Communication is the Alpha and Omega in Logistics
No delivery reaches its destination without clear communication. Supply chain management and logistics require clear instructions and efficient information flow.
Written by Adriana Pulley
Walmart warns its suppliers that they will not be paying higher prices for products anymore. The move spurred rivals Target and Amazon to take a similar stance per the Wall Street Journal.
These larger retailers are reclaiming power by canceling orders, resisting price increases, and in some cases asking suppliers to provide discounts.
…they increased hiring and struggled to meet freight needs at so high a rate. The demand was high, and these suppliers were able to shift the power in their favor. Earlier this year, however, retailers flashed warnings about high inventory levels. Walmart and Target buyers stopped placing orders with Newell and other suppliers in a swift takeback of power.
However, these latest negotiations will continue to be exceptionally fierce due to the unpredictability of today’s economic climate. Retailers seek to attract increasingly thrifty shoppers, but producers want price hikes to cover rising costs. Yet it’s clear that in this game of tug-of-war, Walmart just has more pull.
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