September 22, 2003

Big-name suppliers set up shop in Arkansas

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In the process, they are creating a nucleus of corporate America and white-collar life in a corner of Arkansas long known for little more than poultry farms and Civil War history.

They also are reshaping the retail-business relationship, as companies take away concepts and practices that change how they do business internally and with others.

Just as some locals bristle at rising property taxes and increased car traffic, some industry experts worry about a power imbalance, with Wal-Mart at the apex. So far, those concerns are doing little to moderate a missionary-life fervor among those absorbing the Wal-Mart way of business.

"This has helped us reinvent our company," said Tom Muccio, president of global customer teams at Procter & Gamble, the first supplier to open an office in the area, in nearby Fayetteville in the late 1980s. Now it has more than 200 people here.

Over the past few years, P&G has established offices near some of its other key retail customers such as Issaquah-based Costco Wholesale. It has begun duplicating initiatives created with Wal-Mart, such as shipping display-ready cases to cut down on store labor costs.

The burgeoning vendor community is a testament to the enormous power of Wal-Mart Stores — which saw $244 billion in sales last year — to attract the corporate elite to a region still perceived as a backwater.

Posted by Norm M. Wada at September 22, 2003 9:49 AM
Related Categories: Quadrant - Economic | Theme - 'Wal-Mart'inizing the World'


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