Wal-Mart has worked their data into an awesome system. The data gives them estimates of future product demands and allows them to keep business strong by be able to provide customers with what they need. Who knew Pop-Tarts were a big hit for hurricane preparation? There data system tells them to what they should keep stocked up in different stores, as well as specific inventory levels. This reduces inventory costs (they aren’t holding items for long periods of time) and waste. This gives them a competitive advantage over other stores who don’t have this huge amount of data and often run out of stock, causing them to lose customers.
I don’t mind that they are using this information to improve operations, but it does worry me a bit that my personal information could fall into the wrong hands. According to the article “What Wal-Mart Knows About Customers’ Habits” Wal-Mart considers this data top secret and takes serious measures to keep it from anyone else. As long as this is the case I’m not too worried about it, but you do have to wonder about the future and what happens when this data is no longer relevant to their business.
Currently, Wal-Mart is more concerned about using their data to gain insights on individual stores. They make sure each store has the best inventory levels and product mix. The data also informs them to create promotions that target each store’s current demographic and their needs. This is great but Wal-Mart has a huge opportunity to use this data to address individual customers’ needs and find insights on people that could further improve their business. Insights on customers could show new ways to target and market to customers in a very personalized way.
Wal-Mart’s real time inventory system is a benefit to their suppliers. They can let them know ahead of time what the store is running out of and get orders ready. Wal-Mart is very strict with their suppliers and these suppliers have a lot of pressure to make sure deliveries are exactly on time. Because Wal-Mart has such a good supply chain, their suppliers must keep up and improve their operations as well. So even though Wal-Mart is a tough partner, they drive their suppliers to success. Another way Wal-Mart is helping their suppliers is by providing them with some of their data. It can inform the supplier of levels of production they need and therefore reducing waste and inventory costs.
I don’t mind that they are using this information to improve operations, but it does worry me a bit that my personal information could fall into the wrong hands. According to the article “What Wal-Mart Knows About Customers’ Habits” Wal-Mart considers this data top secret and takes serious measures to keep it from anyone else. As long as this is the case I’m not too worried about it, but you do have to wonder about the future and what happens when this data is no longer relevant to their business.
Currently, Wal-Mart is more concerned about using their data to gain insights on individual stores. They make sure each store has the best inventory levels and product mix. The data also informs them to create promotions that target each store’s current demographic and their needs. This is great but Wal-Mart has a huge opportunity to use this data to address individual customers’ needs and find insights on people that could further improve their business. Insights on customers could show new ways to target and market to customers in a very personalized way.
Wal-Mart’s real time inventory system is a benefit to their suppliers. They can let them know ahead of time what the store is running out of and get orders ready. Wal-Mart is very strict with their suppliers and these suppliers have a lot of pressure to make sure deliveries are exactly on time. Because Wal-Mart has such a good supply chain, their suppliers must keep up and improve their operations as well. So even though Wal-Mart is a tough partner, they drive their suppliers to success. Another way Wal-Mart is helping their suppliers is by providing them with some of their data. It can inform the supplier of levels of production they need and therefore reducing waste and inventory costs.
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