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Walmart Sustainability Strategy (C)
Walmart Sustainability Strategy (C)
INTRODUCTION
BY 2007, WALMART WAS SOURCING APPROX. $750 MILLION IN SEAFOOD
ANNUALLY
WALMARTS SEAFOOD BUSINESS WAS GROWING ROUGHLY 25% PER YEAR EVEN
WORLDS FISHERIES OUTPUT HAD DECLINED TO 3% OF THE YEAR-1900
(ACCORDING TO PETER REDMOND)
PETER REDMOND, VP FOR SEAFOOD AND DELI, BELIEVED SEAFOOD SUPPLY
CONTINUITY WAS THE SINGLE GREATEST LONG TERM ISSUE
WALMART ADOPTED SUSTAINABILITY STRATEGY IN 2005:
SUPPLIED BY 100% RENEWABLE ENERGY
0% WASTE
SELL PRODUCTS THAT SUSTAIN PEOPLE AND THE ENVIRONMENT
CURRENT PROCEDURE
HEADED AND
GUTTED FISH
SENT TO CHINA
THAW, FILLET,
PACKAGE AND
REFREEZE IN
PLANT
50% CONVERSION
EMPLOYEE WAGE
IN CHINA- $200
FISH FROM
DIFFERENT PARTS
AND TIME CAN BE
PROCESSED
ALTERNATIVE
PROCESS FISH IN ALASKA
EMPLOYEE WAGE- $2000
HIGHER PROCESSING COSTS DUE TO UNCERTAIN SUPPLY AND ONLY SPECIFIC
SUPPLY PERIOD OF ALASKAN SALMON
PROCESSING DELAYS IN PEAK SEASON CAUSING DEGRADED QUALITY
TRANSPORT COSTS TO MAINLAND US
DISCUSSION
HOW SHOULD WALMART RATIONALIZE ITS
SEAFOOD SUPPLY CHAIN TO REDUCE
COSTS AND PROMOTE SUSTAINABILITY?