Don't Get Locked into Suppliers
When it came to Walton remaining true to his vision and purpose for Wal-Mart (WMT), he kept a vigilant eye on everywhere he could cut costs to reach the continuous goal of "always low prices."
It was the same with his suppliers. Today you hear it sometimes said that Wal-Mart has strong-armed suppliers to wring cost concessions out of them, yet in the 
beginning days of Wal-Mart, they had the same problem with suppliers toward them.
The chief supplier of the company at that time instituted tight controls that they wouldn't move on that eventually brought Walton to the conclusion that he had to shop elsewhere. In his search he was able to find suppliers that would offer products for less. He dropped his old supplier and embraced the new.
This is another way to look at operating within the parameters of the purpose your business or department exists. While all companies should look for healthy ways to cut costs, with Walton and Wal-Mart it was its reason for existence, which meant up and down the entire operations of the company he was relentless in looking at running the company more efficiently.
While we like to work with partners over the long haul, we can't get so locked into the professional relationship that we let it adversely impact our businesses.
We can't maintain these relationships when it starts to hurt our businesses or force of off of who we are. It's not just connected to cost cutting, but any area that suppliers are part of the process.
There have been times when businesses have, through misguided loyalties, caused their service to the customers to suffer because the supplier couldn't offer what was needed to keep with the stated purpose of the company; whether it was through pricing, availability of product, delivery schedules or support. If they can't offer solutions that fit in with the company's purpose, then it is time to look for new suppliers that can.
Other Walton Sources:
The Most Underrated CEO Ever The legendary Sam Walton
Sam Walton: The Power of Persistence
Sam Walton Business Quotes for Ya
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