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Walmart utilize some pretty underhanded tactics against their suppliers. At least they did back in the 90s and I have reason to believe they still do. One exam
by 20after4 3y ago
Walmart utilize some pretty underhanded tactics against their suppliers. At least they did back in the 90s and I have reason to believe they still do.
One example: Place a massive order beyond the capability of the supplier to meet the demand but at a premium price to incentivize them to try anyway. Then cancel at the last minute when production is almost finished but doesn't quite meet the original quantity ordered. Finally come back a few weeks / months later and offer to buy the resulting overstock at a deeply discounted price.
Obviously the blame doesn't all belong to Walmart but when a company is struggling and desperate it only takes a couple of deals like that to put them on a fast track to liquidation of their assets until all that remains is a company dedicated to marketing imported products under a previously prestigious brand.
The company I have specific knowledge about, Rawlings Sporting Goods, shut down most of their US manufacturing at the end of the 1990s and moved everything to China. Walmart had a big hand in driving the nails in the coffin of that ~80 year old company.