Companies around the world are focussing on incorporating sustainability policy and practices in their supply chain (Ageron et al, 2011). The topic of sustainability has been of great interest for the last decade and businesses have adopted a certain level of commitment towards sustainability practices (Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply chain model.
This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is ...view middle of the document...
Wal-Mart today consists of a wide range of products such as grocery, dairy products, baby foods, variety electronic products, health and wellness products including pharmacy, stationary, jewellery, automotive accessories, apparel, house wares and several own private labelled store brands. Wal-Mart as of now employs over 2.2 million people all over the world (Wal-Mart Corporate, 2013).
2.1 Wal-Mart Issue with Green Sustainability.
In the United States, Wal-Mart received a positive feedback and press review for promising to go green, as such the company issued a Global Responsibility Report in 2005 and announced to reduce emissions in its supply chain as well as expand the usage of renewable energy. However Wal-Mart's promises remains far from reality (ILSR, 2013).
2.1.1 Increase in Greenhouse gas emission
A report from the Institute for Local Self Reliance, described Wal-Mart's greenhouse gas emission to have grown since its promise to reduce emissions in 2005, in addition the percentage of energy it consumes from renewable sources still lags far from its promises. Stacy Mitchelle, a senior research scientist at the ILSR said "Wal-Mart has a highly unsustainable business model, built on shipping goods for long distances, selling large amounts of very short lived products, and big sprawling stores that entails lots of driving." It is clear that Wal-Mart is not doing anything to address such needs on high priority and is unwilling to address such core parts of their unsustainable business model (ILSR, 2013).
Figure 1. (ILSR,2013)
Wal-Mart's green house gas emissions have surged from 18.9 million metric tons to 21.5 million metric tons in 2013 as seen in figure1. This amount of emissions accounts to be qualified as one of the largest polluters in the United States amounting to more pollution than Shell oil Company and CONSOL Energy. This is mainly because of its proclivity towards building new structures and its long distant shipping policies (The Atlantic Cities, 2012). The report also advocates the fact that Wal-Mart lags behind other corporations with respect to the percentage of power it utilizes from the renewable sources. Although Wal-Mart has taken adaptive measures to sustain their energy sources by using green power generators it still lags behind companies such as Whole Foods.
2.1.2 Excessive Land Usage
It can be noticed that even though Wal-Mart are making an attempt to work towards sustainability their underlying business model has been proving hazardous towards building a process towards sustainability of the environment and the communities. Wal-Mart has over twenty-acre parking lots, 200,000 square-foot stores which require several miles of travel to get to. To add to this they have several hundred abandoned facilities left behind (The Atlantic Cities, 2012).
The company seems to be moving towards opening smaller stores in the urban markets to expand their business because they have saturated the exurbs. They have...