Wal-Mart Stores, Inc.Global Procurement

Wal-Mart Stores, Inc.Global Procurement

David Blackwell Vice President &

Chief Financial Officer,

Global Procurement

Wal-Mart’s Global Retail PresenceWal-Mart’s Global Retail Presence

ArgentinaArgentina12 units

BrazilBrazil295 units

Canada Canada 278 units

Puerto RicoPuerto Rico54 units China China

56 unitsMexicoMexico780 units

GermanyGermany 88 units

S. Korea16 unitsUKUK

317 units 317 units

U.S.U.S.3,808 units

Japan397 units

Units3,864 U.S. 2,670 International6,534 Worldwide

Units3,864 U.S. 2,670 International6,534 Worldwide

Central AmericaCentral America372 units

1.8 Million Associates

Italy

Dubai

Turkey

India

Sri Lanka

Dhaka

Chittagong

Thailand

Singapore

Indonesia

Philippines

Taiwan

Shenzhen

Putian

Dongguan

Korea

Shanghai

Hongkong

Global Procurement Worldwide PresenceGlobal Procurement Worldwide Presence

28 Field Offices

Mexico City

SpainBentonville

PakistanGuatemala

Honduras

Nicaragua

Brazil

Chile

U.K.

Egypt

•Surety of Supply

Diversification of Supply Base

Right Suppliers

Capacity / Infrastructure

•Shift from Cost to Corporate Value

Quality & Relevance

Speed to Market

Business Sustainability

•Surety of Supply

Diversification of Supply Base

Right Suppliers

Capacity / Infrastructure

•Shift from Cost to Corporate Value

Quality & Relevance

Speed to Market

Business Sustainability

Key Sourcing Strategies / FocusKey Sourcing Strategies / Focus

• Country Core Competencies

• Stability – Political & Fiscal

• Infrastructure

Physical

Legal Recourse / Investment Climate

• Artificial “competitiveness” is not sustainable

• Country Core Competencies

• Stability – Political & Fiscal

• Infrastructure

Physical

Legal Recourse / Investment Climate

• Artificial “competitiveness” is not sustainable

FDI / Sourcing Decision – Key FactorsFDI / Sourcing Decision – Key Factors

• Productivity Driven Business Model

• Spur Efficiencies in Supply Chain & Competitors

• Enabler for Supplier Development

• Sustainability Driving Greater Involvement Throughout Supply Chain

• Customer Savings in 2004 was $2,300 in each U.S. household

• Productivity Driven Business Model

• Spur Efficiencies in Supply Chain & Competitors

• Enabler for Supplier Development

• Sustainability Driving Greater Involvement Throughout Supply Chain

• Customer Savings in 2004 was $2,300 in each U.S. household

Wal-Mart’s Contribution to CountriesWal-Mart’s Contribution to Countries

BusinessSustainability

A Competitive Strategy for the 21st Century

Business Sustainability….

Economic benefits derived from improved

environmental and social outcomes

• Environmental Net Impact

• Consumer Impact

• Economics

• Geopolitical Stability / Productivity

• Environmental Net Impact

• Consumer Impact

• Economics

• Geopolitical Stability / Productivity

Business Sustainability – Key FactorsBusiness Sustainability – Key Factors

Sustainable Value NetworksSustainable Value Networks

Climate

Waste

Products

Global Greenhouse Gas Strategy

Energy, Design Construction & Maintenance

Global Logistics

Operations & Internal Procurement

PackagingTextilesElectronics

Food & Ag

Forest & Paper

Chemical Intensive Products

Jewelry

Seafood

China

Sustainable Value Networks

Sustainable Value Networks

WMT

SAM’S

INT’L

ACADEMICTHOUGHTLEADER

SUPPLIERTHOUGHTLEADER

NGOTHOUGHTLEADER

GOTHOUGHTLEADER

SUSTAINABLEVALUE

NETWORK

The Role of Suppliers in Sustainable Value

Networks

The Role of Suppliers in Sustainable Value

Networks

Traditional Plastic NatureWorks® PLA

Day 1 to ?

Renewable ResourceRenewable Resource

Traditional Thinking About Cotton

6 oz chemicals

What can we do together?

What future will we choose to create?

What can you do?

Sustainability

Wal-Mart Year Beginning Meeting 2006

Sustainability

Wal-Mart Year Beginning Meeting 2006

Environmental Sustainability in the Supply Chain

Environmental Sustainability in the Supply Chain

DIRECT8%

INDIRECT Environmental Impact92%

Packaging

Factory Pollution

Fish safety & sustainability

Agricultural practices

Packaging (e.g. corn-based)

Water usage & pollution

Facilities (energy and building materials)

Energy efficiency

Supplier challenge to increase mileage 25% by 2007

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