Requirements for Suppliers
All Wal-Mart suppliers are obligated to fulfill a minimum requirement. The Standards for Suppliers are expectations of the Wal-Marts suppliers related to social and environmental conditions in the markets. This includes suppliers and their manufacturing facilities as well as subcontracting and packaging related activities.
The Minimum Suppliers Requirements are made up of 3 components:
· Insurance Requirements: Wal-Mart requires that all approved products carry liability insurance. This policy exists to set minimum coverage levels of specific types of insurance. This ensures that all legal costs and other liabilities are addressed in case of a lawsuit related to the supplier’s product. For the suppliers who are providing goods for resale are required to specify the following information; Commercial general liability insurance, automobile liability insurance, workers compensation/employer’s liability insurance, Umbrella/Excess Liability insurance
· Food and Safety requirements: The routine of handling, preparing, and storing of foods in ways to prevent potential health hazards. Suppliers need to consider activities included in the process such as food labeling, food additives and pesticide residues. For potential suppliers of Wal-Mart, there are certain expectations and criteria that must be met to be considered. Food safety assessment requires that all brand suppliers, regardless of the company size, to obtain full GFSI certification (Global Food Safety Initiative). Suppliers will need to confirm that all facilities are registered with the FDA Bioterrorism Registration. Also, Suppliers that will be importing goods will be required to comply with inspection requirements in order to ensure all products meet the regulatory requirements for the retail markets. Most importantly suppliers have to be responsible to familiarize themselves with the laws and regulations (Federal registration requirements) in every state that the products are being sold to.
· Health & Wellness Safety Requirements: Products include; over-the-counter drugs, vitamins, dietary & nutritional supplements, personal care and cosmetics containing pharmaceutical ingredients. Wal-Marts policies state that all companies with the following must meet the Health & Wellness Product Safety Requirements (Federal state and local regulatory requirements) to become a supplier. The Main component to this is the “Supplier Factory & Facility Disclosure”. To be able to supply private label products to Wal-mart there are a few things that need to be considered in the process. Each facility must disclose all information regarding manufacturing, preparation, packaging, labeling, storing and distribution. Suppliers must also ensure that all facilities providing goods are registered with the FDA (Food & Drug Administration)
Relations with Suppliers
Wal-Mart’s relationships with their suppliers are based on lawful, efficient and fair business practices. The processes of selecting its suppliers are always based on objective criteria such as: price, quality, delivery, product suitability, and purchasing procedures. Wal-Mart maintains the relations with suppliers by using ethical practices and is expected to follow all legal requirements.
Walmart Supplier Standards & Requirements. (2014, January 1). Retrieved November 2, 2014, from http://corporate.walmart.com/suppliers/minimum-requirements