Wal-Mart revamps sourcing structure, contracts with Li & Fung
Retailer will consolidate sourcing
-- Home Textiles Today, 1/28/2010 7:22:00 AM
Bentonville, Ark. – Wal-Mart Stores Inc. announced this morning that it has signed an agreement with global sourcing organization Li & Fung that will help it “consolidate a portion of its sourcing portfolio.”
Wal-Mart directly sources more than $100 billion in private brand merchandise annually. Li & Fung, which will form a new company to handle the Wal-Mart business, will source about $2 billion annually, although the contract does not include any volume or shipment commitments, according to the retailer.
Wal-Mart will create new Global Merchandising Centers to realign its sourcing structure. In addition, Ed Kolodzieski, president and ceo of Walmart Japan Holdings G.K. and Seiyu, has been promoted to executive vp in charge of Walmart's Global Sourcing. He will report to Walmart vice chairman Eduardo Castro-Wright.
On a global basis, the company plans to increase direct sourcing for its private brands.
"Our new strategy and structure should drive significant savings across the supply chain," Castro-Wright said.
Well said Steve. Though, I am not an American myself but have lived almost 9 yrs in the US and had education also over there.
Big corporations in America always have a funny way of making a fool of the American people....forget American people only...I guess the whole world.
Anyways...this thread will go somewhere real far from the subject matter above....wish all the best for this new move made by the two giants of the industry.
Faisal - 2010-01-29 00:54:00 EST
Big corporations in America always have a funny way of making a fool of the American people....forget American people only...I guess the whole world.
Anyways...this thread will go somewhere real far from the subject matter above....wish all the best for this new move made by the two giants of the industry.
Walmart may be getting the suze of our government and as out of touch or just dosen't care but for profit.
Alvin L. Geddings - 2010-01-28 11:39:00 EST
Buy America. What a game Wal-Mart plays on the consumer.They continue to treat US suppliers as the enemy while pretending otherwise.
In 1991 when the Gulf War started, Wal-Mart wanted to buy 3000 dozen white beach towels with the US Flag printed on them. I was told to get them a price ASAP. I called the mills and got a low quote from Cannon. The answer was, they want Chinese blanks to save money. So, they bought those towels with a US flag at a time of War with Made in China labels. No shame then or now.
Steve Harris - 2010-01-28 11:22:00 EST
In 1991 when the Gulf War started, Wal-Mart wanted to buy 3000 dozen white beach towels with the US Flag printed on them. I was told to get them a price ASAP. I called the mills and got a low quote from Cannon. The answer was, they want Chinese blanks to save money. So, they bought those towels with a US flag at a time of War with Made in China labels. No shame then or now.
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Wal-Mart, Li & Fung Sign Sourcing Pact
Feb 8, 2010
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