Here's How Walmart Is Using Artificial Intelligence to Keep Prices Low The Motley Fool

Major retailers have a lot of power over vendors. A chain like Walmart (NYSE:WMT) can, for example, go to a medium-sized vendor and ask it to cut prices by 2% or lose some of its shelf space. That's typical and it helps keeps prices low for consumers. It's also challenging to keep track of for a company operating on the scale Walmart does. To help with that, the retail giant has reached a deal to pilot technology from Pactum to help it negotiate contracts with some of its vendors. Essentially, Walmart is acknowledging that it's tough, if not impossible, to negotiate the best possible terms with its hundreds of thousands of vendors.