Video Transcript: SCM Example - Walmart Supply Chain

This T shirt is on sale at Walmart in the USA at an incredible $5.97 how is this  price possible? Made miles away from the shop, shipped around the world,  stored in a warehouse, and then went to the shelves of a store. Of course,  Walmart is a giant. It's the world's biggest retailer and the third largest employer  in the USA alone. Walmart has more than 4600 stores in which 130 million  people shop each week and around the world, every second, 400 people shop  at one of the 10,700 stores that Walmart has in 27 countries. Walmart had  revenues of $466.1 billion in net sales in 2012 How come Walmart stay at the  top with that extraordinary profitability when it's selling T shirts at $5.97 Let's  begin by having a look at a Walmart store in the USA. The average hourly wage  of the workers that sell this t shirt is $8.81 which translates to an annual pay of  $15,576 one based upon Walmart's full time status of 34 hours per week, this is  significantly below the federal poverty level. Here we have a first hint. And what  about benefits? If you're a part time employee, which most Walmart workers are, you don't get any health care coverage by the company. Walmart holds another  record on this. It is the employer that has the highest percentage of workers  having to rely on government assistance, thus receiving more than $1 billion per year in subsidies from the US taxpayers. Faced with these conditions. Don't  Walmart workers in the USA complain. They do, but every worker who speaks  out faces instant retaliation measures ranging from disciplinary hearings to hour  cuts and even dismissal. But let's get back to the journey of our T shirt. Walmart  is the largest mover and seller of goods in the world. Most of the goods sold at  Walmart in the US are made abroad when arriving in the country, they're stored  in giant warehouses run by third party contractors hired by Walmart. Agency  workers and day laborers work inside these warehouses in an extremely  stressful and dangerous environment where injuries and accidents are common, they're paid very low wages tied to a piece rate system, receive no benefits and  face retaliation if they report injuries or complain about conditions. And what do  we find if we follow the t shirt back to its place of origin. Walmart's supply chain  comprises more than 100,000 suppliers and millions of workers. The company's  purchasing practices aim to get the maximum flexibility and the lowest prices  from its suppliers, who, in order to do business with Walmart, pass on these  pressures to their own workers, with very poor pay and often dangerous working conditions. Our T shirt is made in Bangladesh, the world's second most  important garment producer. Bangladesh textile workers are among the lowest  paid in the world, 60 to 80 hour work weeks, no overtime pay, no health care  and illegal subcontracting. Are common workers who speak out about these  conditions and try to organize regularly, face intimidation, dismissal and even  violence. Walmart is the second largest buyer of garments from Bangladesh, a  country where more than half of textile factories are vulnerable to collapse, and  fires with fatal consequences have become commonplace after the largest  factory fire in the history of Bangladesh, in which 117 workers died, Walmart 

explicitly refused to pay more to upgrade Bangladeshi factory buildings, and  even after the deadliest industrial accident in the history of the world, when the  Rana Plaza building collapsed and 1129 people died in horrendous  circumstances, Walmart refused to join a large number of global companies that  signed a legally binding agreement to improve building and fire safety in  Bangladesh, perhaps our $5.97 t shirt was made right here at Rana Plaza. That  would mean that Walmart is a top company, because it aims to cut costs at any  price. Across its giant supply chain and stores without any consideration for  ethical standards or social responsibilities. And this certainly doesn't only affect  those supplying and working for Walmart with its size and reach, Walmart is  dictating standards that affect workers in all industries and all around the world,  leading the global race to the bottom for working conditions, taking on a giant  such as WalMart, requires workers and unions at every part of the supply chain  and in the stores to join forces. The UNI Walmart Global Union alliance is  demanding that the company improve working conditions, respect the rights of  its global workforce and sign a global agreement with UNI which ensures that  Walmart employees all over the globe have a fair opportunity to fully exercise  their rights to freedom of Association and collective bargaining. Workers are also uniting across Walmart supply chain to win dignity and safety. Walmart has a  history of labor rights violations on a global scale. Together, we must stop  Walmart's race to the bottom. Together, we can bring a human face to Walmart  supply chain together, we will gain respect for Walmart workers all around the  world.