Inside the Multi-Billion Dollar Inventory Game at Walmart

Episode 6 of The Operator's Manual goes inside Walmart's inventory management system — a logistical machine that moves over $600 billion in goods annually. We break down how Walmart slashed its inventory holding days from 45 to under 30 in five years, freeing up billions in cash. Lucas explains the 'inventory velocity' metric, the role of its proprietary Retail Link software, and how a single inventory mistake in 2022 cost the company $3 billion in markdowns. Luna pushes on the trade-offs: lean inventory versus stockout risks during supply chain shocks. We also compare Walmart's approach to its rival Target and to newer players like Amazon. Specific numbers: how a one-day reduction in inventory holding generates roughly $400 million in freed cash. This is the playbook behind the world's largest retailer's operational edge. #Walmart #InventoryManagement #SupplyChain #Retail #BusinessExecution #CashFlow #Logistics #RetailLink #InventoryVelocity #LeanInventory #Target #Amazon #Markdowns #Stockouts #TheOperatorsManual #FexingoBusiness #BusinessPodcast #Operations Keep every episode free: buymeacoffee.com/fexingo