Walmart is requiring all suppliers to subscribe to the Luminate data service starting in October. Luminate is Walmart’s newest way to share data with suppliers. This includes data that includes an in-depth look at a supplier’s business.
The Bentonville-based retail giant announced last week that the decision support system (DSS) app on its Retail Link portal will be phased out and will no longer be available as of March 1, 2024. The DSS app is what many suppliers use to track their sales, store and distribution center inventory, and predict in-store demand. According to Jami Dennis, founder of VendorMasters, the system is built on older software that has served retailers well for years.
The retail giant said Luminate includes a suite of analytical tools that provide actionable, customer-centric insights to drive better business decisions. Luminate is the result of a collaboration between Walmart Data Ventures and his Dunnhumby, a third-party marketing research technology company. Walmart began selling paid Luminate subscriptions to suppliers two years ago. But now the retailer has rolled out a free version of his Luminate app, available to all suppliers, and says early next year he will replace his old DSS system within Retail Link.
“By investing in innovation, we continue to help our customers save money and live better lives. One of our plans to evolve omnichannel commerce analytics in FY2024 is to expand Walmart in the U.S. starting in October “We are upgrading all of our suppliers and merchants to Walmart Luminate,” Walmart said in an email to suppliers last week.
Walmart says suppliers can subscribe to Walmart Luminate Basic for free or pay for a charter version that provides more data. The retailer said it is in the process of contacting all suppliers with further information on how to register.
“While we recognize that DSS is part of Walmart’s heritage, we believe that the transition from DSS to Walmart Luminate will provide an enhanced experience. “We’ve often asked for more flexibility in our data and how it’s organized, and Walmart Luminate allows us to use it in ways we couldn’t before,” the memo said.
Walmart’s transition schedule calls for suppliers to join Luminate Basic or Charter between October and the end of February. Walmart said it has begun inviting suppliers to join its free Basic plan, which will run through January. Suppliers who already subscribe to Luminate’s paid services do not need to do anything.
Walmart said both Luminate options will give suppliers access to enhanced e-commerce data. New e-commerce data establishes Luminate as the recommended tool for retailers to use in collaboration with suppliers to make data-driven decisions about line reviews, quick module changes, item replacements, and more The retailer said in the note that it will help you.
Dennis equated this change to Apple’s app updates and Microsoft’s operating system updates. He said the company chose to move to Luminate given the growth in e-commerce since the pandemic and Walmart’s focus on omnichannel business. He said the old system did not show e-commerce sales in consolidated reports and it was time for an upgrade.
“We understand that the free version gives suppliers complete visibility into their sales, regardless of where they occur.Given that Walmart fulfills so many orders from its stores, this is necessary for inventory management today,” she added.
Charles Greathouse of High Impact Analytics, who participated in the development of Luminate, said it is a significant upgrade. He said Luminate’s data is better, but different.
“If you want to understand how your data is working across all channels, this is the currency. This is what sellers (buyers) are seeing,” Greenhouse said in a recent post on social media. Said on the podcast.
Insiders say Luminate is likely to be a more secure network than the old system, which allowed data access by bots and many third-party players. Dennis praised Walmart’s upgrade, saying that while there is a bit of a learning curve, he expects the free version will at least save suppliers time and give them a more complete picture of their business. He said suppliers need to embrace the changes that come with omnichannel sales.
“Walmart has always been good at sharing data with suppliers because it’s a win-win for both sides of the deal. Retail Link remains the operating system, but there are a number of new apps that increase visibility of all sales in one report. “That seems like a win to me,” she said.
Greenhouse said he expects this to be a game-changer for Walmart, much like DSS was in its early days.