Walmart is reporting problems in Bangladesh – safety issues at some factories. They’re also reporting that most factories, where there were problems, have since made improvements. In absolute terms, out of 200+ factories audited for safety, 32 failed and 30 have made improvements (read more here). Walmart stories on this topic earlier in 2013 stated that 279 factories would be audited, and the company would partner with Bureau Veritas to test and train suppliers around safety.
If you have followed Walmart’s activities over the years – and you should have, as they set so many precedents – you already know that they scorecard their suppliers publicly. You can find the results here. For example, if you click on the link for “REU,” you will get a PDF document that ends with: “This factory is presently unauthorized for production of product for Walmart. The factory is currently undertaking remediation, and will be reassessed upon completion of remediation.”
If you are interested in how they audit their suppliers – visit this page. For aggregated results by region from the 2009-2011 time period – look here – note the dismal performance records of Region D which includes China, as well as Region F which includes Bangladesh.
Look at their Global Responsibility program and see how many initiatives they have under way. These initiatives go back to the end of 2005 when Walmart started a sustainability program. Understandably, there is a lot of inertia involved when a giant like Walmart starts the lumbering process to change how it does business.
The relatively open playbook on their standards, and how suppliers perform (or not) is commendable, at Spend Matters we think the “sunshine method” is a great approach to drive supplier behavioral and other supply chain change.
For further reading on supplier management:
Sustainability in Procurement: Prevent the Next “Bangladesh Factory Fire” From Happening Again
Planning a Long-Term Response to the Bangladesh Factory Fire
Sustainability in Procurement: Why Do Sweatshop Scandals Occur?
How Do You Handle Underperforming Suppliers?
Supplier Management Market Landscape: Detailed Slide Download!
Supplier Management Data: 90+ Fields Finance and A/P Want Info On
Supplier Management Data Collection: 75+ Company Level Fields
Of Supplier Management…and Horsemeat
Beyond Bird Flu 2.0 – Inoculate Your Supply Base Against Supply Chain Risk
The Policy Supply Chain: Conflict Minerals and Preparing for Mandated Ethical Sourcing
Conflict Minerals Analysis: Readiness, Technology, and Questionable Practices
Conflict Minerals Compliance: Checklists, Templates, Planning Documents
Conflict Minerals Q&A: SEC Enforcement, China, Scrap, and Supplier Views
Conflict Minerals – How To Prepare Your Supply Chain (Part 1)
Conflict Minerals – How To Prepare Your Supply Chain (Part 2)
“Be Smart About” – Supplier Information Management Solutions (Part 1)
Procurement Visibility and Insights – Supply Chain Transparency
Supply Performance Management – Introduction
Supply Performance Management: Critical For Procurement Measurement
Re-thinking and Re-claiming “Tail Spend”
Prime Contractors – Sensible Procurement Tool or Soft Option?
Prime Contractors: Sensible Procurement Skill or Soft Option (Part 2)
Offsets, Local Content, and Supplier Information Management
Offsets, Local Content and Supplier Information Management (Part 2)
Direct Material Sourcing and Supplier Management Platforms (Part 1)
Direct Material Sourcing and Supplier Management Platforms (Part 2)
Can Supplier Management Be Saved? The Problems With SIM, SRM and Risk Management (Part 1)
Can Supplier Management Be Saved? The Problems With SIM, SRM and Risk Management (Part 2)
Global Supplier Intelligence: A Bureau van Dijk Review
RollStream (GXS): Supplier Management Prospect, Customer and Competitive Recommendations and Analysis
LockPath – A Hybrid GRC and SPM Approach to Conflict Minerals (Part 1)
LockPath – Taking a Hybrid GRC and SPM Approach to Conflict Minerals (Part 2)
HICX Solutions: Supplier Management Meets Master Data (Part 1)
HICX Solutions: Supplier Management Meets Master Data (Part 2)
Cortera – Looking at Supply Chain Risk Through the A/R Lens