Wal-Mart sets new Chinese supplier standards

Thursday, 23 October 2008
 
Wal-Mart, Asda's parent company, has said that it will set new quality standards for its Chinese suppliers after scares over toxic milk products in the country.

All products are eventually to be included in the move that is due to begin next month, the firm said.

International division vice chariman Mike Duke said "greater transparency" is needed from these partner suppliers and they will have to divulge the name of every factory where products are sourced from.

He told them: "Essentially, we expect you to ask the tough questions, to give us the answers and, if there's a problem, to own the solution."

But as a result, chief executive Lee Scott said, Wal-Mart could be set to make a smaller profit margin on some non-food products.

Scott added: "I firmly believe that a company that cheats on overtime and on the age of its labour and that dumps its chemicals in rivers will ultimately cheat on the quality of products."

This week, Chinese cribs sold by Wal-Mart were the subject of a recall by Delta Enterprises, which is based in New York.

And last month, Tesco withdrew White Rabbit Creamy Candies from stores because fears were raised that they contained melamine - the substance in milk drinks linked to four baby deaths in China.
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