double edged sword. While WalMart may be able to have its suppliers comply with their requests they also run the risk of creating conflict with their suppliers. A prime example of this is with Procter and Gamble who has recently begun offering their products via an online medium so customers can purchase these items directly from Procter and Gamble. WalMart runs the risk of channel conflict in relation to technology and data sharing – WalMart again runs the risk of conflict in terms of sharing data with their suppliers. WalMart has become increasingly proprietary with their data that they collect about their customers. Although they may offer limited access via RetailLink many of the suppliers may begin to push back if they are unable to access data related to their products. Additionally, if and when WalMart decides to completely convert to RFID technology, and WalMart no longer holds the costs for their inventory, suppliers may have major issues with absorbing those costs while WalMart flourishes.
While WalMart is able to collect all this data they are able to provide products to their customers at the right time, right place, and right product. However, they aren’t able to provide products to customers that they don’t know they want, or experiences for that matter. WalMart is able to become a master in inventory management, but experiences is where they lack. Yes – they can react immediately to the Hurricane’s in the South with Pop Tarts and Beer or pair diapers and beer in the grocery aisle for their customers. However they haven’t tapped into creating ideal experiences for their customers. Recently, they have benchmarked against Target in redesigning their stores with lower shelves and more open aisles, but they didn’t get this from their mass quantities of data. They are able to push their suppliers and improve their bottom line using their terabytes of data, but they aren’t leveraging it in a way to improve customer experiences.
