Walmart requiring all suppliers to move to Luminate data service 

Walmart is requiring all of its suppliers to subscribe to its Luminate data service beginning in October. Luminate is Walmart’s newest way to share data with suppliers – data that includes a detailed look into their business.

The Bentonville-based retail giant said last week it will phase out its Decision Support System (DSS) app in the Retail Link portal and will no longer be available as of March 1, 2024. The DSS app is what many suppliers use to track store sales, see inventory at stores and distribution centers, and forecast demand at stores. The system was built on old software and has served the retailer well over the years, according to Jami Dennis, founder of VendorMasters.

The retail giant said Luminate includes a suite of analytic tools that deliver actionable, customer-centric insights to drive better business decisions. Luminate came about through a collaboration between Walmart Data Ventures and Dunnhumby, a third-party marketing research tech firm. Walmart began marketing its paid Luminate subscriptions to suppliers two years ago. But now the retailer is making a free version of the Luminate app available to all suppliers saying it will replace the old DSS system inside Retail Link early next year.

“Investing in innovation ensures that we continue to help our customers save money and live better. One way we are planning to evolve our omnichannel commerce analytics in Fiscal Year 24 is by upgrading all Walmart U.S. suppliers and merchants to Walmart Luminate starting in October,” Walmart noted in the email sent to suppliers last week.

Walmart said suppliers can subscribe to the Walmart Luminate Basic for free or pay for the Charter version that provides more data. The retailer said it is in the process of contacting all suppliers with more information on how to sign up.

“While we acknowledge DSS is part of Walmart’s legacy, we are confident the move from DSS to Walmart Luminate will deliver an enhanced experience. Our suppliers have frequently asked for stable data and more flexibility in how data is organized. Walmart Luminate allows us to use data in ways we haven’t been able to before,” the memo stated.

The timeline for Walmart’s transition is for suppliers to subscribe to Luminate Basic or Charter beginning in October through the end of February. Walmart said invitations for suppliers to subscribe to the free Basic plan have begun and will run through January. Suppliers already subscribing to Luminate’s paid service need not do anything.

Walmart said both Luminate options will allow suppliers to unlock enhanced e-commerce data. The new e-commerce data helps to establish Luminate as the preferred tool that merchants – in collaboration with suppliers – use to make data-driven decisions for line reviews, quick modular changes, item swaps and more, the retailer noted in the memo.

Dennis equated the change to an app update on Apple or an operating system update on Microsoft. She said that given the growth of e-commerce since the pandemic and Walmart’s focus on omnichannel operations, they opted to do the transfer to Luminate. She said the old system did not show e-commerce sales in a consolidated report, and it was time for an upgrade.

“I understand the free version will give suppliers a complete look at their sales regardless of where they occurred, which is necessary for inventory management today given Walmart is fulfilling so many orders from stores,” she added.

Charles Greathouse of High Impact Analytics said he was in on the development of Luminate, and it is a major upgrade. He said the data from Luminate is better but different.

“If you want to understand how your data is performing across all channels, this is the currency. This is what the merchants (buyers) are looking at,” Greenhouse noted in a recent podcast on social media.

Insiders said Luminate is also likely a more secure network than the older system that has allowed bots and so many third-party players to access the data. Dennis applauded Walmart for the upgrade, noting that there will be a slight learning curve, but she expects the free version, at a minimum, will be a time-saver for suppliers and give a more complete look at their business. She said suppliers need to embrace the changes that come with omnichannel sales.

“Walmart has always been great at sharing data with suppliers because it’s good for both sides of the transactions. Retail Link is still the operating system but has some new apps that should enhance the visibility of all sales under one report. That seems like a win to me,” she said.

Greenhouse said he expects it to be a game changer for Walmart, much the way DSS was in the early days.