Walmart to cut supply chain costs by buying directly from suppliers

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Walmart to cut supply chain costs by buying directly from suppliers

January 04, 2010
The Financial Times reports Walmart plans to cut billions of dollars of supply chain costs by combining its store purchasing across borders and to move towards more global sourcing.

The effort forms part of plans by the world's largest retailer to increase the proportion of goods that it buys directly from manufacturers, rather than by third-party procurement companies or suppliers.

Walmart plans to expand initial combined purchasing of fresh fruit and vegetables for its stores in the U.S., Canada and Mexico. Walmart expects to expand the program through other categories, including seafood, frozen food and dry packaged groceries.
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