After several years of supply chain disruptions, large retailers such as Walmart and Target are beginning to return to their old ways of operating by pushing heavy fines on suppliers for failing to deliver products in an efficient and effective manner.

Retailers like Walmart and Target have always imposed fines on suppliers for failing to meet orders but during recent supply chain hurdles, large retailers have become much more lenient. As the economy is attempting to recover retailers have become much more strict.

Marta Cros, the owner of the skincare company Apto, spoke on the subject after Walmart began selling her product last year. One order of lip balms had mistakes within the barcodes and resulted in losses totaling as high as $200,000. Marta was able to regain about 90% of those losses only after 10 months of arguments with the retailer. Marta doesn’t blame Walmart but also stated that “You need to be very conscious about what you’re getting into, you can freaking bankrupt your company if you’re not very careful.



Source: Bloomberg

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