07/20/2015
WSJ.com: Wal-Mart Seeking More Detailed Product Data From Its Suppliers
http://blogs.wsj.com/cio/2015/07/17/wal-mart-seeking-more-detailed-product-data-from-its-suppliers/
Wal-Mart Stores Inc. is giving its suppliers a way to send more detailed product information to the company as more shoppers turn to digital channels. The retailer hopes giving companies a standard way to share data — and more of it — will give it a richer database that can be used to improve customer experience, hone its product selection and become more competitive on pricing.
Late last month the retailer said it is piloting the Product Content Collection System, a tool that will make it easier for suppliers to send their product catalogs straight to Wal-Mart. The company is encouraging both existing and potential suppliers to submit product data for every item in their catalog, even the ones Wal-Mart doesn’t sell. The PCCS will also facilitate the collection of more variable data formats such as video.
“For any retailer in today’s day and age, high quality product data is a must,” said Ram Rampalli, global head of content acquisition at Wal-Mart’s global e-commerce group. “Once you get that you can do whatever you want.”
It’s one way Wal-Mart is changing to compete with online rivals like Amazon.com Inc., as well as its brick and mortar competitors. High quality data that comes straight from the supplier, as well as a standard way to classify items across the supplier network, can help Wal-Mart more easily perform analytics and manage the growing dataset. Reliable product information can also improve the experience for customers who shop online.
Additional product details could assist Wal-Mart when deciding which products to stock, Mr. Rampalli said. A quality database containing information about 1,000 types of mint toothpaste, for example, could be mined alongside other data to figure out exactly which three or four tubes to sell.
Better product descriptions also can help Wal-Mart improve its price-matching algorithms. Say a competitor is selling a pair of red running shoes for $199 while Wal-Mart is selling a similar item for $239. A richer database could match the attributes of each product and help Wal-Mart see whether the two pairs of shoes are actually the same, which would influence pricing decisions. It can also help prevent duplicate products from showing up on Wal-Mart’s site.
Higher quality data also could lead to more targeted recommendations for customers. Movie trailers, lists of awards won and other details about each film Wal-Mart carries could help the retailer come up with an accurate, curated list of movies a shopper could purchase and watch that night.
The PCCS initiative follows years of work with GS1, a standards organization that helps companies share synchronized and standardized product data across their supply chains. Many companies already use this network, and Mr. Rampalli said Wal-Mart would continue to support it.
Collaborating with Wal-Mart, eBay Inc. and others, GS1 in May released the Simple Product Listing Standard, which its website calls “a search-friendly language that web and mobile applications can easily understand.” That should make it easier to integrate with e-commerce sites and mobile apps.
So far more than 30 suppliers have submitted full or partial catalogs through PCCS, Mr. Rampalli said, and the number of product images being submitted has increased significantly. The company is now building tools and systems to help integrate that new data into Wal-Mart’s websites and apps.
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The retailer is piloting the Product Content Collection System, a tool that will make it easier for suppliers to send their product catalogs straight to the company. Wal-Mart hopes a standard way to share data, and more of it, will help improve customer experience, boost pricing competitiveness and…
