When Wal-Mart Speaks
Wal-Mart is using its extensive supply chain to help it reduce packaging,
reduce costs, and improve profitability.
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Another significant component can be seen in the overall objective to "reduce packaging." Many factors that will meet this criteria will also directly or indirectly reduce costs throughout different areas of the supply chain. Several criteria included in the Scorecard's nine metrics are closely related to cost reduction. These include product/package ratio, cube utilization, and transportation. Granted, Wal-Mart will use its leverage to get its "fair share" of the cost reduction, but with good management, others in the supply chain should benefit from both cost reductions and the potential for increased business.
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Tom Polischuk
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