Nike vs Walmart Suppliers

Wal-Mart has the strongest supplier monitoring program because they periodically evaluate and modify standards based on feedback. Prior to contracting any supplier, Wal-Mart required the suppliers to review and sign a supplier agreement, which incorporated an expectation that the supplier would comply with Wal-Mart’s “Standards for Suppliers.” Wal-Mart invested in establishing standards for its suppliers and implemented an ethical standards program that helps Wal-Mart monitor its suppliers regarding whether or not they are abiding by the standards. When compared to Wal-Mart, Nike conducted less audits and did not have the same standards set for its suppliers. Wal-Mart conducts extensive audits, some of which are unannounced giving the suppliers less time to react or prepare for the visits.

The unannounced audit visits helps Wal-Mart keep an eye on the activity of its suppliers regarding whether they are in compliance with the standards. If a supplier is not in compliance with the standards, Wal-Mart enforces a fine or penalty for violation of the rules and regulations. If a supplier does not follow the standards set by Wal-Mart, then Wal-Mart cuts ties with that supplier. Wal-Mart is constantly working on maintaining a good image and reputation. In order for Wal-Mart to sustain a good reputation, strict standards and policies are in place for the suppliers to follow. Wal-Mart continuously works with suppliers by educating and training the workers and having new operating practices that are easy to adhere to.