Wal-Mart with more sourcing of American made products
Wal-Mart is committing itself to increase American sourcing of products it sells – among apparel and textiles – and help veterans find jobs when they terminate active duty and the company is helping part-time associates who want to work full time to achieve that goal
Over the next ten years, Wal-Mart and Sam’s Club will buy an additional USD 50 billion of American products. The plans are to grow U.S. manufacturing on two fronts, namely by increasing what the company is already buying there – in categories like sporting goods, apparel basics, storage products, games and paper products, an by helping to onshore U.S. production in high potential areas like textiles, furniture and higher-end appliances.
CEO Bill Simon spoke at the National Retail Federation’s annual BIG Show in New York (USA) and stated: “At the heart of our national political conversation today is one issue: creating jobs to grow the economy. We are meeting with our suppliers on domestic manufacturing and are making a strong commitment to move this forward”.
There is a popular misconception about Wal-Mart that the majority of products on its shelves are sourced. According to data from its suppliers, items that are made in the States, sourced there, or grown there account for about two-thirds of what the company spends to buy products at Wal-Mart U.S., and the company sees more room to do more.
To achieve this commitment, the company has created a senior team within the company to lead this effort and it will sign longer purchase agreements to give suppliers more certainty. And Simon added: “We can do so much more by working in partnership – as an industry and with governments. I have talked with a number of governors, including the incoming chair of National Governors Association, Oklahoma Governor Mary Fallin, about how governors and retailer and manufacturers can drive this issue together. Governors from both sides of the aisle are enthusiastic about getting their constituents back to work”.
In summer, Wal-Mart will help convene a manufacturing summit for stakeholders to work together and help accelerate these changes.
It is noteworthy to mention that the programme for veteran is underway and supported by the White House First Lady’s team and the Department of Veterans Affairs and the Department of Defence.