Walmart to hold domestic sourcing event
New York -- Cindi Marsiglio, VP of U.S.manufacturing for Walmart, shared new details about the company's first-of-its-kind event, which is designed to advance the retailer’s $250 billion domestic sourcing agenda. The event is planned for early July in Bentonville, Arkansas.
During a fast-paced presentation Thursday morning organized by a group called Doing Business in Bentonville, Marsiglio shared wide-ranging insights regarding the company’s 10 year, $250 billion domestic sourcing commitment unveiled in January 2013.
“We’ve got a really big number to hit by 2023 and I need your help,” Marsiglio said to an audience of more than 100 people largely comprised of suppliers. “We are going to make the number and I hope we are going to make it faster.”
To do so, Walmart is focused on three areas:
Buying more products from domestics suppliers from whom the company is already purchasing products.
Find new products sourced from U.S. suppliers.
Reshore production to the U.S. where it makes sense.
Walmart has strategies is place to further each of those objectives, including a major undertaking planned for July 7-8 in Bentonville. The event, details of which are still being determined, will blend elements of several previously held domestic sourcing related events into one major event. For example, Walmart held domestic sourcing summits in Orlando in the summer of 2013 and last summer in Denver. Those events brought together economic development officials with suppliers and component part manufactures. The company also held what it called an “open call” event in Bentonville last July where current and prospective suppliers had an opportunity to present new items to merchants. The upcoming event will unify elements of both events into a two-day domestic sourcing mega-event.
“We have a lot of planning to do in the next 16 weeks,” Marsiglio said.
Registration for the event will open in April and while detail are still sketchy the first day will resemble the Open Call format which is like speed dating between merchants and suppliers.
“We want to see new and different products that you are making in the U.S.,” Marsiglio said.
The first day will conclude with a reception followed by a summit format on day two. Keynote presentations, a general session and supplier academies on a wide range of topics will comprise day two, according to Marsiglio.
Walmart’s $250 billion commitment was made by former Walmart U.S. president and CEO Bill Simon in January 2013. When he left the company last summer and was replaced by Greg Foran, there were rumblings about whether a New Zealand native from Walmart’s International division with no prior U.S. experience would be as committed to the cause as Simon.
“He is as enthusiastic as I could ever hope someone would be,” Marsiglio said. One of the reasons Foran “got it instantly,” according to Marsiglio is because he is veteran food retailer who understands the efficiency, supply chain and customer satisfaction implications of sourcing goods close to the point of purchase.
Given the solid business case for increased domestic sourcing, Marsiglio added that shopper insights also indicates country of origin is hugely important, especially in key categories.
“Second to price, customers care where their products come from,” she said, singling out categories such as baby, pets and food and consumables. “Our customers want to buy products closest to their communities.”