Can Vendors Be Doing More To Reduce In-Store Out-Of-Stocks?

Walmart introduced Scintilla In-Store, an application that gives supplier field representatives working across Walmart stores near real-time visibility into shelf inventory and store execution.

The application, the newest addition to Walmart’s Scintilla portfolio, combines tools, “real-time” store data, performance metrics, and supplier-assigned tasks into a single interface to help the vendor field reps support their categories within Walmart stores.

“For example, by leveraging the same item and modular information used by store associates, field representatives can quickly identify which items may be running low and need replenishment,” Walmart states in a press release. “They can also help ensure that items shifted on the shelf during busy shopping periods are accurately reflected in Walmart’s inventory systems – addressing common challenges in dynamic store environments. With this information at their fingertips, field representatives can resolve issues in real time, helping to keep shelves stocked and customers satisfied.”

Formerly known as Volt, Scintilla In-Store builds on the innovation of Volt Systems, acquired by Walmart in 2022

Pamela Stewart, North America chief customer officer – retail at The Coca-Cola Company, said in Walmart’s press release, “The enhanced app experience provides real-time inventory visibility and equips our representatives with advanced tools, enabling them to work more efficiently and make data-driven decisions during every store visit.”

Inventory out-of-stocks are often blamed on inaccurate forecasting, slow replenishment and manufacturing delays, but also poor communication between retailers and suppliers.

“The retail industry is highly competitive, and this makes retailers cautious about sharing data with suppliers, partners and other trusted parties,” according to 2023 research from Coresight Research commissioned by Skypad, the retail analytics solution provider. “Moreover, retailers and buyers have historically been adequately served by transactional relationships and are typically resistant to change.”

Coresight’s report also noted that “legacy tools and a reluctance to modernize” has impeded retailer-supplier data sharing.

James Carlson, mid-market consultant and team leader at research firm Circana, in a blog entry advised SMB (small to medium-sized business) vendors to take advantage of shared insights into retailers’ promotional cadence and execution windows.

“An SMB can use inventory and sales data to prioritize high-value SKUs and prove its importance to the retailer’s category sales,” wrote Carlson. “A smaller business can also approach retail partners with insights that help them, such as identifying stores with chronic out-of-stocks on a certain product.” 

In a penned article for Fortune, Are Traasdahl, CEO and founder of Crisp, a provider of retail data solutions, said he sees AI agents helping retailers and suppliers better communicate and collaborate in addressing shared goals ranging from reducing out-of-stock rates to optimizing pricing and promotion, and improving online media spend effectiveness. Traasdahl wrote, “These autonomous agents can share insights (without exposing sensitive raw data), adapt to changing conditions in real time, and offer a path forward for retailers and their consumer packaged goods (CPG) partners to achieve immediate and long-term operational goals.”