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Are you ready to negotiate your trade terms with #AI? 🤖💰

Bloomberg has just released a pretty interesting deep dive into the specifics of how Walmart is automating their long-tail supplier management.

🚨 But this is a bigger trend than it may seem

Next to Walmart, also #Amazon has long adopted AI at scale in its negotiations with 1P suppliers.

With tens of thousands of vendors to manage, brands that are too small to qualify for a dedicated account manager are managed through a mass management approach, also known as Vendor Success Programme (VSP).

In this programme, brands negotiate against an algorithm rather than with a dedicated buyer on the other side of the negotiating table.

This paradigm shift requires a completely new set of skills and capabilities from suppliers, as the human element of managing their accounts and margins is removed, one negotiation at a time.

The most interesting part?

» Three out of four Walmart suppliers say they preferred negotiating with the AI over a human. «

Thanks to Bloomberg for including my two cents in the story below!