Yes, its true. In these desperate times of tumult, economic turmoil, rising gas prices, famine, war and natural disasters, Wal-Mart is working to save us all money... while making plenty for itself. Here's how:
Shrink the goods. Ever wonder why that cereal box is only two-thirds full? Foodmakers love big boxes because they serve as billboards on store shelves. Wal-Mart has been working to change that by promising suppliers that their shelf space won't shrink even if their boxes do. As a result, some of its vendors have reengineered their packaging. General Mills' (GIS, Fortune 500) Hamburger Helper is now made with denser pasta shapes, allowing the same amount of food to fit into a 20% smaller box at the same price. The change has saved 890,000 pounds of paper fiber and eliminated 500 trucks from the road, giving General Mills a cushion to absorb some of the rising costs.
Cut out the middleman. Wal-Mart typically buys its brand-name coffee from a supplier, which buys from a cooperative of growers, which works with a roaster - which means "there are a whole bunch of people muddled in the middle," says Wal-Mart spokeswoman Tara Raddohl. In April the chain began buying directly from a cooperative of Brazilian coffee farmers for its Sam's Choice brand, cutting three or four steps out of the supply chain.
Go locovore. Wal-Mart has been going green, but not entirely for the reasons you might think. By sourcing more produce locally - it now sells Wisconsin-grown yellow corn in 56 stores in or near Wisconsin - it is able to cut shipping costs. "We are looking at how to reduce the number of miles our suppliers' trucks travel," says Kohn. Marc Turner, whose Bushwick Potato Co. supplies Wal-Mart stores in the Northeast, says the cost of shipping one truck of spuds from his farm in Maine to local Wal-Mart stores costs less than $1,000, compared with several thousand dollars for a big rig from Idaho. Last year his shipments to Wal-Mart grew 13%.
How about that huh? The evil Wal-Mart, the scourge of the Left, is saving people money by increasing effeciency and cutting costs. Wow, maybe the capitalist marker really does work. Who'da thunk it?
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