How Walmart Use Supply Chain Analytics

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Walmart's dominance in the retail sector, holding the title of the world's largest retailer with global sales surpassing even Amazon, is underpinned by strategic investments. Between 2019 and 2020, a significant portion of Walmart's strategic capital expenditures, a whopping 72%, was dedicated to supply chain transformation, amounting to over $11 billion.

This substantial investment has proven pivotal, as evidenced by Walmart's impressive revenue of nearly $612 billion in 2023. The retail giant strategically utilized these funds to enhance its supply chain through the integration of cutting-edge technologies, infrastructure improvements, and a strong focus on ecommerce.

The key to Walmart's success lies in its meticulous attention to the supply chain, ensuring faster, more flexible fulfillment and accurate demand forecasting. With nearly 6,300 international locations operating in 28 countries and over 11,700 retail units globally, Walmart's commitment to supply chain excellence has allowed it to maintain control over its logistics network and streamline fulfillment processes

Keeping the example of Walmart in mind, in this article, we take a closer look at How to use Supply Chain Analytics use case to Improve Supplier & Logistics Performance.

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About Dataset

Alright, let's take a closer look at our Superstore dataset.

It's basically an information on our Superstore sales – we've got order IDs, order and shipping dates, details about the shipping mode, customer names, and their locations. Plus, we have all the nitty-gritty details about the products too – their categories, names, and the important numbers like sales amount, quantity, discounts, and profit.

This data is enough for digging into supply chain analysis, sales performance, understanding profitability, and even decoding customer behavior.

With all this information at our fingertips, we can make smarter decisions about supply chain management. By digging into the dataset, we can uncover patterns, trends, and insights that will help us optimize our operations and improve overall efficiency. So, let's roll up our sleeves and start exploring!

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Each row in the dataset corresponds to an order made by a customer. We have the following features:

Order Shipment : 

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Product : 

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Other Feature : 

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The SuperStore Dataset contains over 10194 orders and 13 of our Columns have String Data type, 4 of our Columns have Integers Data Type and 2 of the columns have Date Data Type.

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How to use Supply Chain Analytics to Improve Supplier & Logistics Performance?

To enhance supply chain analytics and optimize supplier and logistics performance, a systematic approach is crucial. This process begins by focusing on four fundamental aspects of data analysis:

• 1. Identify the users or stakeholders for the dashboard.
• 2. Design Empathy Map to define Users' Goals and Challenges or pain points.
• 3. Identify Metrics or KPIs Matter the Most.
• 4. Understand the Objectives and Goals.
• 5. Ask Business Questions

I know it looks a bit overwhelming that’s why in this article, we'll lay the foundation for a top-notch supply chain optimization analysis. 

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Step 1: Identify the users or stakeholders for the analysis.

Start by clearly defining the primary users or stakeholders for the supply chain data story. For this discussion, let's consider the role of a Supply Chain Manager as a key user. It's essential to gain a deep understanding of their diverse needs, challenges, and priorities to tailor an effective data narrative.

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User Persona : Supply Chain Manager

Responsibilities:

• Optimizing supply chain processes to improve efficiency and reduce costs.
• Managing inventory levels to meet customer demand while minimizing holding costs.
• Ensuring timely delivery of products to customers.
• Collaborating with suppliers and logistics partners to streamline operations.

Needs:

• Access to comprehensive supply chain data for analysis and decision-making.
• Tools for inventory management and demand forecasting.
• Regular updates on inventory levels, order fulfillment, and delivery performance.

Challenges:

• Balancing inventory levels to avoid stockouts while minimizing holding costs.
• Addressing disruptions in the supply chain, such as delays or shortages.
• Ensuring compliance with regulatory requirements and quality standards.

Since, we have defined the User Persona & have mapped the needs, challenges and responsibilities. Our Next step will be to design an Empathy Map which will map the pain points of the user.

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Step 2: Design Empathy Map

The next step involves creating an empathy map to deeply understand the experiences and expectations of the Supply Chain Manager. This visual tool provides insights into their emotions, aspirations, and pain points. By empathizing with their perspectives, the aim is to design a data story that not only meets functional requirements but also resonates with the human aspects of their roles.

Empathy Map Components:

• Say: Articulate the thoughts and expressions of the Supply Chain Manager.
• Think: Understand their internal thoughts and considerations.
• Do: Identify the actions and behaviors associated with their role.
• Feel: Pinpoint the emotional aspects, concerns, and motivations.

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Step 3: Identify the Key Performance Indicators (KPI’s)

The heartbeat of any analysis lies in KPI’s and their Metrics. It's crucial to identify the KPIs that matter most to achieving the defined objectives and by focusing on the most relevant metrics, organizations can gain actionable insights into their supply chain operations. 

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Step 4: Understand the Goals & Objectives of User

Now, on the basis of Empathy Map and KPI’s, we need to define our goals and objectives of the Users. So, that it will align with the data story functionalities to ensure decision making. Here are the Key Objectives & Goals : 

Objective : To enhance supply chain efficiency and profitability by analyzing sales, profit, and shipment data to optimize shipping methods, improve same-day delivery performance, maximize regional impact, and optimize technology subcategory performance.

Goals : To Improve supply chain efficiency and reduce costs, enhance customer satisfaction through timely delivery and product availability, strengthen relationships with suppliers and logistics partners and mitigate risks and uncertainties in the supply chain.

Based on the defined goals & objectives, your next step will be to provide actionable insights to make a mark on Business Decisions.

Actionable Insight: Refrain from shipping machines via same-day delivery mode due to their profitability constraints. Allocate machines to more cost-effective shipping methods to mitigate losses and improve overall profitability within the same-day.

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Step 5 : Ask Business Questions

Beyond KPI’s, organizations must engage in business-driven inquiry. This involves asking strategic questions that directly align with overarching business objectives. 

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Q1) What Are the Sales And Profit By Ship Mode?

Metrics: Total sales amount, total profit generated

Key Analysis: Calculate total sales and profit for each mode of shipment (e.g., standard, express, same-day) to determine the most profitable and efficient shipping methods.

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Q2) How Are Sales And Profit Performing Yearly On Same-Day Ship Mode?

Metric: Yearly sales, yearly profit

Key Insight: Evaluate the yearly performance of sales and profit specifically for same-day shipments to identify trends and potential areas for improvement in same-day delivery services.

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Q3) Which Region Is Not Performing On Same-Day Mode In 2023?

Metric: Same-day shipment performance by region

Key Insight: Identify the region that is underperforming in terms of same-day shipments in 2023 based on metrics such as sales, profit, and delivery efficiency.

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Q4) What Is Category Wise Impact In South Region In Year 2023?

Metric: Sales and profit by product category

Key Insight: Analyze the impact of different product categories on sales and profit in the South region during 2023 to understand which categories contribute the most to performance in the region.

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Q5) Technology Subcategory Profit And Sales In South Region Same Day 2023?

Metric: Sales, profit (by category and subcategory by Region)

Key Insight: Dive deeper into the performance of the Technology subcategory specifically for same-day shipments in the South region in 2023 to understand the factors influencing its profitability and sales within the same-day delivery segment.

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Explore Supply Chain Analytics Data Story Here👇

By framing this data story in alignment with business goals, organizations can get deeper insights that drive impactful decisions.

Conclusion

By combining a user-centric approach with data-driven insights and strategic inquiries, organizations can navigate the complexities of their supply chains with confidence and agility. The end goal is not just efficiency but the creation of a supply chain that adapts, evolves, and serves as a strategic asset in a competitive marketplace.

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