Wal-Mart is cracking down on its suppliers.
The world’s largest retailer sent a 10-page letter to its suppliers warning them of its new “zero-tolerance policy” if they violate global sourcing standards. It also requires more mandatory inspections and a pre-approval process.
The letter states that starting March 1, Wal-Mart will “terminate its relationship with any supplier engaging in unauthorized subcontracting” when it’s sourcing merchandise, according to Renee Dudley at Bloomberg.
Previously, Wal-Mart utilized a three-strike policy.