Blog: Leonie BarrieWal-Mart’s sustainability pledge

Leonie Barrie | 3 February 2010

While most industry observers have been unanimous in their praise of Wal-Mart's mega sourcing deal with Li & Fung, now that its full impact has had time to settle in there are some out there who are starting to question the retailer's true motivations. 

One of the biggest elephants in the room is where it leaves Wal-Mart’s recent pledges on sustainability. Signing a $2bn deal with Li & Fung seems to be taking a big step away from plans rolled out last July to get its suppliers to complete a Sustainability Index calculating the full environmental costs of making every product on the retailer's shelves. With Li & Fung bridging the gap between the factories and the retailer, it will be interesting to see how successful its efforts at transparency really are.

The outsourcing measure also seems to be at odds with Wal-Mart’s wider goals to increase the proportion of goods it buys directly from manufacturers, rather than through third-party procurement companies or suppliers. In January the retailer estimated that shifting to direct purchasing could reduce costs by 5% to 15% across the supply chain within five years.


BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

BLOG

Trump trade policies and China tensions top concerns

This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...

BLOG

Happy New Year – and a first look at 2017

Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....

BLOG

New re:source to help unravel sourcing decisions

Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...

just-style homepage



Forgot your password?