How Acosta helped Hostess maximize allotted space and inventory in Walmart.

HOW WE DID IT

Hostess, a long-term partner of Acosta, faced the challenge of maximizing their allotted space and inventory in Walmart stores to drive retail compliance and sales. Acosta’s Supply Chain team identified a gap between store on-hand inventory levels and the feature presentation and shelf capacity. 

Acosta’s team created a two-pronged solution utilizing proprietary technology and algorithms to either script all available Walmart Distribution Center (DC) inventory to store or hold 20% of inventory in the DC. The percentage to hold in DC is interchangeable and can be adjusted based on client needs or requirements.  

In October 2022, Acosta analyzed 3,097 stores and five items, providing Hostess $2.6M in inventory influence recommendations. Nearly 100% of Hostess features were reviewed in 2022, resulting in over $15M in DC push order recommendations and over $2M in Walmart-approved inventory pushes from DC to store. 

Acosta’s supply chain thought leadership and downstream inventory insights helped Hostess maximize their allotted space and inventory in Walmart stores, increasing retail merchandising effectiveness, overall efficiency, and sales growth. The custom solution implemented for Hostess was successful and scalable for other clients, showcasing Acosta’s ability to provide strategic solutions for our partners.