Competitors are Better Because Wal-Mart Exists. Heck, Life is Better Because Wal-Mart Exists.

I think Walmart has done a great job of utilizing their data in the right way as it enables them to meet the demand of customers almost instantly. By tracking down the products and the amounts sold during a specific time, day of week, and period of the year, they can almost predict what customers will need and stock the shelves with items accordingly. Hurricane season approaching? No worries, Walmart's already got the shelves lined with nonperishables. Even before summer arrives, the stores are already rolling out beach, bbq, and other outdoor essentials ready to be purchased. Noting the frequency of shoppers at certain points in time also helps them better manage the work schedule by scheduling more employees in necessary locations and during the most crucial times. As the article mentions, the data that Walmart is capturing on product movement helps to improve every point in the supply chain. By tracking the purchases, Walmart is able to communicate effectively and in a timely manner with its suppliers about what products need to be replenished. The data enables Walmart to establish more accurate goals for its suppliers that are in line with customer demand so that suppliers understand exactly what they need to achieve. All of this translates to the customers being able to purchase what we need when we need it. With every trip to Walmart, I am always able to leave with what I came to get. They've got supply and demand all figured out.

Most people regard Walmart as the one-stop shop, which lessens the burden of having to visit multiple locations to obtain everything on our shopping list. Most of us (speaking from a college student's standpoint) would prefer to skip the extra trip to HEB and tackle our grocery shopping while we're out on a toilet paper run. With added features like the gas pump, garden center, carwash station, and tire center, Walmart continues to expand its offerings, thereby making it possible for us to complete our errands in one trip. Yet, while we all appreciate Walmart for it, we often tend to overlook the effort that it actually takes to be able to meet our growing and changing demands on an ongoing basis. Out of all the years I’ve been shopping at Walmart, I’ve had but a handful of unpleasant experiences concerning out-of-stock items and unbearably long checkout lines. Otherwise, I feel that they are consistently well-stocked and offer a good variety for each product, which means their relationship with the supplier is fairly efficient.

I’m personally not bothered by the privacy issues associated with the data collection because I trust that they are not amanipulating the information and using it in unauthorized ways. This is a tough issue to deal with and one that is prevalent in many industries since our personal information can be stored and permanently saved in databases anytime we enter it into a computer—for instance, when we make an online purchase. And with the major advancements in our current field of technology, there’s essentially no limit on how and how much information can be collected and manipulated. As a low-price marketer, however, Walmart should have little incentive to spend the time and effort in gathering personal information about each of its shoppers. I can imagine how tedious this task would be and see little benefit that it would serve for Walmart in the meantime. Rather, it would be more beneficial for the company to focus on gathering data on the products itself in terms of the movements, complementary products often sold in conjunction, and the periods in which they are in the greatest/least demand. A database of this type of information would enable the superstore to understand and predict purchasing behavior and, accordingly, stock its shelves to meet demands at any given time. For instance, by tracking the type of items typically sold during "vacation season", Walmart can prepare to supply these products ahead of time and even offer complementary items as a reminder to consumers during the months leading up to that season. Stated in this way makes the data collection almost harmless and even advantageous to the consumer. As the article states, low-price marketers care more about “collectively what goes into the shopping cart” of the purchaser rather than the individual purchasers themselves. 

I should also expect and hope that the information that Walmart has gathered about its customers is not being abused or sold to other companies for a profit motive. The article mentions that Walmart announced it would no longer share its data with other companies, which provides some reassurance; however, this expectation would be better supported if the company also takes active measures and has in place effective safeguards to protect their data. Again, I don't have concerns with Walmart any more than I do with other places at which I regularly shop. I realize that everytime I make a purchase with a credit card or fill out any sort of questionaire, my data is being entered into a database that's used by the company for some purpose. If there were ever a question about it, I would simply withhold information or pay with cash!

Although I’m a proponent of scan-based technology, I can see that it can potentially unload a huge burden on suppliers, whose profits will likely take a hit. Since they would have a play a larger role in ensuring that their products are sold, suppliers will have to start worrying about placement and promotions of their products to induce higher purchases. This calls for greater investment by each individual supplier, who may even have to start investing in the same types of technology that retailers are using to track product movement and predict demand. This type of arrangement is certainly more efficient for Walmart and beneficial to consumers who will end up saving a few extra cents, but it definitely puts the burden on suppliers. And with the bargaining power that Walmart has, suppliers will have no choice but to acquiesce. So the problem now turns into one dealing with the excessive and almost exploitive powers of the superstore. I wonder how this type of arrangement will affect the client-supplier relationship in the end...