Wal-Mart (WMT) keen on Chinese suppliers going green


Wal-Mart Stores, Inc. (NYSE: WMT) seems keen on the green scene. No, that's not a limerick, but apparently a state of mind at the world's largest retailer. Not only does it control the temperatures of its stores from its Bentonville headquarters; it's becoming fanatic about eco-sustainability and green products. Now that its well into being able to procure and supply ecologically-sound products to its customers, it has a mandate to its Chinese suppliers.

It wants them to cut energy use and become more green themselves -- outside the products it supplies to the retailing behemoth. Can a company push its suppliers to themselves become more eco-friendly? That's what Wal-Mart is intending to do here. It has pushed for the absolute lowest prices from its huge Chinese suppliers before, and now it wants to tell them how to eco-manage a business. Will these Chinese suppliers scoff at being told what to do? Doubtful. You see, many of them completely rely on Wal-Mart's business to survive and thrive.

Eco-sustainability is apparently not a buzzword, but an action strategy at Wal-Mart. The reason: it services Wal-Mart's low-price focus (of course there is a business reason!). If Wal-Mart's suppliers can themselves save costs using energy cuts and other actions, those savings can then be priced into the product and passed on to consumers. After all, Wal-Mart's "Save Money. Live Better" may not just be a marketing pitch. Right now, in this recession, it's a way of life for millions of Americans.

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