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Walmart To Establish Local Supplier Partnerships In India To Keep Costs, Prices, Down

October 10, 2012: 12:00 AM EST
Walmart’s plan to further penetrate the Indian market is moving forward through creation of local supplier partnerships. Small and mid-size suppliers of local private label brands will be the focus of the partnerships, according to Walmart. The strategy is to create efficient, cost-effective models of local procurement to keep store prices as much s 10-15 percent lower. The strategy should work well in India, where tastes change every 100-200 km. Walmart will source products locally and within a 100-km radius of a store. The model will lead to savings on transportation and other costs.
Dipti Jain, "Walmart to source locally in India", Times of India, October 10, 2012, © Bennett, Coleman & Co. Ltd.
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