Wal-Mart Stores Inc. (NYSE: WMT), after having been connected to multiple safety recalls in 2008, has finally said it will require higher standards from its suppliers. Not just any suppliers, but those specifically manufacturing in China. It's no surprise -- China has been the source of almost all of these recalls, from baby food to toys to play guitars.Wal-Mart indicated yesterday that it will be setting new quality standards for its Chinese suppliers. What has transpired in China recently is completely pathetic; it its quest to grow its already-hot economy, the country appears to have little quality oversight in many, many areas. But when Wal-Mart says that it wants better quality, things could change. China is - by far - Wal-Mart's largest overall supplier.
But then again, lip service could be at play here by the world's largest retailer. If it really wants to change things, make quality standards public and transparent to the WMT shareholder and your customers. Then, and only then, will Wal-Mart's new "quality standards" requirement have any real worth. Until then, the proof won't be worth any pudding.
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Reader Comments (Page 1 of 1)
10-23-2008 @ 7:09PM
Mrs. Banks said...
One would think that WM would want to put their MANY patrons first by making sure of the quality of their goods in the first place! As a big WM supporter, I bargain shop, I have been to the point where I would rather pay more, support some other business, local, where I don't have to question the quality of every item I purchase. The lead painted toys for children was the straw! Now, Chinese kids are dying and very ill from their own formula. To have lower costs for products, does safety have to be compromised? I don't think so, I think GREED is the premise as with so much that is going on with the economy today. Merchants have gone WAY beyond making a profit.
10-24-2008 @ 12:35PM
Gary E. Sattler said...
If product quality standards and labor standards had been declared and enforced 20 years ago, as a condition of the importation of Chinese goods, what a different world we would have today.
Many good Americans would still have their manufacturing jobs.
Thank you, Jimmy Carter.