Wal-Mart to shrink resources
October 24, 2006,
Teaneck, N.J. – Wal-Mart’s global procurement division is working to rationalize its factory base and will move bigger pieces of business to fewer manufacturing plants.
The division also wants to streamline processes, he said. By way of example, he said, global procurement could create a universal standard in its towel program “so that no matter what country it is produced in, [all global Wal-Mart stores] would have the same basic towel.”
In another shift, global procurement will focus less on doing a set percentage of volume direct in favor of placing direct orders where Wal-Mart can achieve the greatest cost savings, Jackson said.
The 2,000-person global procurement team “is consolidating factory relationships to drive quality and lower costs,” he added.