Walmart Case Study: Analysis of Sustainable Clothing Procurement

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Added on  2019/09/22

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Case Study
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This case study examines Walmart's approach to procuring sustainable clothing. It outlines the process, starting with reviewing portfolios from companies like H&M, Nike, and Levi Strauss, and then issuing Requests for Proposals (RFPs). The case study focuses on the importance of supplier evaluation and quality control, highlighting how Walmart uses a checklist and an external auditor to ensure sustainability standards are met. It also emphasizes the need for partnerships with suppliers to achieve sustainability goals. The purchasing process involves online applications, evaluating quotations, and assessing profitability. The case study concludes by mentioning the importance of selecting suppliers that provide the optimum value. The assignment provides a detailed analysis of Walmart's sustainable clothing procurement practices.
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Purchasing Case Study: Walmart
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Company Name: Walmart
Situation: Need to purchase sustainable clothing
At first, the portfolio of the products from H&M, Nike and Levi Strauss will be
reviewed. Request for Proposals (RFPs) will be invited from these companies are
taking notable initiatives to produce sustainable and high-quality clothing. The portfolios
would be found online. On the basis of the RFP, the quotations will be evaluated by the
procurement team. The sourcing philosophy of Walmart is based on quality control
with the help of thorough supplier evaluation (Corporate.walmart.com, 2019). Walmart
management also focuses on creating a supplier network to ensure uninterrupted supply
of raw materials.
The purchasing process would be completed in several steps. The suppliers would
require applying online through the Walmart website. Walmart gives importance to
maintaining the quality of the inventory at the time of sourcing. Therefore, the
organization uses a checklist for quality control. The most sustainable suppliers would
be selected on the basis of the evaluation. After identifying the most sustainable
suppliers, the quotations will be requested. On receiving the quotations with price, the
profitability of each proposal would be assessed. The suppliers which are providing the
optimum value would be selected.
The quality of the products offered by the suppliers would be checked through an audit.
The organization needs to appoint an external auditor to ensure that the suppliers are
maintaining the sustainability standards in their operations. The organization also needs
to develop a partnership with the suppliers to meet their sustainability goals.
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References
Corporate.walmart.com. (2019). Our Business. Retrieved from
https://corporate.walmart.com/our-story/our-business
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