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March 2, 2026

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Can Vendors Be Doing More To Reduce In-Store Out-Of-Stocks?

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Walmart introduced Scintilla In-Store, an application that gives supplier field representatives working across Walmart stores near real-time visibility into shelf inventory and store execution.

The application, the newest addition to Walmart’s Scintilla portfolio, combines tools, “real-time” store data, performance metrics, and supplier-assigned tasks into a single interface to help the vendor field reps support their categories within Walmart stores.

“For example, by leveraging the same item and modular information used by store associates, field representatives can quickly identify which items may be running low and need replenishment,” Walmart states in a press release. “They can also help ensure that items shifted on the shelf during busy shopping periods are accurately reflected in Walmart’s inventory systems – addressing common challenges in dynamic store environments. With this information at their fingertips, field representatives can resolve issues in real time, helping to keep shelves stocked and customers satisfied.”

Formerly known as Volt, Scintilla In-Store builds on the innovation of Volt Systems, acquired by Walmart in 2022

Pamela Stewart, North America chief customer officer – retail at The Coca-Cola Company, said in Walmart’s press release, “The enhanced app experience provides real-time inventory visibility and equips our representatives with advanced tools, enabling them to work more efficiently and make data-driven decisions during every store visit.”

Inventory out-of-stocks are often blamed on inaccurate forecasting, slow replenishment and manufacturing delays, but also poor communication between retailers and suppliers.

“The retail industry is highly competitive, and this makes retailers cautious about sharing data with suppliers, partners and other trusted parties,” according to 2023 research from Coresight Research commissioned by Skypad, the retail analytics solution provider. “Moreover, retailers and buyers have historically been adequately served by transactional relationships and are typically resistant to change.”

Coresight’s report also noted that “legacy tools and a reluctance to modernize” has impeded retailer-supplier data sharing.

James Carlson, mid-market consultant and team leader at research firm Circana, in a blog entry advised SMB (small to medium-sized business) vendors to take advantage of shared insights into retailers’ promotional cadence and execution windows.

“An SMB can use inventory and sales data to prioritize high-value SKUs and prove its importance to the retailer’s category sales,” wrote Carlson. “A smaller business can also approach retail partners with insights that help them, such as identifying stores with chronic out-of-stocks on a certain product.” 

In a penned article for Fortune, Are Traasdahl, CEO and founder of Crisp, a provider of retail data solutions, said he sees AI agents helping retailers and suppliers better communicate and collaborate in addressing shared goals ranging from reducing out-of-stock rates to optimizing pricing and promotion, and improving online media spend effectiveness. Traasdahl wrote, “These autonomous agents can share insights (without exposing sensitive raw data), adapt to changing conditions in real time, and offer a path forward for retailers and their consumer packaged goods (CPG) partners to achieve immediate and long-term operational goals.”

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Discussion Questions

Discussion questions: What do you think of Walmart’s Scintilla In-Store app and the potential benefits of providing vendor field reps with real-time visibility into shelf inventory?

Do you see vendors increasingly playing a larger role in reducing in-store out-of-stocks?

Poll

8 Comments
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Neil Saunders

I am not sure that vendors can remedy all out-of-stocks themselves as much depends on a retailer’s own systems and buying processes. However, arming vendors with proper insights at store level is helpful as they can flag potential issues and work with retailers to remedy them. What’s particularly significant here is that the issues are not just about stock levels, it’s also about where stock is within a store and whether it is visible to the customer. It’s a kind of quality control check. Ultimately, this helps the vendor – who wants availability – and it helps Walmart. So it is a win-win.

Last edited 16 days ago by Neil Saunders
Craig Sundstrom
Craig Sundstrom

The phrasing of ths is …interesting: am I to believe, from the way the quesion was asked, that WalMart feels the primary reponsiblity for keeping store shelves full should fall on the vendors ?? Or is WM just trying to shift (yet another) cost onto them??
And here all these years we’ve been blaming Target , et al. for their depleted shelves…they’ll be relieved to know it’s not really their fault.

Last edited 16 days ago by Craig Sundstrom
Scott Benedict
Scott Benedict

Walmart’s Scintilla In-Store app is a meaningful step forward in closing one of retail’s most persistent execution gaps—what the system says is on-hand versus what’s actually on the shelf. By giving vendor field reps near real-time visibility into inventory, modular data, and store-level execution tasks, Walmart is effectively connecting insight to action at the shelf level.  This is exactly where many out-of-stocks originate—not from forecasting alone, but from breakdowns in communication, replenishment timing, and in-store execution. Enabling suppliers to see and act on these issues in real time is a smart use of technology that should improve on-shelf availability, reduce “phantom inventory,” and ultimately drive sales for both the retailer and the brand.

That said, reducing out-of-stocks remains a shared responsibility. Retailers own the core systems—forecasting, replenishment, labor allocation—while suppliers own product flow, packaging, and increasingly, field execution. Tools like Scintilla In-Store don’t shift responsibility as much as they create alignment, giving both parties access to the same version of the truth and the ability to act on it. In that sense, this is less about vendors “doing more” and more about both sides doing better together, supported by better data and workflows.

Looking ahead, it is very likely that vendors will play a larger role in store-level execution, particularly as retailers continue to open up data ecosystems and embed AI-driven prioritization into these tools. But there are limits—vendors can identify and help resolve issues, but they cannot fully compensate for systemic gaps in store labor or replenishment processes. The real opportunity is collaborative: when retailers and suppliers operate from shared data, aligned incentives, and real-time visibility, out-of-stocks become far more manageable. Scintilla is a strong step in that direction.

Tanya Thorson
Tanya Thorson

Walmart is doing something smart here. Real-time visibility at the shelf level turns vendors from reporters into operators. When field reps can see inventory gaps in the moment and act, you reduce lag between signal and fix. That protects sales and strengthens the customer experience where it actually happens.
Yes, I do see vendors playing a larger role in reducing out of stocks. They are closer to their own demand signals and often more agile in the aisle. The unlock is shared incentives and shared data. When retailer and supplier align around sell through, margin, and in stock performance, collaboration becomes a growth lever.

Gene Detroyer

Back in my day,70s, the vendors were actually required to keep the shelves stocked. It was likely a vendor decision, but supermarkets were visited at least once a week, and the shelves were checked. The backroom was checked, and the “retail salesman” was responsible for making the shelves full and in perfect condition before he left the store.

Gary Sankary
Gary Sankary

Vendors absolutely have a larger role to play in reducing out-of-stocks —up to a point. 
Walmart’s Scintilla In-Store makes a ton of sense because it closes the loop at the shelf level, where all inventory execution succeeds or fails. Vendor field reps have had visibility into store inventory and execution (see scan-based trading, endcaps, and promotional space/slotting for the reason). Providing that data in real time potentially is a game-changer. It removes the lag between a problem appearing and someone acting on it. That said, tools like this only work if vendors are also doing the harder structural work: building flexibility into their supply chains to absorb demand volatility, not just optimizing for steady-state efficiency. Accurate forecasts and reliable replenishment are table stakes. The real differentiator is how quickly a vendor can reallocate inventory, pivot production, and surge support when demand signals spike or shift unexpectedly.
The Coresight finding about retailer reluctance to share data is the elephant in the room. Scintilla works because Walmart is willing to open the door. Many retailers aren’t — and that limits how much vendors can do, regardless of their own capabilities. AI-assisted collaboration could help bridge that gap without requiring retailers to expose raw competitive data.
Bottom line: vendors need to invest ahead of the problem, not just respond to it. Reactive reallocation is better than nothing, but proactive supply chain flexibility is what actually moves the OOS needle.

Jeff Sward

Vendors absolutely can play a partnership role in managing in-store inventory. And not because they are doing to retailers’ job for them, but because it is in their own self-interest. I left retail to run a wholesale brand and very quickly found out what kind of job many retailers were doing in running their business…at the store-by-store level. One of the keys to success was our team of field coordinators. This was long before anything remotely tech or digital. The field coordinators spent 100% of their time rotating between branch stores. It was all about on-floor inventory maintenance. Not just what was in stock and out of stock, but what was selling and not selling and WHY? So, in my mind, this conversation pretty quickly elevates into assortment planning and OTB management. It’s not just counting inventory. If something is out of stock, it is immediately about the WHY? Is it sitting in the stock room or selling out so fast the shelf stock model has to be adjusted? One is a staffing problem, and the other is a planning and OTB problem…or the vendor themselves can’t keep up, or…… Kind of important to know which it is.

Brian Cluster

Walmart deserves respect for continuously innovating and finding new ways to make their supply chain efficient. AI agents hopefully will be used by the entire CPG ecosystem to make more timely and better decisions.

However, there are two considerations that the article did not cover. First, if a supplier has a very high OTIF track record, what type of responsibility would they have to do any more from an in-stock rate? Second, an analysis of direct vs. indirect supply is another consideration because if brands are providing products to the wholesaler on time and meeting requirements then the responsibility for out of stocks would likely be less focused on the supplier. Lots to cover and it may require a follow-up article.

8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Neil Saunders

I am not sure that vendors can remedy all out-of-stocks themselves as much depends on a retailer’s own systems and buying processes. However, arming vendors with proper insights at store level is helpful as they can flag potential issues and work with retailers to remedy them. What’s particularly significant here is that the issues are not just about stock levels, it’s also about where stock is within a store and whether it is visible to the customer. It’s a kind of quality control check. Ultimately, this helps the vendor – who wants availability – and it helps Walmart. So it is a win-win.

Last edited 16 days ago by Neil Saunders
Craig Sundstrom
Craig Sundstrom

The phrasing of ths is …interesting: am I to believe, from the way the quesion was asked, that WalMart feels the primary reponsiblity for keeping store shelves full should fall on the vendors ?? Or is WM just trying to shift (yet another) cost onto them??
And here all these years we’ve been blaming Target , et al. for their depleted shelves…they’ll be relieved to know it’s not really their fault.

Last edited 16 days ago by Craig Sundstrom
Scott Benedict
Scott Benedict

Walmart’s Scintilla In-Store app is a meaningful step forward in closing one of retail’s most persistent execution gaps—what the system says is on-hand versus what’s actually on the shelf. By giving vendor field reps near real-time visibility into inventory, modular data, and store-level execution tasks, Walmart is effectively connecting insight to action at the shelf level.  This is exactly where many out-of-stocks originate—not from forecasting alone, but from breakdowns in communication, replenishment timing, and in-store execution. Enabling suppliers to see and act on these issues in real time is a smart use of technology that should improve on-shelf availability, reduce “phantom inventory,” and ultimately drive sales for both the retailer and the brand.

That said, reducing out-of-stocks remains a shared responsibility. Retailers own the core systems—forecasting, replenishment, labor allocation—while suppliers own product flow, packaging, and increasingly, field execution. Tools like Scintilla In-Store don’t shift responsibility as much as they create alignment, giving both parties access to the same version of the truth and the ability to act on it. In that sense, this is less about vendors “doing more” and more about both sides doing better together, supported by better data and workflows.

Looking ahead, it is very likely that vendors will play a larger role in store-level execution, particularly as retailers continue to open up data ecosystems and embed AI-driven prioritization into these tools. But there are limits—vendors can identify and help resolve issues, but they cannot fully compensate for systemic gaps in store labor or replenishment processes. The real opportunity is collaborative: when retailers and suppliers operate from shared data, aligned incentives, and real-time visibility, out-of-stocks become far more manageable. Scintilla is a strong step in that direction.

Tanya Thorson
Tanya Thorson

Walmart is doing something smart here. Real-time visibility at the shelf level turns vendors from reporters into operators. When field reps can see inventory gaps in the moment and act, you reduce lag between signal and fix. That protects sales and strengthens the customer experience where it actually happens.
Yes, I do see vendors playing a larger role in reducing out of stocks. They are closer to their own demand signals and often more agile in the aisle. The unlock is shared incentives and shared data. When retailer and supplier align around sell through, margin, and in stock performance, collaboration becomes a growth lever.

Gene Detroyer

Back in my day,70s, the vendors were actually required to keep the shelves stocked. It was likely a vendor decision, but supermarkets were visited at least once a week, and the shelves were checked. The backroom was checked, and the “retail salesman” was responsible for making the shelves full and in perfect condition before he left the store.

Gary Sankary
Gary Sankary

Vendors absolutely have a larger role to play in reducing out-of-stocks —up to a point. 
Walmart’s Scintilla In-Store makes a ton of sense because it closes the loop at the shelf level, where all inventory execution succeeds or fails. Vendor field reps have had visibility into store inventory and execution (see scan-based trading, endcaps, and promotional space/slotting for the reason). Providing that data in real time potentially is a game-changer. It removes the lag between a problem appearing and someone acting on it. That said, tools like this only work if vendors are also doing the harder structural work: building flexibility into their supply chains to absorb demand volatility, not just optimizing for steady-state efficiency. Accurate forecasts and reliable replenishment are table stakes. The real differentiator is how quickly a vendor can reallocate inventory, pivot production, and surge support when demand signals spike or shift unexpectedly.
The Coresight finding about retailer reluctance to share data is the elephant in the room. Scintilla works because Walmart is willing to open the door. Many retailers aren’t — and that limits how much vendors can do, regardless of their own capabilities. AI-assisted collaboration could help bridge that gap without requiring retailers to expose raw competitive data.
Bottom line: vendors need to invest ahead of the problem, not just respond to it. Reactive reallocation is better than nothing, but proactive supply chain flexibility is what actually moves the OOS needle.

Jeff Sward

Vendors absolutely can play a partnership role in managing in-store inventory. And not because they are doing to retailers’ job for them, but because it is in their own self-interest. I left retail to run a wholesale brand and very quickly found out what kind of job many retailers were doing in running their business…at the store-by-store level. One of the keys to success was our team of field coordinators. This was long before anything remotely tech or digital. The field coordinators spent 100% of their time rotating between branch stores. It was all about on-floor inventory maintenance. Not just what was in stock and out of stock, but what was selling and not selling and WHY? So, in my mind, this conversation pretty quickly elevates into assortment planning and OTB management. It’s not just counting inventory. If something is out of stock, it is immediately about the WHY? Is it sitting in the stock room or selling out so fast the shelf stock model has to be adjusted? One is a staffing problem, and the other is a planning and OTB problem…or the vendor themselves can’t keep up, or…… Kind of important to know which it is.

Brian Cluster

Walmart deserves respect for continuously innovating and finding new ways to make their supply chain efficient. AI agents hopefully will be used by the entire CPG ecosystem to make more timely and better decisions.

However, there are two considerations that the article did not cover. First, if a supplier has a very high OTIF track record, what type of responsibility would they have to do any more from an in-stock rate? Second, an analysis of direct vs. indirect supply is another consideration because if brands are providing products to the wholesaler on time and meeting requirements then the responsibility for out of stocks would likely be less focused on the supplier. Lots to cover and it may require a follow-up article.

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