WalMart’s plans to increase sourcing in the US by $50 billion over 10 years

A news release (http://www.prnewswire.com/news-releases/walmart-to-boost-sourcing-of-us-products-by-50-billion-over-the-next-10-years-186934711.html) describes plans by WalMart to increase US sourcing by $10 billion over 10 years. The steps include longer term purchase agreements for domestic sourcing stability, hosting a manufacturing summit to encourage stakeholders to coordinate including government etc. But the article also claims that currently 67 % of products sold at WalMart are made, sourced or grown in the US – contrary to public perception. The same news release also describes a commitment to hire 100,000 veterans at WalMart over five years with a commitment to hire any honorable discharged veteran applying within 12 months of leaving service. Will decisions by WalMart to source locally following the rules above increase domestic sourcing and job creation ? Will it just encourage suppliers to move to the US or encourage US manufacturers to expand to become suppliers ? Will associated consumer prices have to increase to cover the possibly higher sourcing costs or is the move to US sourcing inevitable given rising Chinese labor costs and a desire to lower carbon footprint at WalMart ?

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About aviyer2010

Professor
This entry was posted in Collaboration, Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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