Supply Chain + Sustainability = Walmart?

On October 25th, 2012, retail giant Walmart announced new plans to increase the sustainability of its supply chain, located in U.S., China and various other places around the world. Why did I find this interesting? Because it explores two classes of content: supply chains and sustainability.

Considering the international scale on which Walmart operates, it is no simple task to manage the supply chain of millions of products to be manufactured, collected and distributed to twenty-seven countries across the globe. This is no new commitment from Walmart, who previously began focusing on emission reduction since 2005. Launched in 2009, the Sustainability Index aims to maximize the environmental friendliness of its products and suppliers.

To carry these operations out, Walmart has awarded a $2 million grant to The Sustainability Consortium, an independent global organization which strives to build the bridge between the production of goods and environmental sustainability. The TSC has recently announced its  expansion into China, where large manufacturers for global supply chains are located. There,  the TSC will assess the current systems, form relationships with Chinese manufacturers and retailers and accumulate information for future improvements.

So what does sustainability mean for the supply chains? According to the Global Responsibility section of Walmart’s website, the company will focus on environmental sustainability – which focuses on three major goals: 100% renewable energy, zero waste and sustainable products – and ethical sourcing – collaborating with governments, NGOs and other retailers to provide dignity and respect for its workers. Ideal goals for an ideal world.

You said it, Walmart. Now all that’s left is walking the talk.

 

Sources:

Official Walmart website: http://corporate.walmart.com/

Walmart locations around the world: http://corporate.walmart.com/our-story/locations

Walmart – The Sustainability Index: http://corporate.walmart.com/global-responsibility/environment-sustainability/sustainability-index

The Sustainability Consortium: http://www.sustainabilityconsortium.org/

Walmart – Global Responsibility: http://corporate.walmart.com/global-responsibility/

Walmart – Environmental Sustainability: http://corporate.walmart.com/global-responsibility/environment-sustainability

Walmart – Ethical Sourcing: http://corporate.walmart.com/global-responsibility/ethical-sourcing

Greenbiz’s article “Walmart commits to scale sustainability of global supply chain”: http://www.greenbiz.com/news/2012/10/25/walmart-commits-scale-sustainability-global-supply-chain

TSC’s article on expansion into China: http://www.sustainabilityconsortium.org/consortium-news/the-sustainability-consortium-continues-global-expansion-plan-operations-begin-in-china/

Photo from here.

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