For reading week, I decided to do a road trip adventure down to the States, specifically New Mexico (although we did reach Texas). You can imagine the number of pit stops and the number of little towns we drove through on this trip. What I found interesting was that at every little town we stopped for gas, food or bathroom, there was, without a doubt, always a Wal-Mart. When’s the last time YOU went to a Wal-Mart? I hadn’t gone to one in probably over 4 years. You can imagine my astonishment when I entered this heavenly paradise of consumer goods; there was everything and anything you wanted. It’s like a Costco but 3 times bigger with 10 times more stuff. You need a water bottle? Wal-Mart’s got one. You need a few blankets? Wal-Mart’s got you. You need a tent? Wal-Mart has dozens. You need a pajama onesie? Wal-Mart will make you want one. That’s how I felt while we were making our away around this maze of “consumerism”. It’s incredible how much STUFF there is in Wal-Mart. The heart of consumerism can literally be summed up in one word: Wal-Mart.
It’s so crazy to see how much people consume. It’s all so convenient for them. This is speaking in terms of wholesaler to consumer. There are just so many options of goods for consumers to choose from and buy. People are presented with this consumerist paradise where all their desires can be fulfilled with a swipe of a card. We talked a lot about “convenience” as one of the 4 C’s instead of 4 P’s in the marketing mix (reminder: convenience takes the spot of place). But to what extent is this type of convenience good for society and the planet? Stores like Wal-Mart ends up encouraging people to consume more than they need, and when companies see a rise in demand or positive growth, they make more of that product, which then means increasing manufacturing and resulting in greater carbon emissions.
To add, sometimes these excess purchases end up being a useless object in your home, so during Spring cleaning, it ends up in the dump. Our landfills start to exponentially grow and soon enough, I’ll be walking besides mountain of e-waste instead of real mountains. What then?
Wal-Mart’s Supply Chain
Wal-Mart is actually popularly known for its incredibly efficient supply chain, with more than 11,700 stores under 59 company names, managing an average of $32 billion in inventory. They are committed to driving costs out of supply chains to enable consumers to “Save Money and Live Better.” (Quick thought: Live Better. Are we truly living BETTER from continuous excess consumption? ) Wal-Mart’s supply chain success comes from its: distribution practices, operations of their own fleet of trucks, and using technology for improvements for efficiency, inventory management and product forecasting. Majority of their success comes from the implementation of an efficient and cost-savings distribution method of cross-docking. 
They also build relationship networks with suppliers to improve material flow with lower inventories; their partnerships are what makes them a leader in operations management. Wal-Mart directly deals with manufacturers, giving the suppliers the power to manage their inventory in Wal-Mart’s warehouses (vendor managed inventory or VMI), hence, streamlining their operations.
Wal-Mart and Sustainability
While Wal-Mart actually has one of the most efficient and innovative supply chain management, how can we make effective distribution channels sustainable? I decided to research Wal-Mart’s sustainability goals to see if they had any and found they had three: “to create zero waste, operate with 100% renewable energy and sell products that sustain [their] resources and the environment.” Looking more into sustainability in their operations, their top initiatives were to reduce greenhouse gas emissions, reduce waste, and Project Gigaton. So, while Wal-Mart is making organizational moves to become more sustainable (which is great by the way), there’s still that issue of encouraging consumerism that calls for us to consume more than we need to, creating excess waste in the long-run. How do we balance this?
Whose problem is it that we keep consuming so much? Is it the consumer’s or the company’s? Or both? I think it’s both. As a consumer, I can – or should – choose how much I consume and be aware of what I’m consuming. Companies don’t necessarily have to cut the number of products they sell (although maybe this is the move?) but instead, should choose to present and expose me to more sustainable options.
How do we balance how much we want with how much we need? Where do desires come into place and can we curb those desires? What can massive retailers like Wal-Mart do to have a helping hand in creating a more sustainable world? This speaks to what we discussed in the beginning of the course: what roles do companies have in leading change? I think companies need to start acting by implementing better programs in their business model, as seen by Wal-Mart.
Wal-Mart’s whole business model is providing customers with quality products at low price with convenience; there’s nothing that can be changed about that. But something they are currently doing to be better is the way they do it, which I think is an interesting perspective on the role companies have in leading change. They’re not changing the business that is actually encouraging overconsumption, but instead mitigating that issue by working inwards on their operations. Good or bad – are we avoiding the core source or is this the best we can do right now?
Links:
https://corporate.walmart.com/global-responsibility/sustainability/sustainability-in-our-operations
https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmart