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5 years ago

Keeping an eye on Sales - Association of Independent Corrugated ...

Keeping an eye on Sales - Association of Independent Corrugated ...

Get More Value From Your

Get More Value From Your Current Mong>anong>ufacturing Resources 4 bOXSCORE CTI Corrugator Mong>anong>agement Phone: 1-858-578-3550 • Email: info@corrtech.com • Web: www.corrtech.com Corrugator Trimming & Scheduling • Order Promising, Capacity Plong>anong>ning, & Finite Scheduling • Roll Stock Inventory Mong>anong>agement • Supply Chain Execution • Shipment Plong>anong>ning • & More CTI Converting Mong>anong>agement

c h a i r m a n ’ s m e s s a g e Sustainability? I sometimes learn that my opinions are actually shared by others. The validation typically comes from individuals operating independent businesses under similar circumstong>anong>ces. Over the past few months as AICC chairmong>anong>, I have had the great pleasure of meeting other box makers who know that ong>anong> effective sales relationship requires ong>anong> honest response to the position ong>anong>d needs of a customer. My compong>anong>y makes a habit of catering to demong>anong>ding customers ong>anong>d yet our troubles are minor in comparison to those faced by some North Americong>anong> mong>anong>ufacturers. With this in mind, some of you will not be surprised to hear that I am very uncomfortable with the power that Wal-Mart holds over our consumer products industry. My unforgiving list of complaints about Wal- Mart begins with the fact that the stores are ubiquitous. The small corner stores that once dotted the long>anong>dscape have generally vong>anong>ished ong>anong>d gone are the jobs these extinct compong>anong>ies once provided. In their place stong>anong>ds Wal-Mart, with 8,400 stores around the world ong>anong>d roughly 2 million employees. When I say hello to the young womong>anong> greeting customers at our local store, I cong>anong>not help but wonder if this individual lost her previous job due to her new employer’s market affect. Once inside the store, I am confronted with aisle after aisle of every conceivable item a consumer could desire, ong>anong>d yet I am constong>anong>tly compelled to look for the country where these products were made before making a purchasing decision. As the world’s largest retailer, with more thong>anong> 400 billion dollars in net sales in 2010, Wal- Mart has set the tone for off-shoring ong>anong>d is therefore partially responsible for the decline of mong>anong>ufacturing jobs in North America. The compong>anong>y has, in the past, been accused of predatory pricing, selling inferior quality products, ong>anong>d neglecting to provide health care to their employees. Although it is not my intent to find fault with a compong>anong>y for being extremely successful, in my experience, the big box retailer controls the relationship with their product mong>anong>ufacturers ong>anong>d settlements concerning price, inventory, deliveries, packaging, ong>anong>d product losses are most often at the expense of the mong>anong>ufacturer. In 1992, the sale of imports at Wal-Mart was increased to buoy flagging profits. About that same time a “Buy Americong>anong>” program was shown to be flawed in that the products being advertised were actually made overseas. Wal-Mart was similarly stung by critical media exposes in the Los Angeles Times in 2003 ong>anong>d by the PBS program Frontline in 2004. Soon thereafter; the retailer sounded a drumbeat call of the societal need for sustainability. This newly minted environmental advocate was now arguing for healthier foods, reduced packaging, ong>anong>d supply chain reductions in continued on page 7 David Urquhart “ There is no subject, not one other issue, facing the humong>anong> race, more pressing ong>anong>d more importong>anong>t thong>anong> preservation of the environment. ” bOXSCORE 5

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