Wal-Mart Greens Their Supply Chain
Wal-Mart is an enormous chain of stores that allows a person to buy virtually anything under the sun at low prices. It is no wonder that this position in the American marketplace gives Wal-Mart a tremendous ability to influence the manufacturers of their products.
Wal-Mart has started to use the quantity of products that they purchase as a bargaining chip to demand that manufacturers implement conservation and sustainability strategies in their factories. This tactic is beginning to work because these manufacturers cannot afford to lose Wal-Mart as a customer. Because going green often involves large, up-front costs, it makes the transition easier to swallow when those costs are compared to the huge orders Wal-Mart makes with these companies.
If you are running a toothpaste distribution company, it lowers the cost of business to sell half your monthly inventory to Wal-Mart, even if they do force you to install CFL light bulbs on your assembly lines and use cleaner burning biodiesel fuels in your shipping fleet.
Do the green initiatives make you feel better about Wal-Mart? Feedback on this issue in our blog comments section.