Walmart, the world’s largest retailer, has been investing heavily in machine learning and data analytics to stay ahead of the curve. The company has been using machine learning to optimize various aspects of its business, including supply chain management, pricing strategies, and customer experience.
One of the key areas where Walmart has been using machine learning is in optimizing its supply chain. In 2014, Walmart started using machine learning to predict demand for products and optimize inventory levels. This enabled the company to reduce excess inventory and improve product availability, resulting in a reduction in out-of-stock items by 16%.
Walmart has also been using machine learning to optimize its pricing strategies. In 2017, the company announced that it had developed an algorithm that automatically adjusts prices based on competitor prices and market demand. This algorithm, called the “Competitive Price Adjustment” tool, helped Walmart increase its online sales by 35%.
In addition to supply chain and pricing optimization, Walmart has been using machine learning to improve the customer experience. For example, the company has developed a machine learning-based system that provides personalized recommendations to customers based on their purchase history and browsing behavior. This system has helped Walmart increase its online sales by 10-15%.
Walmart has also been investing in machine learning to improve its fraud detection capabilities. In 2018, the company launched a machine learning-based fraud detection system that analyzes transaction data in real-time to detect fraudulent activity. This system has helped Walmart reduce fraudulent transactions by 10%.
Overall, Walmart’s machine learning initiatives have had a significant impact on the company’s revenue and profit margins. In 2020, the company’s revenue was $559 billion, up from $514 billion in 2019. Walmart’s net income in 2020 was $14.9 billion, up from $6.7 billion in 2019. While it is difficult to attribute these increases directly to the company’s machine learning initiatives, it is clear that these initiatives have played a significant role in Walmart’s success.
Sources:
- https://www.walmart.com/impact/2019-environmental-social-governance-report/_proxy?proxyUrl=https%3A%2F%2Fcorporate.walmart.com%2Fsites%2Fdefault%2Ffiles%2F2020-06%2FWalmart_ESG_Report_2019.pdf
- https://www.businessinsider.com/walmart-algorithmic-pricing-tool-online-sales-2017-4
- https://www.cnbc.com/2019/08/08/walmart-using-ai-machine-learning-to-detect-transaction-fraud.html
