Walmart’s Sustainability Strategy“WALMART’S SUSTAINABILITY STRATEGY”Wal-Mart developed a new sustainability strategy to deal with the environmental issues the company caused. The strategy based on the efforts to develop and implement goals of zero waste, selling sustainable products and using 100 percent renewable energy. With this strategy the company not only aimed to resolve the problem of paying fines to state and federal regulators for its environmental damage but also change its bad reputation among customers. The company also realized its sustainability strategy creates cost advantages and this should turn out an opportunity to maintain its lower price strategy. Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track.
Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain, coordinate manufacturers and compete with the rivals. Company should find new ways to get greener supply chain with less capital, lower the operating costs and catch more competitive advantages in the market. Even though they identified some primary areas such as energy, waste and products, and decided to set environmental goals for reducing Walmart’s impact on the environment, they still need strong ideas more to reach those goals. They have to develop the green product lines, distribution channels; educate customers about importance of using these products; and create public awareness and reliability about Walmart’s sustainability strategy with having local, national and global level partnerships.
Walmart takes advantage of its efficient supply chain and keeps the products prices low. (cite!pg2-3) The company should find solutions to maintain this efficiency while applying its green mission to supply chain management in the future. Having energy efficient and environmentally friendly truck fleet can help to achieve this goal. Also, the company could establish partnerships with the manufacturers and retailers which aim the same efficient and environmentally friendly supply chain targets. For example, shared transportation, warehouses and infrastructure idea can open to discussion. This might provide to lower the costs including supply chain costs and serve the purpose of company’s sustainability
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Walmart is currently using a global plan to make sustainable food and products more sustainable. Walmarts are important part of this plan and a great project for global efficiency. They also have their own sustainability program, helping to solve our own problems with increasing food prices.
Walmart has an integrated food and beverage store. This allows the company to bring more and better products to customers. It allows consumers to save money and to stay independent by taking advantage of its own products and systems to do business without cost that is less expensive and easier for the consumer in general. Because the retailers in Amazon have built up a great business in this area as well, it can grow in efficiency and scale the company’s customer base and also raise further profits.
Walmart uses a network of suppliers. As the company is used to sourcing the supply chain, they have to be able to share solutions and do them jointly. This allows to the more than 20 Walmart stores in USA which is used to supply all the food produced by a Walmart.
Walmart also supports a program. It provides for their support and development for different areas of work such as the logistics field. They have a new initiative which is not part of their current program but rather is part of the next step toward sustainability and also helps with their environmental and sustainability. This initiative is supported by one of the company’s senior stakeholders,
Walmart is a small retail company like other large companies. This means that there won’t be any overhead for Wal-Mart. Instead of just making a profit when all its products are on the shelf, the company is still operating on an annual basis.
One of the main initiatives and policies aimed at reducing the cost of providing food is the Clean Supply Chain (CSC). The CSC aims to bring increased profits to their users and to help them meet their commitments of cutting waste and waste treatment and to reduce food waste. This effort could be a part of Walmart’s Green Alliance which includes the Sustainable Food Trust Fund, the CSC and the Sustainable Business Alliance.
These efforts make clear that Walmart is committed to making Walmart customers sustainable while taking steps toward making them more efficient. These activities are also part of their ongoing efforts to take all responsibility for how the products are made and put out to the public.
The Clean Supply Chain includes:
• Cleaning the Clean Container
• Cleaning the Clean Energy Supply Chain
• Cleaning the Food Processing Supply Chain
In addition to this, Walmart has also engaged the Cleaning Business Alliance (CBA), the National Restaurant Association (NRA), the National Nurses Association of Central America and several other advocacy organizations in their efforts to increase sustainability and clean food supply chain for their clients. The Cleaning Business Alliance operates an online campaign website with local and nationwide campaigns to encourage Walmart customers to sign up to the campaign system.