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| BUSI1150: E-Log & Int Sup Chain Mgt 15c
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How should Wal-Mart rationalize its seafood supply chain to reduce costs and promote sustainability?
In‐depth analysis on the case ‘Wal-Mart’s sustainability strategy (C): Inventory management in the seafood supply chain’. And to analyze ‘How should Walmart rationalize its seafood supply chain to reduce costs and promote sustainability?’
According to (Anon, 2012) Wal-Mart Stores Inc. is an U.S based multinational retailer that runs chain of large discounted departmental stores & warehouse store and was founded by Sam Walton in 1962 and it was labeled Walmart in 2000. It’s headquarter is located in Bentonville, Arkansas. In the former year (2011) it generated revenue of US$ 421.849 billion. It has around 8500 stores in 15 countries, under 55 different names. It operates as Walmex in Mexico, Asda in United Kingdom, Seiyu in Japan, Sam’s Club in North America, Walmart itself in U.S.A & in India as Best Price. Walmart is also the world’s largest private employer with above 2 million employees & also the biggest retailer in the whole world. Walmart had also to face severe competition from its rivals in numerous parts of the world. Sea-food is a key aspect of Walmart. As it is a largest sea-food retailer in whole world, the company is facing certain drawbacks & challenges of cultivating sea-food sustainability at a low cost. There is an upward trend on the demand of sea-food which is 5 times more than during the last five decades. This resulted into fishing of three quarters of the world fisheries at sustainable limits or crossing the limits. Walmart is also working with Marine Stewardship Council (MSC), World Wildlife Fund (WWF) and Conservation International (CI) for producing sustainable sea-food. All these organizations as a one are trying to motivate the sea-food suppliers to build again the stocks, promote plants that bind together fishery management practices and encourage reducing impact on the nature to support the ecosystem as well. The main aim & objective of this report on Walmart sea-food supply chain is that how Walmart should rationalize its value chain to reduce cost and promote sustainability 2. Challenges of Wal-Mart’s supply chain
According to (Denend, 2010) Wal-Mart’s income was around $750 million annually in sea food during 2007. Though in 1900 the output of world fisheries decreased to three per cent, Wal-Mart’s sea-food business was booming at approximately 25% every year as a result the continuous supply was alone the biggest challenge faced by the sea-food network. One of the challenges for the company to sustain strategy was to get its suppliers to take up the Marine Stewardship Council’s certification program because then by end of 2011 the company would be able to sell 100 percent MSC certified wild caught sea-food. Also, to achieve the goal of selling only MSC certified wild fish; Walmart will have to increase the number of fisheries & supplying plants through its suppliers as a result it will become more complex, time consuming & increase more efforts...
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