Wal-Mart plans on capturing its suppliers' supply chains!
Saturday, June 5, 2010 at 12:04AM
Thomas P.M. Barnett in Citation Post, supply chains

Bloomberg story by way of Thomas Frazel.

Gist:

Wal-Mart Stores Inc., the world's largest retailer, is seeking to take over U.S. transportation services from suppliers in an effort to reduce the cost of hauling goods.

The company is contacting all manufacturers that provide products to its more than 4,000 U.S. stores and Sam's Club membership warehouse clubs, said Kelly Abney, Wal-Mart's vice president of corporate transportation in charge of the project. The goal is to take over deliveries in instances where Wal-Mart can do the same job for less and use those savings to reduce prices in stores, he said.

I referenced this in last week's WPR column on the myth of "deglobalization."

This is some serious ambition toward tightening up supply chains.  Brutal to the manufacturers, who now lose economies of scale in their remaining shipments to other retailers--unless they follow suit.

Article originally appeared on Thomas P.M. Barnett (https://thomaspmbarnett.com/).
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