Shannon Brandao
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From The article: "Reuters [excerpt]: #Walmart is importing more goods to the United States from #India and reducing its reliance upon #China as it looks to cut costs and diversify its #supplychain, data seen by Reuters shows.
The world’s largest retailer shipped one quarter of its U.S. imports from India between January and August this year, according to bill of lading figures shared with Reuters by data firm Import Yeti. That compared with just 2% in 2018.
Only 60% of its shipments came from China during the same period, down from 80% in 2018, the same data shows. To be sure, China is still Walmart’s biggest country for importing goods.
The shift illustrates how the rising cost of importing from China and escalating political tensions between Washington and Beijing are encouraging large U.S. companies to import more from countries including India, Thailand and Vietnam.
'We want the best prices,' Andrea Albright, Walmart’s executive vice president of sourcing said in an interview. 'That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials.'
In a statement, Walmart said the bill of lading data painted a partial picture of what it sourced and that creating redundancy 'does not necessarily mean' it was reducing reliance on any of its sourcing markets. 'We’re a growth business and are working to source more manufacturing capacity,' Walmart said.
India has emerged as a key component of Walmart’s efforts to build that manufacturing capacity, Albright said.
India, whose stock market has risen to record highs this year, is viewed as the country best equipped to outperform China in low-cost, large-scale manufacturing.
Its rapidly growing workforce and technological advancement were a draw for Walmart, Albright said. China on the other hand reported its first decline in population in six decades last year.
Walmart started its sourcing operations in Bangalore in 2002. Now, the company employs more than 100,000 people, including temporary workers, in the country spread across several offices under its Walmart Global Tech India unit, Flipkart Group, PhonePe and sourcing operations.
Walmart CEO Doug McMillon met Indian Prime Minister Narendra Modi in May this year, a meeting that Modi termed “a fruitful one.”
'Happy to see India emerge as an attractive destination for investment,' Modi wrote on X, formerly known as Twitter, on May 14. McMillon said Walmart would 'continue to support the country’s manufacturing growth and create opportunity.'”
#news #business