Sunday, September 11, 2016

Wal-Mart to Stop Selling ‘Egyptian Cotton’ Sheets Made by Welspun India

One of the biggest challenge in International business is the Supply chain management. global supply chain management involves coordinating and improving the flow of goods, services and information in companies around the world. Both companies involved in the import/ export contract have a shared responsibility to maximize compliance with laws and regulations.
In this article, Wal-Mart is removing the products because the legitimacy of this product cannot be proven. 
In the article, it is said that they had previous doubts about the authenticity of the Egyptian Cotton, but it was cleared out with couple investigations. At this point, they should had been more carefull and paid special attention to the products sold by Welspun.
Before being able to engage in import/export, some basic steps have to be followed. from the document  "Importing into the United States A Guide for Commercial Importers", in the section entry of Goods, it is mentioned that documentations are submitted before it is allowed to enter the United States borders. These documentations are given from the exporter country to the importer country. 
in order for a foreign country to export to the U.S. these steps have to be followed and being approved by the U.S.


The customs clearance proves that Wal-Mart agreed to the quality of the product before the documentation was released and approved to enter the territory.

http://www.wsj.com/articles/wal-mart-to-stop-selling-offer-refunds-for-egyptian-cotton-sheets-made-by-welspun-1473445139


2 comments:

  1. This issue illustrates the complexities of the global supply chain, as well as the challenges that can come from several retailers depending on one major supplier for similar goods. It is also a clear indication that U.S retailers may not have full knowledge regarding the source of the raw materials of their goods (which ultimately is their responsibility). This is especially problematic for retailers and marketers as modern consumers are increasingly more savvy and demand authenticity and sustainable manufacture of products. Additionally, when consumers encounter widespread counterfeiting, they become distrustful of particular brands and this will definitely affect a retailer's bottom line (as is the case for Target and Walmart) not to mention reputation. Ally Montillo

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  2. that is the issue here, the U.S retailers are supposed to know what they are selling therefore firmly require their sellers to provide clear documentations to prove the authenticity of the raw materials they are using especially when they had previous doubt with the company they dealt with...

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