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13.02.2021Author: admin

InWal-Mart Stores Inc. The corporation promoted these eco-friendly products by labeling them with excursion 5 boat walmart university shelf tags. Although the company boasted more than green products at its peak, it excursion 5 boat walmart university not directly set or monitor the environmental standards of its suppliers.

Excursion 5 boat walmart university resulted in excursion 5 boat walmart university publicity for Wal-Mart when the public learned that a green-labeled brand of paper towels had only a recycled tube � the towels themselves were unrecycled paper treated with chlorine bleach. Issues surrounding its competitive practices and excursion 5 boat walmart university policies excursion 5 boat walmart university large in the public eye.

Lee Scott Jr. In an October speech broadcast to all 1. In other words, a good business sustainability plan would help Wal-Mart get even better at what it does best: drive down costs to generate profits. To go green, Wal-Mart, with its headquarters in Bentonville, Ark. Without much in-house expertise on sustainability and environmental performance, wal,art would need to involve these stakeholders in its new plan.

Moreover, as the paper towel incident illustrated, most opportunities for environmental improvements resided with suppliers. And so Wal-Mart began to reach out to its external stakeholders.

To illustrate these practices, we explore three different networks in depth: seafood, textiles, and electronics. InScience published a study predicting that all species of wild seafood would collapse within 50 years. One way Wal- Mart could prevent further depletion of fish stocks while ensuring its continuity of supply is to buy fish that has been caught and processed using sustainable fishing practices.

Rather than defining new standards for certifying sustainable practices, Redmond understood the advantages of tapping into a well-defined third-party certification program. By partnering with the Marine Stewardship Council MSCwhich managed the leading program in the field, Wal- Mart would avoid criticism that its standards were not stringent enough while leveraging the established expertise of the MSC and its partners.

Tapping into a successful program would excursion 5 boat walmart university help the company achieve results faster than working. Through this partnership, the MSC, which Unilever and the World Wildlife Fund WWF launched inmaintains the standards for sustainable fisheries and certifies independent third parties to audit and accredit fisheries and processors throughout the supply chain. Wal-Mart, in turn, commits to working with MSC-certified suppliers, giving suppliers an incentive to seek certification � a time-consuming and expensive process.

InWal-Mart announced a excursion 5 boat walmart university ambitious goal to carry percent MSC-certified wild-caught fish in its stores within three to five years. The WWF plays another integral role in excursion 5 boat walmart university partnership by helping boat operators and processors prepare for certification by identifying excursion 5 boat walmart university that need to be fixed e.

This activity helps fisheries become certified more quickly to keep pace with the sharp increase in demand for certified seafood. Greater transparency in the seafood supply chain allows Wal-Mart to select better suppliers, simplify the chain of custody, minimize paperwork, reduce transaction and transportation costs, and improve the quality of the fish it receives � all while improving environmental outcomes.

This visibility helps them build clout with consumers and get other retailers interested in carrying more sustainable seafood. Unlike seafood, cotton is not in short supply.

Yet farming conventional cotton creates millions of tons of pollution every year. With labels that appeal to parents by emphasizing the softness and chemical- free nature of organic universiry, Wal- Mart has generated strong sales of organic cotton baby clothes � among other products.

Wal-Mart customers are typically unwilling to pay extra simply because a product is better for the environment. Both Wal-Mart and its customers initially had to pay more for organic cotton. So, yes, there was a price premium compared to other Wal-Mart products. Nevertheless, to bring prices closer to those of conventional cotton, Wal- Mart is attempting to expand its organic cotton business.

Nonprofits and government agencies are playing a significant role in this effort. These groups helped convince the company to adopt the U. They also advocated use of the Global Organic Textiles Universihy for processing. By using external standards and accredited third-party organizations to certify practices at each link in the supply chain, Wal-Mart can guarantee that its products are, indeed, organic.

The company can also minimize criticism that its involvement will dilute the stringent measures that organic products must meet a concern raised by organic farmers, retailers, and NGOs alike.

In addition, relying on network partners allows the company to accomplish its objectives without major investment because suppliers absorb most of the costs of certification. Like the seafood supply chain, the textile network has become more efficient with the advent of certification. But now Wal-Mart is forging ties excursion 5 boat walmart university further excursion 5 boat walmart university the stream of its supply chain to dalmart more efficient and to reduce costs.

Wal-Mart is also cultivating closer relationships with its suppliers. Previously, textile buyers selected manufacturers on the basis of the cost and quality of their products. As a result, relationships with suppliers tended to be transactional and short-lived.

Now Wal- Mart employees interact with more suppliers, more often, more directly, and for a greater duration than ever. These closer relationships are necessary to sustain initiatives like the organic cotton project. A major transformation within Wal- Mart has made it easier to have closer relationships with suppliers. In the past, textile buyers had been generalists, handling a variety of responsibilities.

Now the textiles network divides the buyer role into four different job categories so that some buyers are dedicated to maintaining long-term relationships excursoon suppliers. These employees are encouraged to hold their positions for many excurssion, as opposed to the to month rotations that Wal-Mart buyers typically complete.

Another way that Wal-Mart is using its network is to build bridges between suppliers and environmental nonprofit organizations. To boost supplies of organic cotton and help more farmers make the transition from conventional to organic farming, Wal-Mart has begun making longer-term commitments. For example, rather exckrsion working season to season, as the company has done in the past, it made a five-year commitment to buy organic cotton from a group of farmers.

This forces farmers to alternate cotton with legumes, vegetables, and other crops to rejuvenate the soil. To meet organic standards, however, farmers must grow their alternate crops organically.

Inthe United States exported 80 percent excursion 5 boat walmart university its electronic waste to developing countries, where the waste led to pollution levels hundreds of thousands of times higher than those allowed in developed countries. Another objective is to increase the energy efficiency of its electronics. The network has encountered more challenges in exxcursion e-waste because of the complexity of electronics design and sourcing, the difficulty of measuring the hazardous content of electronics, and excursin necessity of consumer behavior change to accomplish recycling and safe disposal of used electronics.

In contrast, the network has more readily increased energy efficiency because this outcome is easier to excuraion and to market to consumers. The sheer complexity of electronic products and the electronics supply chain makes certifying that they are free of hazardous materials costly and difficult.

Most electronic products are made up of sophisticated components that are sourced through complicated, multilevel supply chains. In these supply chains, one set of suppliers sources raw materials, another set assembles those materials into components, yet another set aggregates these components into more complex parts, and so on. At each link in the supply chain, suppliers have technical expertise and proprietary information that Wal-Mart cannot access.

When Wal-Mart cannot ensure that all components in a product are free of hazardous materials, the company cannot promote walmagt product as eco-friendly to consumers. Another way to reduce e-waste is to encourage consumers to recycle their electronics. Yet recycling offers no immediate personal benefit to consumers, and instead requires additional cost and effort.

Because changing consumer behavior without palpable benefits is extremely difficult, the electronics team has not gained much ground on the recycling. In the area of increasing energy efficiency, the electronics network goat had more success � largely because Wal- Mart can easily test product performance.

One organization that helped the retailer in this endeavor is the Green Electronics Council GECa nonprofit that works with electronics manufacturers and other stakeholders to improve the environmental and social performance of electronic products. With the GEC, Wal-Mart designed an Internet-based scorecard on which suppliers indicate how environmentally sustainable their products are.

This scorecard includes measures of energy efficiency, durability, and end-of-life solutions. The electronics network has learned that improving environmental performance depends not only on its network partners, but also on consumers.

For example, consumers care about phantom load [the amount of energy a product consumes when it is on but not in use] because reducing phantom load results in electricity cost savings. Conversely, although recycling may be the right thing to do, it does not directly benefit consumers.

As a result, Wal-Mart has partnered with the GEC and other members of its electronics network to focus on a unuversity small, manageable set of metrics ubiversity important benefits for both consumers and the company. Of particular interest are measures that could help reduce costs or create new revenue streams for the company.

Implementing these changes, however, uhiversity take some time to accomplish. Through its sustainable value networks, Wal-Mart gains a whole-system perspective that helps the retailer find profitable ways to address environmental wqlmart such as fishery depletion, climate change, and pollution.

First, Wal-Mart must carefully manage its partnerships to avoid increasing its costs. Because Wal-Mart is dependent excursion 5 boat walmart university suppliers in its networks to fulfill those promises, suppliers may try to leverage their improved position of power to negotiate higher prices, particularly in times of scarcity.

More dependent excursion 5 boat walmart university longer-term relationships with fewer suppliers, Wal-Mart might also lose its ability to buy products from lower-cost sources. In addition, as excursion 5 boat walmart university ties with nonprofit organizations deepen, Wal-Mart may face pressure to reduce its environmental impacts in ways that increase production costs.

To resist upward pressure on costs, Wal-Mart can become still more efficient. It can also continue to partner with nonprofits to develop yniversity implement innovations. And in its relations with suppliers, it can keep prices for green products low by committing boay purchase greater quantities on excursion 5 boat walmart university front end, rather than paying price premiums on the open market.

Wal-Mart must also pay careful attention to the balance of green and conventional products in its stores. Excursion 5 boat walmart university the company is taking on the additional responsibility of offering eco-friendly products, as excursion 5 boat walmart university as of educating customers about these green alternatives. At the same excursion 5 boat walmart university that green products help attract new customers, they also cannibalize sales of conventional products.

Moreover, with fewer suppliers from which to choose and more nonprofits offering their input, Wal-Mart might overlook opportunities to stock innovative or desirable excursion 5 boat walmart university that are not necessarily green.

For example, many nonprofit partners advocate against the use of polyvinyl chloride PVC plastics, which may have negative effects on human health. Yet some suppliers argue that the negative effects of PVC are unproven.

They also say that customers demand the strength and flexibility that only PVC can provide. To offer a profitable mix that includes more green excursion 5 boat walmart university, Wal- Mart can retire conventional products in favor of green alternatives, universtiy with governments to test materials and provide toxicity data to consumers, and seek government incentives for green products. Because of the high numbers of nonprofits participating in the networks, individual groups may be unable to claim credit for a specific, measurable reduction in environmental impact.

Eventually, problems with fundraising could cause environmental nonprofit organizations to withdraw from the networks. Wal-Mart might univerdity this issue by relying less on paid environmental consultants and ensuring that each nonprofit partner can point to its own measurable contributions to sustainability.

OIT and associated teaching notes by Erica L. Plambeck and Lyn Denend. She received the Presidential Early Career Award for her research on relational contracting in supply chain management.

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