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Walmart Squeezes Even Harder

Walmart's business model is based on leveraging its size to reduce its costs. They squeeze manufacturers hard, often forcing these manufacturer to cut costs to earn any profit at all. Up until now, the only thing standing between these companies and Walmart was, in some cases, a 3rd company who bought the products and got them to Walmart's distribution centers. Now, Walmart is looking to eliminate that barrier. They have announced plans to begin buying more products directly from the manufacturer. Walmart has also established four global merchandising centers.

For a company that has spent a significant amount of time and energy recently touting their efforts to buy more local products, this sure doesn't sound like going local. In fact, this highlights a major environmental problem with Walmart: they produce vast quantities of products that are then shipping half way around the world.

Check out the full article over at the Financial Times.

Posted by Taylor - January 5, 2010 03:07 PM - In The News

Comments

let get the living wage Law Bill to pass by give Wal Mart Employee and Sam's Club Employee a living waged with affordable Health Care right of away and right now please for the UFCW Union Worker for Wal Mart Cashier and Stock Person and Courtesy Associate Employee and Sam's Club Cashier and Meat Cutter@Meat Wripper and Cart Attendance Employee and for UAW Union Worker for Wal Mart Tire@Lube Express Employee and Sam's Club Tire@Car Battery Installment Employee and Teamster Union Worker for Wal Mart Truck Driver Employee and Sam's Club Forklift Driver Employee without close down all the Wal Mart Store and Sam's Wholesale Club and let get the Wal Mart and Sam's Club price go higher because why Former Lee H Scott was making too much waged then Wal Mart Worker and Sam's Club Worker and Lee H Scott didn't provide living waged with affordable Health Care to Wal Mart and Sam's Club Worker

Posted by Tom P Noonan - January 5, 2010 06:50 PM

That's called "eliminating the middle man" and it's a tactic used to cut costs by increasing efficiency. This blog just adds to the perception that "efficiency" is a dirty word in the world of organized labor.

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