Walmart Takes Another Attempt At Improving Inventory Management

Walmart is revamping its inventory by reducing the number of stock-keeping units. During the past year, the retailer has removed about 15 percent of its store displays and around 2,500 items from its store shelves. Walmart’s attempt in 2009 to rationalize its inventory failed because its SKU-reduction plan failed to consider what customers wanted. To make sure it does not repeat its mistake, Walmart’s inventory management plans include widening aisles up to 10 feet and revising restock times to make sure shelves do not run out of popular products. To ensure the success of its revised stocking strategy, Walmart should consider several methods, including transferability of demand, loyal customer analyses, and what-if and cross-shopping analyses.