Wal-Mart seeks success in China by restructuring its supply chain

 

Wal-Mart Stores Inc. is trying to shed its American ways and cater to very different customs as it seeks a better foothold in China’s $1.1 trillion grocery market.

The high-stakes strategy includes restructuring its supply chain, The Associated Press reports, to bring Wal-Mart’s efficiency into back-end operations while working in the stores to get more customers to buy its groceries.

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The bigger goal is to have China’s grocery shoppers become bigger consumers of the company’s other goods, a crucial part of Wal-Mart’s efforts to turn around its troubled international business.

One challenge is that the company doesn’t have the clout in China to squeeze local suppliers on price, as it does in the U.S.

Still, Wal-Mart has cut out many of the middlemen that anchor China’s notoriously inefficient supply chains, and the company believes its better distribution standards will help feed stronger sales.

Fuente: The Wall Street Journal.


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