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Suppliers often describe their relationship as "tough, but fair." Twenty thousand companies supply Wal-Mart with over 60,000 items. The process of events that takes place from getting the products to Wal-Mart stores is extremely efficient, and the demanded low prices force their suppliers to be efficient as well. They purchase directly from the company, eliminating any intermediary stops or costs. In addition, Wal-Mart's computer system allows suppliers to know exactly when they need more of a product. This rapid communication is an excellent part of Wal-Mart's supply chain management. Mutual agreement on goals and trust is crucial to an effective and efficient supply chain...
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