• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » How Much More 'Blood' Can Wal-Mart Squeeze from Its Supplier Base?

How Much More 'Blood' Can Wal-Mart Squeeze from Its Supplier Base?

October 18, 2012
CFO

Consider, for example, Wal-Mart's merchandise suppliers. For most, the value of the relationship lies in the volume of sales, not the profit margin. The retail giant does not rest in exerting downward pressure on supplier prices. Low-margin business can be sustainable, but it leaves little room for any additional costs that may crop up, as happened with the Sustainability Scorecard Wal-Mart introduced in 2009.

The program set out clear instructions for adhering to packaging requirements for Wal-Mart suppliers. Many of them were forced to change product configurations and packaging designs to meet the retail giant's mandates.

Now consider Wal-Mart's plans to use its massive fleet of some 6,500 trucks to take over the transportation of all inbound materials. The company introduced the concepts at the heart of its plan back in 2010; subsequent delays in launching the program have been a result of supplier pushback.

Is Wal-Mart's supply-chain strategy sustainable? The company will discover that a cliché, in this case "you can't squeeze blood from a stone," is a cliché because it's true.

Read Full Article


Keywords: retail supply chain, supply chain management, Wal-Mart relations with suppliers, Wal-Mart supply chain optimization

RELATED CONTENT

RELATED VIDEOS

Technology Business Strategy Alignment Global Supply Chain Management HR & Labor Management Consumer Packaged Goods Pharmaceutical/Biotech Retail
KEYWORDS Business Strategy Alignment consumer packaged goods Global Supply Chain Management HR & Labor Management Pharmaceutical/Biotech Retail retail supply chain Supply Chain Analysis & Consulting Supply Chain Management Technology Wal-Mart relations with suppliers Wal-Mart supply chain optimization
  • Related Articles

    This Supplier Says It Benefits from Wal-Mart's RFID Mandate

    In Urban Areas, Wal-Mart Customers Can Retrieve Purchases from FedEx Stores

    How Much Will Carriers Lose Under Walmart's Plan to Take More Control of Its Transportation?

CFO

U.S. Spotlights Bribery of Foreign Firms as Well as Domestic

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: U.S. Firms in China See Growth; European Commission Rips Vaccine Critics

    Coronavirus
  • China

    China’s Tech Revolution Aims to Cut Dependence on West

    Technology
  • One Apus Container Ship

    Containers Are Falling Into the Sea. What’s Going On?

    Logistics
  • Walmart

    Walmart Embraces a Local Fulfillment Model for Grocery

    Logistics
  • IBM

    Tracing the Supply-Chain Journey of Green Products With Blockchain

    Data Management (Big Data/IoT/Blockchain)

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
GreyOrange Honeywell Intelligrated Infor
Inmar Kibo Commerce Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Paccurate
Ports America Purolator QAD Precision
Red Classic Riskmethods Snapfulfil
TGW Systems Tradepoint Atlantic Transportation Insights
Watson Land Company Westfalia Technologies Workjam
Yang Ming    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing