Strategic Merchandise Planning at Walmart
An essential element of merchandise planning is the customer strategy. A customer strategy focuses on enhancing customer value to bolster sales. Besides, it encompasses close collaboration between the businesses and customers to define and regularly monitor relevant metrics from the customer’s side (Berryhill, 2021). A customer strategy is vital because it infuses customer value throughout the organization. Every sales, after-sales, finance, and communication department staff member is responsible for applying customer value insights.
Vendors’ Role in Walmart’s Merchandise Planning
Walmart’s suppliers are significant in delivering the company’s merchandise goals. It is one of the reasons why Walmart shares crucial customer data to guide its stocking (Greenspan, 2019). Sharing such data with vendors initially sparked fears that it could cause a power shift, but that has not been the case. Vendors leverage their access to Walmart’s point-of-sale data to ensure effective merchandise planning.
Suppliers use Walmart’s vendor-managed inventory model to decide when to deliver additional merchandise. One of the critical benefits of vendor-controlled inventory systems is that it minimizes delays (Greenspan, 2019). Besides, the design minimizes inventory management costs. Walmart does not incur additional inventory management costs to manage each supplier’s goods. Instead, the company passes the costs to the charges to suppliers.
Recommendations on E-Commerce Markets
Walmart faces tough competition from online retailers like Amazon. To address the competition, Walmart should integrate online and physical shopping. The system will allow customers to order online and shop from a physical location. Integrating online and physical shopping will save customers from travelling to a store only to find the unavailable product they need.
References
Berryhill, J. (2021, July 2). Council Post: Transforming Customer Value into a Key Business Strategy. Forbes. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2021/07/02/transforming-customer-value-into-a-key-business-strategy/?sh=1e36c0912e99
Greenspan, R. (2019, February 21). Walmart’s Inventory Management – Panmore Institute. Panmore Institute. http://panmore.com/walmart-inventory-management
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Question 
As the retail marketplace expands, Walmart’s strategic planning must continue to adapt for the company to remain competitive. Changes in market trends, increasing globalization, evolving consumer behaviours, technological advancements, and other factors require that retailers base their strategic plans on data derived from the analysis of competitors, consumers, and existing/new markets. These analyses allow companies like Walmart to develop strategic merchandising plans to keep them at the forefront of retail success.
Strategic Merchandise Planning at Walmart
Instructions
Use course content, outside research, past coursework, and your professional experience to answer the following:
1- When considering a strategic merchandise plan, select the one element you believe is most important: the product strategy, the cross-channel strategy (brick-and-mortar, online, other), or the customer strategy. Explain your rationale.
2- Should Walmart’s vendors play a role in developing the company’s strategic merchandise plan? Explain your rationale.
3- Make one recommendation for Walmart’s strategic merchandise plan to help the company expand its presence in the e-commerce marketplace.