An Interview with a Wal-Mart Supplier

As Wal-Mart continues to push suppliers to the brink of death, more and more suppliers are opening up about their relationships with Wal-Mart.  The stories all contain one common denominator:  “It’s always hard to make money from Wal-Mart orders.” And while big brands like Proctor and Gamble can supply Wal-Mart at cost, smaller suppliers do so and “wait to die”.  In an article from Sinotoys.net, “Bo Lin” (an alias), a toy supplier for Wal-Mart, describes the woes of working with the giant.  Aside from Wal-Mart’s low cost bargaining tactics, Bo Lin also describes being bribed by Wal-Mart factory inspection officials to pass inspection, regardless of the circumstances in his factories.

“We’re a small enterprise.  Life and death can happen in a split second,” Bo Lin said great anguish.

Last month, a business owned by a friend of Bo Lin’s closed down.  That was a stationery processing plant with sales that surpassed 400 million [RMB].  Almost all the goods were supplied to Wal-Mart.  Bo Lin’s factory is also a Wal-Mart supplier.  “We all used to do business with Wal-Mart for the glory,” Bo Lin said describing the initial excitement of becoming a Wal-Mart supplier.

During our interview, Bo Lin repeated that sentence 5 times. 

But after 4 years of struggle within Wal-Mart’s supply chain, Bo Lin is determined to withdraw. “Four years is the cycle of death and rebirth”.  This is “established law” for all of Wal-Mart’s suppliers.  The difference is only whether to die or withdraw.

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