Wal-Mart And The Socially Responsible Supply Chain

Last month in China, Wal-Mart told a group of over a 1000 vendors and government officials of their plans for a more environmentally and socially responsible global supply chain. The company gave vendors a number of requirements, including timelines, that they will have to comply with if they want to continue to be a Wal-Mart vendor. These include compliance with China’s environmental laws and regulations and improved transparency of ownership, which includes each vendor to provide the name and location of every factory they use to make the products they sell. Wal-Mart will also require vendors to improve energy efficiency and consume fewer natural resources.

In addition to these requirements, Wal-Mart will require 100% defective-free merchandise from Chinese suppliers by 2012. American consumers have seen problems with products from China, including toys with lead paint and melamine-tainted milk. Wal-Mart hope to alleviate this issue in the next three years, thereby boosting consumer confidence, whilst reducing supply chain costs and improving their image as a world leader in environmentally responsible retailing.