Rathodics

Call it Rathodics, Rathodology, Rathod-gineering, or Rathodistry; chances are high that you will find lot of useless things on this blog. Nevertheless, I thank you for visiting my blogsite, and hope you spend sometime reading the blogs and commenting on them. Further, you can visit me at http://www.unm.edu/~srathod

Friday, October 01, 2004

"Made in India" pretty soon in Walmart stores

Finally, Wal-Mart to set up 100% arm in India. Being a supplier to Wal-Mart (WMT) is indeed a matter of pride. However, Wal-Mart has the reputation of driving a lot of suppliers out of business. It is interesting the way Wal-Mart works with its suppliers so that Walmart can offer its consumers the lowest price. It is said that when Wal-Mart approaches a supplier, instead of the normal procedure of a retailer defending its financial statements, Wal-Mart makes the supplier produce its financial statements. The supplier would say that it can offer, for instance, 1,000 quantities of a product at $10. Walmart would propose that it will buy the product in quantity of 100,000, but it has to be offered at $3. Given the prospect of a steady business of 100,000, the supplier usually ignores the consequences of the reduced margin, and more often than not, if it does not pay attention to its strategies is out of business in a short while.

Another piece of information: positions 6 to 10 in the richest person belongs to the Waltons.

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