Wal-Mart revamps sourcing structure, contracts with Li & Fung
Staff Staff -- Home Textiles Today, January 28, 2010
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.
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