I know this is not the latest news, but it is still relevant. Here is an interesting article from earlier this year about Wal-Mart signing a sourcing contract with giant trade agency Li & Fung. This is a little backwards of previous trend of going direct.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSDzLcEyoNas
So if Wal-Mart has backup its integration efforts will other retailers take note and follow suit? I imagine so. I think that Wal-mart has learned that they just cannot control every facet of business. You can have experts in every area of product. Thus you have new strategic alliances forming to maintain supply chain activities.
Family Dollar should take notice. Having such a strategic partnership with several agencies could give them several benefits.
1. They save their employees time on project and increase efficiency
2. They reduce the risks by having an intermediary
3. They have a stronger voice within various industries
4. They can bring better quality and styled goods to market
5. They increase external resources for product sourcing and development
Typically, larger retail companies have pushed for integration closer to the source of goods to save costs, but how close is too close. I think companies are finally realizing diminishing returns on direct sourcing because some outside firms really do add value to the import process.
This Blog has been created for my MGT 656 class for MBA at the Murray State University. The goal of this blog is to monitor the public activities of the Family Dollar Corporation in relation to what I am learning and have learned in my studies. I will integrate my professional experiences and perspectives of product sourcing in the wholesale and retail industries to the blog as well.
About Me
- Brent- Family Dollar
- I have a background in sales and product management. I enjoy finding products that make it to the retail shelves and sell. I am wired half creative and analytical. I tend to see both sides of the issue. I know how to approach things rationally and I can switch gears to think “outside the box”. I enjoy traveling. I have had the opportunity to travel to many places in the world: Europe, South America, Asia, and Africa. I try to take on a global perspective when looking at the dynamics that are effecting an industry becasue we are in global economy.
I think that Walmart has lost a lot over the last year. Substitute products are offered but prices continue to soar. They treat their employees horribly. I am not a fan of Walmart.
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