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compare; second, outright purchase, and fixed-time settlement. As the vagaries of the retail market, in order to avoid business risks, many businesses have adopted consignment mode of operation, and transfer the risk to the manufacturers, but this will increase the retail purchase cost. While the Wal-Mart has implemented the policy of outright purchase, and the fixed settlement payment, it is never to delay. Although this bears some risks of the backlog of goods and poor sales, it can greatly reduce the purchase cost, and win the trust of suppliers; third, to adopt a cooperative attitude with suppliers. Wal-Mart as large purchases, generally purchases directly from the factory, and maintains long-term cooperation relationship with suppliers. Through computer networking, it can achieve the information sharing, and then the suppliers can understand Wal-Mart's sales and inventory in the first time, and timely arrange production and transportation. As the efficiency enhancement, suppliers reduce costs, Wal-Mart will be able to derive benefits and profit to customers. Under this cooperation model, all the suppliers, Wal-Mart and customers are the winners.

3.2 Logistics cost control
It is an important symbol to measure the level of retail business management, also an important factor that affects the results of the retail business. Fast information feedback and efficient logistics management system allow goods inventory to be greatly reduced, and accelerate the cash flow, then lower the business cost. Wal-Mart in logistics management also let peers catch up, Wal-Mart has established the strong distribution center system, and has the largest private satellite communication system and the largest private fleet in the U.S., and all branches’ computers connected to the headquarters, distribution center from received orders to the shop to purchase the manufacturer and delivery needs only 2 days, while the other two large U.S. discount stores Kmart and Daggett will need 5 days. Wal-Mart's logistics cost rate lowers 60% than the latter.
Wal-Mart forces suppliers to achieve the lowest cost to improve its profitability, and builds a system of linkages with suppliers, which assists suppliers to reduce product costs, such as suppliers of labor costs, production sites, inventory control and the questions and records of management force them to process reengineering and improve price-performance ratio, also make them stand in the same angle with the Wal-Mart that is committed to reduce product cost and operation of supply chain costs. Wal-Mart achieves a complete low-cost positioning and the large bulk purchases of global marketable category, in which 90 percent of its merchandise purchased directly from the manufacturers, forms more than 35% of own-brand products, so that distribution costs lowers down 3% of total sales with the formation of absolute advantage.

3.3 Other cost control
Wal-Mart's cost control is reflected in any small parts. In the all levels of office by Wal-Mart managers, it can not see the expensive office supplies, furniture and carpets, there is no luxury decoration. Wal-Mart often encourages employees to try to make plans to save money, and continues to reward and promote those creative staffs in the loss of control, goods display and merchandising. Wal-Mart simply decorated with large packaged goods, while the rental shop will not choose the expensive commercial downtown area.