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The Walmart Strategy Small Brands Should Be Watching | Fast Five Shorts · Omni Talk Retail

• 0:00
  Walmart
• 0:00
  is
• 0:00
  rolling
• 0:01
  out
• 0:01
  a
• 0:01
  new
• 0:01
  prepaid
• 0:02
  consolidation
• 0:03
  program
• 0:03
  that
• 0:03
  simplifies
• 0:04
  inbound
• 0:04
  logistics
• 0:05
  for
• 0:05
  suppliers,
• 0:06
  allowing
• 0:06
  them
• 0:07
  to
• 0:07
  ship
• 0:07
  products
• 0:07
  to
• 0:08
  a
• 0:08
  single
• 0:08
  location
• 0:08
  under
• 0:09
  one
• 0:09
  national
• 0:10
  purchase
• 0:10
  order,
• 0:11
  rather
• 0:11
  than
• 0:11
  managing
• 0:12
  individual
• 0:12
  shipments
• 0:13
  to
• 0:13
  multiple
• 0:13
  distribution
• 0:14
  centers,
• 0:15
  according
• 0:15
  to
• 0:15
  Supply
• 0:16
  Chain
• 0:16
  Dive.
• 0:16
  After
• 0:17
  receiving
• 0:17
  the
• 0:17
  shipment
• 0:18
  at
• 0:18
  one
• 0:18
  location,
• 0:18
  Walmart
• 0:19
  takes
• 0:19
  over
• 0:19
  and
• 0:20
  distributes
• 0:20
  the
• 0:20
  inventory
• 0:21
  across
• 0:21
  42
• 0:22
  of
• 0:22
  its
• 0:22
  regional
• 0:23
  distribution
• 0:23
  centers,
• 0:24
  boosting
• 0:24
  transportation
• 0:25
  efficiency
• 0:26
  in
• 0:26
  the
• 0:26
  process.
• 0:27
  The
• 0:27
  program
• 0:27
  is
• 0:28
  designed
• 0:28
  to
• 0:28
  boost
• 0:28
  inventory
• 0:29
  replenishment
• 0:29
  precision
• 0:30
  and
• 0:30
  get
• 0:30
  products
• 0:31
  on
• 0:31
  shelves
• 0:31
  to
• 0:31
  customers
• 0:32
  faster.
• 0:33
  It
• 0:33
  will
• 0:33
  scale
• 0:33
  in
• 0:34
  phases,
• 0:34
  with
• 0:34
  supplier
• 0:35
  participation
• 0:35
  prioritized
• 0:36
  based
• 0:37
  on
• 0:37
  volume
• 0:37
  alignment
• 0:38
  and
• 0:38
  capacity
• 0:38
  expansion.
• 0:39
  Chris,
• 0:40
  here's
• 0:40
  the
• 0:40
  question.
• 0:41
  Is
• 0:41
  Walmart's
• 0:42
  prepaid
• 0:42
  consolidation
• 0:43
  program
• 0:43
  a
• 0:44
  genuine
• 0:44
  win
• 0:44
  for
• 0:45
  suppliers,
• 0:45
  or
• 0:46
  is
• 0:46
  this
• 0:46
  Walmart
• 0:47
  further
• 0:47
  consolidating
• 0:48
  control
• 0:48
  over
• 0:48
  the
• 0:49
  supply
• 0:49
  chain
• 0:49
  in
• 0:49
  a
• 0:50
  way
• 0:50
  that
• 0:50
  could
• 0:50
  hurt
• 0:50
  smaller
• 0:51
  vendors
• 0:51
  over
• 0:51
  time?
• 0:52
  I
• 0:52
  can't
• 0:52
  wait
• 0:53
  to
• 0:53
  hear
• 0:53
  what
• 0:53
  you
• 0:53
  have
• 0:53
  to
• 0:53
  say
• 0:53
  about
• 0:54
  this
• 0:54
  one
• 0:54
  because
• 0:54
  I
• 0:54
  have
• 0:54
  a
• 0:54
  feeling,
• 0:55
  I
• 0:55
  have
• 0:55
  a
• 0:55
  feeling
• 0:55
  you're
• 0:55
  gonna,
• 0:56
  I
• 0:56
  don't
• 0:56
  know
• 0:56
  what
• 0:56
  you're
• 0:57
  gonna
• 0:57
  say
• 0:57
  actually,
• 0:57
  but
• 0:57
  I
• 0:57
  have
• 0:58
  a
• 0:58
  feeling
• 0:58
  you
• 0:58
  might
• 0:58
  disagree
• 0:59
  with
• 0:59
  me
• 0:59
  on
• 0:59
  this.
• 0:59
  But
• 1:00
  I,
• 1:00
  I
• 1:01
  think
• 1:01
  overall,
• 1:01
  I
• 1:02
  think
• 1:02
  this,
• 1:02
  this,
• 1:03
  this
• 1:03
  headline's
• 1:03
  a
• 1:03
  win,
• 1:04
  win
• 1:04
  for
• 1:04
  both
• 1:04
  sides.
• 1:05
  I
• 1:05
  think
• 1:05
  it's
• 1:05
  a
• 1:05
  page
• 1:05
  right
• 1:06
  out
• 1:06
  of
• 1:06
  Amazon's
• 1:07
  Flywheel
• 1:08
  because
• 1:08
  it
• 1:08
  supports
• 1:09
  the
• 1:09
  vendors
• 1:09
  who
• 1:10
  don't
• 1:10
  have
• 1:10
  the
• 1:10
  logistics
• 1:11
  prowess
• 1:12
  to
• 1:12
  subdivide
• 1:13
  everything
• 1:13
  out
• 1:13
  themselves,
• 1:13
  which
• 1:14
  is,
• 1:14
  which
• 1:14
  is
• 1:14
  a
• 1:14
  win.
• 1:15
  And
• 1:15
  Walmart
• 1:16
  gets
• 1:16
  them
• 1:16
  selling
• 1:17
  on
• 1:17
  their
• 1:17
  site
• 1:17
  too.
• 1:18
  So,
• 1:19
  you
• 1:19
  know,
• 1:19
  so
• 1:19
  it
• 1:20
  subsidizes
• 1:21
  and
• 1:21
  that
• 1:21
  whole
• 1:21
  effort,
• 1:22
  in
• 1:22
  a
• 1:22
  way,
• 1:22
  from
• 1:23
  Walmart
• 1:23
  standpoint,
• 1:24
  they
• 1:24
  want
• 1:24
  more,
• 1:24
  they
• 1:25
  want
• 1:25
  more
• 1:25
  vendors
• 1:25
  on
• 1:26
  their
• 1:26
  marketplace
• 1:26
  because
• 1:27
  it
• 1:27
  subsidizes
• 1:28
  the
• 1:28
  retail
• 1:28
  media
• 1:28
  expansion
• 1:29
  that
• 1:29
  comes
• 1:29
  from
• 1:29
  naturally
• 1:30
  growing
• 1:30
  items
• 1:31
  available
• 1:32
  via
• 1:32
  its
• 1:32
  marketplace.
• 1:33
  So,
• 1:33
  voila,
• 1:34
  both
• 1:34
  sides
• 1:35
  win
• 1:35
  here.
• 1:35
  But
• 1:35
  Shelly,
• 1:36
  I'm
• 1:36
  really
• 1:36
  scared
• 1:36
  you're
• 1:37
  going
• 1:37
  to
• 1:37
  tell
• 1:37
  me
• 1:37
  that
• 1:37
  I'm
• 1:37
  missing
• 1:38
  something
• 1:38
  big.
• 1:39
  What,
• 1:39
  what,
• 1:39
  what
• 1:39
  am
• 1:40
  I
• 1:40
  missing?
• 1:40
  Anything?
• 1:41
  We
• 1:41
  agree
• 1:41
  on
• 1:41
  this
• 1:41
  one.
• 1:42
  Walmart,
• 1:42
  okay?
• 1:43
  Walmart
• 1:43
  is
• 1:44
  fantastic
• 1:44
  at
• 1:45
  removing
• 1:45
  complexity.
• 1:46
  And
• 1:46
  I
• 1:46
  think
• 1:46
  this
• 1:46
  is
• 1:47
  an
• 1:47
  example
• 1:47
  of
• 1:47
  Walmart
• 1:48
  removing
• 1:48
  complexity.
• 1:50
  Think
• 1:51
  it
• 1:51
  also
• 1:51
  helps
• 1:51
  them
• 1:52
  become
• 1:52
  incredibly
• 1:53
  indispensable
• 1:53
  to
• 1:54
  small
• 1:54
  suppliers
• 1:55
  in
• 1:56
  a
• 1:56
  way
• 1:56
  that
• 1:56
  really
• 1:56
  helps
• 1:57
  them
• 1:57
  get
• 1:57
  brands
• 1:58
  to
• 1:58
  shelves
• 1:59
  faster.
• 2:00
  And
• 2:00
  so
• 2:01
  I
• 2:01
  think
• 2:01
  this
• 2:01
  is
• 2:01
  great.
• 2:02
  And
• 2:02
  I
• 2:02
  think
• 2:02
  it's
• 2:02
  a
• 2:02
  win.
• 2:03
  Win
• 2:03
  all
• 2:03
  the
• 2:03
  way
• 2:03
  around
• 2:03
  for
• 2:04
  small
• 2:04
  suppliers
• 2:05
  and
• 2:05
  for
• 2:05
  Walmart.
• 2:06
  Yeah,
• 2:06
  so
• 2:06
  that's
• 2:07
  interesting.
• 2:07
  So,
• 2:07
  yeah,
• 2:07
  so
• 2:07
  that's
• 2:08
  what,
• 2:08
  that's
• 2:08
  where
• 2:08
  my
• 2:08
  head
• 2:08
  was
• 2:09
  too.
• 2:09
  But
• 2:09
  in
• 2:09
  the
• 2:09
  article
• 2:09
  it
• 2:09
  was
• 2:10
  kind
• 2:10
  of,
• 2:10
  it's
• 2:10
  kind
• 2:10
  of
• 2:10
  pitching
• 2:11
  it
• 2:11
  the
• 2:11
  other
• 2:11
  way.
• 2:11
  Like
• 2:11
  the
• 2:11
  small
• 2:12
  suppliers
• 2:12
  need
• 2:12
  to
• 2:12
  be
• 2:12
  on
• 2:12
  the
• 2:13
  lookout
• 2:13
  for
• 2:13
  this.
• 2:13
  And
• 2:13
  I
• 2:13
  was
• 2:13
  kind
• 2:13
  of
• 2:14
  like,
• 2:14
  no,
• 2:14
  this
• 2:14
  actually
• 2:15
  feels
• 2:15
  like
• 2:15
  a
• 2:15
  really
• 2:15
  great
• 2:16
  thing
• 2:16
  for
• 2:16
  the
• 2:16
  small
• 2:16
  suppliers
• 2:17
  and
• 2:17
  it
• 2:17
  enables
• 2:18
  more
• 2:18
  mall
• 2:19
  suppliers
• 2:19
  to
• 2:19
  work
• 2:19
  with
• 2:20
  Walmart.
• 2:20
  Am
• 2:20
  I?
• 2:21
  That's
• 2:21
  right,
• 2:21
  right.
• 2:22
  Yeah,
• 2:23
  it
• 2:23
  is.
• 2:23
  And
• 2:23
  I
• 2:24
  think
• 2:24
  what
• 2:24
  we're
• 2:24
  seeing
• 2:25
  now
• 2:25
  around
• 2:25
  especially
• 2:25
  how
• 2:26
  brands
• 2:26
  are
• 2:26
  being
• 2:27
  built,
• 2:28
  you
• 2:28
  can
• 2:28
  be
• 2:28
  a
• 2:28
  single
• 2:29
  item
• 2:29
  supplier
• 2:29
  and
• 2:30
  have
• 2:30
  a
• 2:30
  fantastic
• 2:30
  brand.
• 2:31
  When
• 2:31
  you
• 2:31
  look
• 2:31
  at
• 2:31
  brands
• 2:32
  like
• 2:32
  Supergoop
• 2:33
  and
• 2:33
  others
• 2:34
  and
• 2:34
  you
• 2:34
  may
• 2:35
  not
• 2:35
  have
• 2:35
  the,
• 2:36
  the
• 2:36
  sophistication
• 2:37
  like
• 2:37
  a
• 2:37
  Procter
• 2:37
  and
• 2:38
  gambler
• 2:38
  Unilever
• 2:39
  to
• 2:39
  have
• 2:39
  this
• 2:39
  huge
• 2:39
  network.
• 2:40
  And
• 2:40
  so
• 2:41
  I
• 2:41
  think
• 2:41
  that
• 2:41
  this
• 2:41
  is
• 2:42
  Walmart
• 2:42
  taking
• 2:43
  cost
• 2:43
  out
• 2:43
  of
• 2:43
  the
• 2:43
  system
• 2:44
  for
• 2:44
  small
• 2:44
  suppliers.
• 2:45
  They're
• 2:46
  able
• 2:46
  to
• 2:46
  control
• 2:46
  and
• 2:47
  manage
• 2:47
  the
• 2:47
  inventory
• 2:48
  better,
• 2:48
  they're
• 2:48
  able
• 2:48
  to
• 2:49
  stay
• 2:49
  in
• 2:49
  stock
• 2:49
  and
• 2:49
  on
• 2:50
  shelves
• 2:50
  better.
• 2:51
  And
• 2:51
  yeah,
• 2:52
  so
• 2:52
  the
• 2:52
  only
• 2:52
  downside
• 2:53
  for
• 2:53
  small
• 2:53
  suppliers
• 2:54
  is
• 2:54
  you
• 2:54
  may
• 2:54
  become
• 2:54
  overly
• 2:55
  dependent
• 2:55
  on
• 2:55
  Walmart
• 2:56
  because
• 2:56
  they
• 2:57
  are
• 2:57
  essentially
• 2:57
  running
• 2:58
  your
• 2:58
  supply
• 2:58
  chain.
• 2:58
  But
• 2:59
  other
• 2:59
  than
• 2:59
  that
• 3:00
  I
• 3:00
  think
• 3:00
  it's
• 3:00
  a
• 3:00
  win.
• 3:01
  Yeah.
• 3:01
  And
• 3:02
  you're
• 3:02
  not
• 3:02
  really
• 3:02
  going
• 3:03
  to
• 3:03
  care
• 3:03
  as
• 3:03
  long
• 3:03
  as
• 3:03
  you're
• 3:03
  selling
• 3:03
  those
• 3:04
  units
• 3:04
  through
• 3:04
  Walmart
• 3:04
  too.
• 3:05
  Like,
• 3:05
  you
• 3:05
  know,
• 3:05
  and
• 3:05
  you're,
• 3:06
  and
• 3:06
  you're
• 3:06
  making
• 3:06
  money
• 3:06
  at
• 3:06
  the
• 3:06
  end
• 3:07
  of
• 3:07
  it.
• 3:07
  The
• 3:07
  funny
• 3:07
  thing
• 3:07
  about
• 3:08
  it
• 3:08
  too,
• 3:08
  which
• 3:08
  you
• 3:08
  got
• 3:08
  me
• 3:08
  thinking
• 3:09
  about
• 3:09
  is
• 3:10
  Walmart
• 3:10
  is
• 3:10
  taking
• 3:10
  a
• 3:11
  page
• 3:11
  from
• 3:11
  Amazon
• 3:12
  directly.
• 3:12
  You
• 3:12
  know,
• 3:13
  this
• 3:13
  is
• 3:13
  directly
• 3:13
  a
• 3:14
  page
• 3:14
  out
• 3:14
  of
• 3:14
  their
• 3:14
  book.
• 3:15
  And
• 3:15
  then
• 3:15
  when
• 3:16
  you
• 3:16
  think
• 3:16
  about
• 3:16
  their
• 3:16
  in
• 3:16
  store
• 3:17
  experience
• 3:17
  and
• 3:17
  their
• 3:18
  Walmart
• 3:18
  plus
• 3:18
  they've
• 3:19
  also
• 3:19
  been
• 3:19
  taking
• 3:19
  pages
• 3:19
  out
• 3:20
  of
• 3:20
  Target
• 3:20
  so
• 3:21
  they're
• 3:21
  getting
• 3:21
  it
• 3:21
  from
• 3:22
  both
• 3:22
  ends
• 3:22
  strategically,
• 3:23
  which
• 3:23
  I
• 3:23
  think
• 3:24
  is
• 3:24
  really
• 3:24
  fascinating.