Walmart-at-the-Crossroads-FINAL-06.04.15

11. Warehouse & Food Distribution Industry
Since Walmart has a global supply chain, the company requires a variety of transportation
methods to ensure goods arrive properly at its stores worldwide. Walmart’s products move through
numerous distribution networks via logistics contractors and warehouses located in various regions
around the globe. Warehouses are usually located in logistically strategic areas, such as near shipping
yards or airports. Walmart does not own the majority of these warehouses; instead, many are owned by
different corporations that have been contracted by Walmart. Although Walmart supposedly controls its
warehouse suppliers through inspections and regulations, each corporation, each warehouse, and
perhaps even each floor manager has its own way of doing business.
According to MWPVL International, a logistics and distribution consulting firm, Walmart’s
labor strategy is to outsource warehouse management and product distribution to third-party logistics
companies that often use temporary staffing agencies to hire warehouse employees. These temporary
agencies do not provide workers with basic health and safety resources, holidays, vacation time, sick pay,
or many of the other benefits to which Americans are accustomed.
404
Temporary workers have little job
security and are often forced to work under extremely unhealthy and hazardous conditions. By using
these logistic companies, Walmart is able to remove its trademarked name from
accusations that it is mistreating workers.
405
Schneider Logistics and United Natural Foods, Inc. (UNFI) are two examples of Walmart
warehouse and distribution contractors that have been found in violation of the most basic labor
standards. UNFI in particular has also been cited for environmental concerns. The labor and
environmental violations found within Walmart’s logistics and distribution system illustrate the need for
a third-party monitoring system that includes workers and for increased transparency of its suppliers.
A. Supplier 1: Schneider Logistics
In 2012, Schneider Logistics operated two Walmart import distribution warehouses. One was
located in Mira Loma in Southern California, and the other was outside of Chicago, Illinois in
Elwood.
406
With almost 10,000 trucks, over 8 million square feet of warehouse space, and billions of
Page !79