SCD: Walmart to spend $350bn on local sourcing, work to pinpoint barriers to reshoring

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SUPPLY CHAIN DIVE writes…

Dive Brief:

– Walmart will spend $350 billion over the next decade on supplies produced, grown or assembled in the U.S., John Furner, president and CEO of Walmart U.S., said in a blog post Wednesday. 

– Furner touted benefits such as increased support for small and diverse suppliers in the U.S., plus reduced carbon emissions, as the retailer sources closer to the end consumer. 

– Walmart also plans to work with manufacturers, academics, governments and development groups through a program called “American Lighthouses.” The groups will pinpoint barriers to U.S. production with the goal of returning manufacturing to U.S. shores long term.

Dive Insight:

Walmart has invested in U.S.-based sourcing in the past, with a commitment in 2013 to spend $250 billion on U.S.-made products.

Now the retailer is expanding upon that initiative as buy-American sentiment has been steadily growing among consumers. Furner wrote that 85% of customers signaled it’s important to them that Walmart carry products made or assembled in the U.S., citing a survey by the retailer’s customer insights team.

Buy American is also a priority of the current presidential administration. President Joe Biden signed an executive order in January directing federal procurement to focus on U.S.-made goods…

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