The move to buy more goods directly from factories comes as Wal-Mart, hampered by sluggish sales and profits, looks to squeeze costs out of its supply chain. “We have made a business decision to transfer certain sourcing functions for Wal-Mart in-house, and as such will work collaboratively with DSG to ensure a smooth transition over the next several months,” Wal-Mart said in a statement. Wal-Mart said it would continue to use DSG for sourcing products for Sam’s Club, a unit that sells products in bulk and competes with Costco Wholesale Corp (COST.O).