How should Wal-Mart rationalize its seafood supply chain to reduce costs and promote sustainability?
Walmart has a large retail seafood business and it is always a challenge to reduce cost and promote sustainability. With upward trend for the demand of sea-food, depletion of the seafood supply is inevitable unless Walmart have a deep engagement of their supply chain. One strategy that Walmart wants to promote to their suppliers is for all of them to take up the Marine Stewardship Council’s certification program. This process will be time consuming, expensive and complex. The depletion of some fish poses a threat to Walmart and its seafood supply chain.
Many challenges exists that will lead to indirect or direct increases in the cost
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However, to reduce cost and promote sustainability a deep engagement with every sector of the supply chain is needed. While Walmart can promote sustainability with the MSC certification program, as mentioned it is expensive and takes one year to complete. Therefore, Walmart can potentially establish their own quality control check. This will reduce cost while retaining sustainability of their supply chain. It will be cheaper and should take less than the MSC certification. Consumers are price sensitive. Therefore, it is important that Walmart retain reasonable prices for their fish. With such an internal program, it will be adventageous over the MSC certification because Walmart will be able to retain their affordable prices of their seafood while promoting sustainability.
Walmart can try to reduce the cost of the MSC certification. Boat operators and fishermen face direct and indirect cost for the certification. Therefore, Walmart can subsidize part of this cost of the certification to ensure that they can have a sustainable supply of certified fish.
These fishermen who are perhaps the first in line of the supply chain would know best how to promote sustainability and save these seafood from extinction. However, many of their may lack the expertise or capital to take these initatives. Walmart can have programs where they reward their suppliers who come up with innovative ideas to promote sustainability. These ideas should also be supported and funded by
Since Planet Shrimp is particularly passionate about its vision, alignment with strategic vision is the rated the highest out of all the decision-making criteria. It is the most feasible option because it requires working with only a select number of locations, which is most cost-effective. Moreover, Planet Shrimp will be able to sustain demand; since they are only producing a limited amount of shrimp right now, they should focus on ensuring that they can maintain a steady supply to build a strong foundation on which to further expand their network. Working with stores who are already known for their sustainable values ensures that the Planet Shrimp brand reputation is maintained. Those who understand the importance of Planet Shrimp’s values will likely be the “early adopters” and champions of their product, marketing their shrimp through word-of-mouth and organic marketing. Although there is a market within large chain grocery stores for sustainably sourced seafood (such as Loblaws), these grocery stores do not have as much of a focused message of sustainability as smaller, independent stores. Thus, Planet Shrimp’s brand identity has the potential to be diluted amongst the greater offerings of large chain stores.
In order to receive the best prices for the highest quality fish products, I will equip myself and my buyers with seafood handbooks, seafood trade journals, and reports on current seafood pricing. Websites such as www.seafood.com and www.Sea-Ex.com will give us daily news and pricing data for the seafood industry. I would also get in touch with the Food and Drug Administration Office of Seafood Safety to request a list of all approved fish suppliers in my local area, as well as, the East Coast. To get the best prices and best quality at the same time, we will create statements of quality to give to our suppliers so they can contact us each time they receive products with our specified standards of quality (Feinstein & Stefanelli, 2012, p464). I will periodically evaluate our suppliers and supplier services and compare to the competition so that I am ensured that I have trustworthy suppliers who continue to offer me the best deals, optimal delivery schedules, and generous credit terms.
Walmart is looking to go for sustainability in their everyday activities. They are striving to operate by utilizing renewable energy, to bring down the level of wastes in their global operations and sell sustainable products. They are also taking steps to counter climatic changes. They are also ensuring that the safety and wellbeing of their workers are considered in their supply chain. They are looking to improve recycling through education and infrastructure improvement.
The Sustainability 2.0 - Take - Seafood video has three Walmart leaders (Rupert Howes, Peter Seligmann, and Trevyr Lester) discussing the company's goal to have their wild caught seafood certifications from MSC and ACC by 2011. It begins with Mr. Howes talking about seafood is our primary source of animal protein and the demand for it has increased while seafood has decreased because of fishing practices. For this reason, Walmart saw a great opportunity to make a change in the seafood industry by improving their efficiencies. They are the largest retail purchaser of wild caught seafood, and the firm worked with fisherman organizations to develop the Sea Food Network, which has become a resource for other vendors to use.
The Walmart Sustainability 2.0 Goal video starts with introducing Doug McMillion President & CEO of Sam's Club discussing the company's sustainability areas of interests: eliminating waste, being powered by renewable energy, and selling more sustainable products. In fact, Walmart ask how they can run their business more efficient by using energy sources that do not pollute air, water, and soil? However, the company is moving in the right direction on sustainability, but there is more work required because they have to start looking at the entire product's life cycle since it affects the company's earnings. Notably, Walmart is a profitable organization, and they would like to continue as such, but sustainability needs to be a part of their continuous
Wal-Marts recent sustainability will make a change in stakeholder orientation if they continue to follow through on their promise they made in 2005 - “CEO Lee Scott set three aspirational sustainability goals for Walmart: to create zero waste, operate with 100 percent renewable energy and sell products "that sustain resources and the environment” (Makower, 2016). If you go to walmart.com and search sustainability, they are advertising exactly what the CEO has stated. This will hopefully help lower their costs’ in other ways besides having their suppliers lower their costs’ to keep Wal-Mart as a buyer. This is most ethical thing to do for the stakeholders, which in turn will help build a better reputation for the company.
We could create metrics and share best practices so our suppliers could make products that rely less and less on carbon-based energy" (Lee Scott, President and CEO of Wal-Mart Stores, Inc., 2007).
People like to think of Walmart as a store with many varieties, because you can get almost anything for low prices. Although Walmart is an American retail corporation, there are many branches of Walmart, not only in the United States but also other places around the globe, making it the largest company by revenue. Because of its variety in products and worldwide locations, Walmart has a significant effect on society, both economically and most importantly the impact of environmental issues. Like many other global industries, Walmart has developed strategic ways in the sustainability of the environment not only for the environmental issue we face, but also a market strategy which forms a connection between society and businesses.
This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is related to Wal-Mart's failure to develop a Green
Perhaps this is giving Walmart a free ride in the media/marketing as being sustainable without any parties doing their due diligence to verify the actual numbers. As Senge explained, perhaps “Walmart is using going green to offset negative press for treatment of its employees” due their recent lawsuit losses and settlements (Senge, 2010, p. 114). Although Walmart should be commended for its sustainability portfolio, I believe the results of their goals need to be looked at from proportional aspect as well as how/where Walmart sources their products.
Wal-Mart is a truly global corporation that runs chains of large discount department and warehouse stores across the globe. Wal-Mart is designated by Forbes as the world's 18th largest corporation; Wal-Mart is also the world's biggest private employer in the world, boasting over 2 million employees, making it the world's largest private retailer (Faber, 2012). Wal-Mart emphasizes that its vision is simply saving people money so they can live better, and Wal-Mart leaders have made it their mission to embed this vision in into all aspects of the business. Wal-Mart's business model was developed in a manner that respects customers, shareholders, associates and communities around the world. Its stated philosophy and overall business strategy relies on a simple idea created by founder Sam Walton: offer shoppers lower prices than they can get anywhere else, and it is this basic strategy that has shaped Wal-Mart's culture and driven the company's growth to its position of power within the world market (Walmart Corporate, 2012). Yet Wal-Mart has come under intense criticism for some of their operating practices in regards to their employees and their environmental record. This paper will analyze Wal-Mart's performance over the last couple of years.
Second, Walmart’s more recent activity also points to effective CSR practices. These efforts have included a reduction in greenhouse gas emissions along its entire supply chain, ceasing business with factories that violated labor laws, as well as “financial contributions in kind, such as investments in education, health, commitments to fight hunger, support for local farmers and access to healthier and affordable food”
In 2005 the worry with the environmental aspects changed the way the Walmart works, in 2009 it announced plans to create a worldwide sustainable product index. By 2011, it started to think carefully to the nutritional problems, developing programs to reduce the amount of fat, sugar and salt of its own brands and giving advantages to the suppliers who works with whole foods and vegetables. In the same year Walmart put available its home delivery system ordering by the website.
For facts about sustainability, Woolworth’s is considered as a major investor in the communities of Australia and New Zealand. It makes contributions back to the economy by creating jobs, injecting more innovative products into economic flow and encouraging productivity. From a social point of view, the training and educational development programs are provided by Woolworth’s to thousands of its employees, bringing up the food quality standards for the community, and direct
Walmart has initiated its sustainability efforts aimed towards hundred percent renewable energy, zero waste and product sustainability. The company has successfully identified its pain points and already achieved success in achieving quick internal process improvements. The company also envisioned and established broader strategy to make sustainability a core of its operations and business model. In my role as the leader of the global sustainability effort, I will identify untapped potential of the sustainability initiative and