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>Apparently GRind Blaster also referred to this article- >Global Supply Chain News: Wal-Mart Toughens Up Asian >Suppliers' Requirements, Sets Path for “Zero Defects” >Product Supply Chain >http://www.scdigest.com/assets/On_Target/08-11-18-5.php >?cid=2087 > >Since GRound Bladder asked about my next accusations- > >Tracking the origin of every part of every product is >remotely possible, but may not be practical because of >the expense of negotiating the mazes of corporations. >Even something simple like clothing is made of threads >that are made of fibers that are either grown in >plants, on animals or manufactured. The threads are >woven into fabrics, which are cut, then sewn & >packaged. Each of these steps could be done in >different places. Did you ever see statements like >“Assembled in Elbonia” (or wherever) & components are >made somewhere else? Where did the raw materials come >from? > >Some identical products (same specifications) are >sourced/manufactured in more than 1 country. >Manufacturing contracts are often awarded to the >lowest bidders. When a lower bid comes in later, >production is eventually shifted to the latest lowest >bidder. > >3rd world nations tend to be unstable. A factory—& all >inventory produced & stored there—can bombed/burned in >a revolution. A new government may confiscate (steal) >it. Storms can demolish factories & sink ships. >Workers may go on strike. Diseases may wipe out >trained workers. > >When a firm wants to be sure its supply will be >uninterrupted, it’ll have products made in multiple >locations. > >So, Walmart requires suppliers to divulge where the >products are made. But who will verify the >authenticity? > >It’s almost as ridiculous as Rodney Dangerfield saying >when he was fat & had his shoes shined, he “had to >take to take the guy’s word for it.” > >Let’s try a hypothetical case with a fictional >character. Juan Valdez is a coffee bean picker for the >National Federation of Coffee Growers of Colombia. We >have a ton of beans & we want him to verify if he >picked them. How could he really be sure which beans >he handled? Who would corroborate his story? Should we >ask his donkey for verification? Give me a break! > >A 9-year-old, who slaved 18 hours per day & was >whipped every time he stopped for a drink of water, >could’ve picked those beans. > >Walmart Supercenters get at least 1 trailer-full of >inventory everyday. These trailers are about 53 feet >long. It takes a crew of 5 people a few hours to >unload those. (I’ve been there, done that, so I know.) > > >Walmart’s “Fact Sheets” are available at >http://walmartstores.com/FactsNews/FactSheets/ >According to Walmart’s Logistics_Fact_Sheet.pdf – “A >regional distribution center can have five miles of >conveyor belts, which can move hundreds of thousands >of cases through the center each day.” > >According to Walmart’s Merchandising_Fact_Sheet.pdf – >“To ensure we have the products on our shelves that >meet the needs of our diverse customers and >communities, we source from companies in more than 70 >countries worldwide, including nearly 61,000 U.S. >businesses -- large and small.” >“We are also going to great lengths to understand the >wants and needs of women and of our more affluent >customers. That is what our new Plano, Texas store is >all about. Basically, it is a merchandise lab. We have >over 3,000 items that are unique to this store, and it >is doing very well. In just our first month of >business, we were more than 40% percent ahead of where >we expected to be.” > >Even with sophisticated software & powerful computers, >there are millions of bits of data. Computers can’t >determine if a supplier is compliant & determine what >to do when they’re not cooperating. If it’s done at >all, people have to do it & people expect to be paid. >Lee Scott brags about Walmart paying more $10 per hour >for entry-level store jobs. Data analysis, compliance >checking & enforcement aren’t entry-level jobs. >Measuring pollution & its effects requires scientists. >Walmart needs to have translators working full-time. >Inspectors & supervisors would end up traveling a lot, >& somebody would end up paying for their lodging. >Scott claims there’ll be “Greater transparency and >ownership”. Walmart is more secretive than the >Communist Chinese government. > >“Wal-Mart is taking a number of steps to further >strengthen and enforce supplier compliance with >environmental and social standards, including the >creation of a new supplier agreement that will require >factories to certify compliance with laws and >regulations where they operate as well as rigorous >social and environmental standards.” >Really? Who will pay all of those lawyers? > >If Walmart really did definitively track each >material/component of each product, this initiative >would be expensive. If Walmart did it with its funds, >its profits would be lower &/or it’d have to raise its >prices. I doubt it’d lower its profits to do this. >Raising its prices would make it easier for >competitors to match. > >But Walmart pushes many expenses onto its suppliers. I >read the press release & it seems Walmart’s suppliers >will be responsible for tracking production & getting >their certification. So, suppliers, who may be >violating Walmart’s “standards”, are required to >report their compliance. Compliance would be >expensive, especially considering the sad state >suppliers are in because of noncompliance. > >Meanwhile, Walmart will still force suppliers to 1- >produce low-cost products & reduce costs/prices more >each year; 2- pay the expenses Walmart pushes on them; >3- pay for everything needed to comply with Walmart’s >“standards”; 4- pay for the certification to “prove” >their “compliance”. >5- Walmart’s suppliers want to be profitable. >6- Walmart expects us to believe this will all be done >ethically. >Am I missing something here?!?! > >Raw materials & mass-produced products look alike. >Will a product made in a polluted nation look >different from another made in pristine conditions? > >After the environment in a country is ruined & the >citizens won't tolerate it anymore, manufacturers can >move production to another nation. Would they be >forced to clean up the mess? Legally, yes, they could >be required to do it. But when a company is bankrupt, >it can’t afford to pay anything. > >Bankruptcy is easy enough to arrange. Or a corporation >could shut down completely & the investors could form >another corporation with a different name & charter. > >Shell corporations are formed to hide money >laundering. The same can be done with factories. Many >firms are practically shells since they don’t produce >anything; they outsource production & have somebody >else ship the raw materials, components & finished >products. > >What about trademarks & product patents? Why would >somebody voluntarily close a business & abandon a >profitable mark or patent? The mark or patent user >doesn’t have to be the owner. > >The owner of a mark or patent doesn’t have to be part >of the corporation—officially. So, if a previous >licensee stops paying a license fee (especially if the >licensee ceases to exist), the licensor can license >(give/sell permission to use) the mark &/or patent to >another. > >The next corporation formed by the investors can >license use of marks & patents previously connected >with the products. Manufacturing can be set up in the >next country & who would know the difference? > >Consumers would still find the products with the same >packaging designs & trademarks. >How much time do consumers have to check Walmart’s >documents, then verify the data? > >Small retailers—especially in groups—could present >these concerns to local consumers. It’d better coming >from a 3rd party that wouldn’t profit directly from >the discrediting of Walmart. If a retailer spreads >these points, it may seem like sour grapes/gripes. > >It’s important for retailers to be aware of these >concerns because any supplier can do these things. If >you or your group confronts Walmart about its abuses, >& if you buy from the same offending suppliers, you’d >be a hypocrite. > >Yes, GR M; Walmart may be watching me. Big deal! The >executives & maybe the Waltons (not John Boy’s family) >may be sore about my questions when I worked for them. > >The most significant would be the plea in the employee >handbook about not gossiping because gossip hurts >people’s feelings & reputations. But at the front of >every W-M store were displays of gossip tabloids. > >I sent a comment form to HQ to ask why we’d be advised >not to gossip when W-M sells gossip. The store manager >had a private conversation with me to tell me the >gossip publishers say what they write is true. He >didn’t want to discuss it anymore. But the handbook >writer didn’t condone true gossip. After that, W-M >eliminated that subject from its handbooks. > >I brought up other issues too. When I stopped wasting >time by attending mandatory meetings, nobody objected. >I didn’t do the cheer or the squiggly dance either. > >They put up with me because I stocked shelves well. >Plus, I hate dirt & I cleaned better than most other >employees. > >Anyway GR M, you seem to think Scott was referring to >Walmart when he said: >"A company that cheats on overtime and on the age of >its labor, that dumps its scraps and chemicals in our >rivers, that does not pay its taxes or honor its >contracts, will ultimately cheat on the quality of its >products.” > >Read the quote in the full context- >http://walmartstores.com/FactsNews/NewsRoom/8696.aspx >Scott was referring to other firms doing those >dastardly deeds. The implied message seems to be >Walmart is innocent & refuses to be guilty by >association. It’d be laughable, if it weren’t so >lethally serious. > >My name is Dennis S. Vogel, I wrote & approved this >message. You’ll have to take my word for it. > >Dennis S. Vogel >thrivingbusiness@email.com >Don’t rely on people to figure out why they should buy >from you instead of giant competitor. It’s your job to >persuade them. Giants have the information & methods >they need to pull consumers away from you. Help >yourself to some information & methods you need by >using these URLs. >http://www.voy.com/31049/ >http://www.lakefield.net/~thrivingbusiness/

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