This benefit is achieved because suppliers can directly access current data about the inventory of their goods at Walmart stores. Walmart’s vendor-managed inventory has the benefit of minimizing delays in the movement of inventory across the supply chain. This strategy shifts some of the inventory control activities onto the side of the suppliers. In this model, suppliers access data from the company’s information systems, they decide when to send additional goods to Walmart, while the company monitors and controls the actual transit of goods from warehouses to the stores.

Such leadership establishes the company’s competitive advantages relative to firms like Target and Amazon in the retail market. Walmart’s Vendor-Managed Inventory Model Walmart’s success in managing its inventory is partly due to the effective implementation of the vendor-managed inventory model. While there are a variety of other factors contributing to the success of this business, advanced inventory management is one of the core organizational capabilities that enable Walmart’s leadership in the global retail industry. Thus, Walmart is an example of the benefits of advanced technology and innovation in optimizing inventory management performance. The company has perfected the art of innovating its inventory management methods and strategies. Walmart is known for cutting-edge technological applications for its inventory management aspect of operations. Considering the mammoth size of the company, effective and efficient inventory management is of critical importance in operational effectiveness. Walmart Inc.’s inventory management is one of the biggest contributors to the success of the multinational retail business.

Walmart inventory