Wal-Mart China: Sustainable Operations Strategy

Wal-Mart china Sustainable Operations Strategy1. Explore through the literature the concept of (Business) sustainability and explain it briefly. in like manner using references on Operations Strategy describe what sustainability in operations strategy means.Traditional address management models tend to exclusively focus on production costs, whilst ignore products cost of design, demotement and customers using. In other words, the dividing line concern visible costs and ignore intangible costs that means the desolation of the surrounding environment such(prenominal) as the cost of social obligation during production the process. Thus, initiatives want to win the competition, they must change the traditional model of cost management and maintain the lowest cost in the life cycle of product. A broader perspective of product life cycle cost which includes social responsibility cost should be a part of barter operations strategy or should be a part of business sustainability str ategy.Business sustainability is a business approach have policies of environmental and human rights which means the business creates long-term shareholder value from no negative influence opportunities and managing risks on global or local society, environment, community and economy 3. Smukowski 2 claimed that the concept of business sustainability is a prior plan of the long-term viability and optimizing resource needs, reducing environmental, energy or social impacts which admit not damage the profitability of business. It hobo be summary from preceding(prenominal) that sustainable business means the enterprise consider not sole(prenominal) financial factors, precisely in like manner to a greater extent comprehensive concern the impact of environmental and resource efficiency.2. Discuss what Sustainability means to Wal-Mart, Wal-Mart China, and Wal-Mart Chinas current and potential customers. What would you see to be a balanced definition of sustainability for the busines s?Answer(1) Wal-MartIn order to run business sustainability, Wal-mart combined value and service concepts of innovative operational strategies and set lead sustainability objectives including more efficiency of vehicle quiver, reduce waste and energy relieve. First of all, to combine value and service of its innovative operational strategies involve 14 SVNS recognize Wal-mart became the largest organic seller and the largest organic cotton purchaser. In addition, Wal-mart similarly through its integration of sum up chain and ROHS compliance which including supplier or vendor selected and scored to chance upon business sustainable aims. For instance, Wal-mart sold 110 million compact fluores cent dizzying successful with its partner called GE.(2) Wal-Mart ChinaIn term of Wal-Mart China, its through 5 SVNS reach business sustainable. First of all, the strategy of sustainable store and operation erect help Wal-Mart China reduce cost and decrease Wal-Mart Chinas footprint of op erations. Secondly, to develop sustainable products such as food, electronic textiles and product promotion extend its business sustainability supply chain and compliance. Thirdly, to enhance efficiencies of its supply chain not only reduce cost notwithstanding also footprint of whole chain. Fourthly, to make a better communication with its stakeholders is another critical issue of its business. Fifthly, Wal-Mart China also through share learned experiences with its supplier or vendor to make its sustainable supply chain more successful. Sixthly, Wal-Mart China employed T5 energy saving light bulb and double sides copy to decrease its energy waste of its business. Lastly, Wal-Mart China promotes the product which is an energy efficient bulb for its customers that is also an activity of business sustainability.(3) Wal-Mart Chinas currentWal-Mart Chinas sustainable logistics eyes helped its reduce 31 tons of CO2 emission per year. For example, T5 light bulbs can sustain 20 to 30 percent energy per daytime in warehouse areas and resting places and to use solar energy and wind power generator can 7,300 kilowatt hours per year. In addition, Wal-mart promote its customers to use reusable obtain bags through about prizes including special express checkout line. Finally, Wal-Mart Chinas merchandizing group still continuing builds sustainability measure tools for supplier selection and nigh on going military rank of purchase quantities which can enhance its suppliers efficiency of sustainability. Wal-Mart China also continuing creates innovative initiatives of sustainable and implements best practices for communicating to all of its stakeholders.(4) Potential customersIf customers can contract Wal-marts sustainability products which not only improve the personal activity of environmental but also protect the Earth. Although the sustainability products price might naughtyer than others, it still have some advantages such as reduce cost of electronic, long ti me for use and non pollution. According to the article, T5 energy saving light bulbs could save about 20 to 30 per cent energy which means its can also reduce the cost of electronic of 20 to 30 per cent.3. Identify the distinguishing features of Wal-Mart Chinas distribution system and operations. Explain how it achieves comparatively high availability with similar levels of rip to other companies.AnswerIn order to provide high bore products for customers and the commitment of businesss operations strategy, Wal-Mart China combines their high employee productivity, latest technology, experienced co-transport sector, an efficient private truck fleet and distribution center operations which not only is an advantage of Wal-Mart Chinas inventory management but also increase efficiency of loading and delivery.According to the article, there are some advantages of Wal-Mart Chinas distribution center(1) Sustainable logistics centersFirst of all, Wal-Mart Chinas distribution center uses T5 light bulbs which can save 20 to 30 percent energy per day in warehouse areas and resting places. Secondly, in order to reduce energy waste, Wal-Mart Chinas distribution center maintains control their air condition and heat recycling systems temperature. Thirdly, there are 25,550 kilowatt hours saving caused by ten solar energy water heaters which provide 1.7 tons hot water per day. Lastly, Wal-Mart Chinas distribution center use solar cells and wind power station to make up to 7,300 kilowatt power per year. As a result, each Wal-Mart Chinas distribution center also decreased CO2 by it.(2) Outsourced a standardizes trucking fleetIndividual supplier ship was raze than expected fill rates. Wal-Mart China outsourced an efficient private trucking fleet which deliver products from DC to DC or from DC to SC. It not only helps Wal-Mart China achieves a well inventory management but also reduce out of stock rate. In addition, in order to make its trucking fleet teams more efficiency, new e lectronic technology is used in its logistics management 6. First of all, Wal-Mart China through the electronic technique of satellite, GPS controls the state of transport. Secondly, Wal-Mart China also uses the electronic technique of GIS which provide digital electronic traffic map can suggest the best route of its delivery. Thus, it can be concluded from above that Wal-Mart become a world-class company is not accidental. Advanced electronic technique of Wal-Mart Chinas distribution system not only increase efficiency of its products delivery, but also decrease the situation of out of stock.(3) Centralized management of returning productsWal-Mart Chinas distribution system also has an advantage of centralized management products which has quality problems, inert sales or obsolescence. These products will also be returned to vendor by Wal-Mart Chinas distribution system.In summary, it is clear that Wal-Mart Chinas distribution system and operations can cristal a stable inventory which is part of Wal-Mart Chinas safety stock. By way of replenishment products intensively from distribution center, it not only reduces time of out stock but also increase the circulating of favourables. In addition, as Wal-Mart China has a very complete and standard systems or process of distribution such as outsourced a standardizes trucking fleet, new electronic technology and centralized management which also let Wal-Mart China become a highly warring advantage of Chinas retailer industry.4. How sustainability should be incorporated in the process of selection and evaluation of suppliers/vendors?AnswerIn order to achieve business sustainability successful, both enterprise and its suppliers or vendors have responsible of their roles. First of all, enterprise should offer the requests of sustainability, and then try to find the suppliers or vendors who have production techniques of sustainability. Furthermore, to have a good communication and collaboration including share lear ned experiences with its suppliers or vendor is a critical part of objectives of sustainability.According to the article 4, in order to achieve ROHS compliance, Wal-Mart use up ROHS regulation standard in some of its operations including supplier selection and product selection. For the first example, P G which is a large international supplier has a long standing working relationship with Wal-Mart in other parts of world including the U.S.A. It has a sustainability program concept called ensuring a better quality of life for everyone, now and for generations to come throughout its worldwide operations 4. As can be seen from it, the sustainability development program for P G not only is a slogan, but also is a commitment for its customers. For the second example, Blue moon which is a Chinese national chemical products company supply some soap and cleaner in china. Blue moon also has a sustainable program of its products called Protecting the environment is protecting all of us. O ur products deliver not only cleanliness but also protection to our customers 4. In order to achieve its object of sustainable, biodegradable materials which meet a green environmental requirements used in Blue moons products. For the third example, Wal-mart China also created a initiative sustainable objective which called P2E2 program allowed suppliers to quickly and inexpensively equip their factories with cost saving equipment 4.In order to continuing meet sustainable objectives, Wal-mart builds a sustainability evaluation tools which used in its supplier selection and product or material purchase. For instance, Wal-mart china had implemented a packaging score to measure and calculates efficiency and objective. In the end, this program also a 13 per cent cost reduction in Wal-marts packaging.It can be summary, if the enterprise wants to achieve, to integrate whole supply chain members such as suppliers and vendors are very important. In other words, to develop sustainable supply chain strategy is the only approach to make business sustainability which not only creates a perfect brand image for customers but also protects the Earth.5. How sustainability can be improved in Wal-Marts distribution and retail operations.AnswerAccording to the article, Dong 4 asserted that sustainability will be differentiating factor between a good enterprise and a great one.(1) Energy efficient lightingWal-mart used T5 energy saving light bulbs which could save about 20 to 30 per cent energy in its warehouse or space of rest.(2) Less waste of air conditioning and heat recycling systemWal-mart maintained the temperatures of its air conditioning and heat recycling system which also is an approach of energy saving.(3) Alternative energyWal-mart used ten solar energy water heaters which can save up to 25,550 kilowatt hours each year to produce hot water. Wal-mart also used solar cells and wind power generators which can provide 7,300 kilowatt hours per year. These substitute(a) e nergy not only save Wal-mart cost of electronic but also reduce 31 tons of CO2 emissions every year.(4) Outsourced third troupe logisticsOutsourcing a standardized trucking fleet not only improve Wal-marts effective of shipments but also reduce the risk of goods traveling.(5) Reusable shopping bagsWal-mart encouraged its customers to use reusable shopping bags through some prizes including special express checkout line.(6) Offer ii energy efficient bulbsWal-mart China offer two energy efficient bulbs for the price of one and work with local suppliers in its region. After this, Wal-mart China accepted responsibility and the associated cost of the safe disposal of fluids.(7) Batteries poseIn order to solve batteries placed problems, Wal-mart provided a recycle place for customer to deal with it.(8) Packaging reductionWal-mart china had implemented a packaging score to measure and calculates efficiency and objective in its apple suppliers. In the end, this program also a 13 per cent cost reduction in Wal-marts packaging.As can be seen above, generally speaking, business sustainability concept including logistics, marketing and supply chain has many benefit of the enterprise. Refer to the article the authors 4 believe that more economical situation caused by more sustainable options. In other words, it not only reduce cost of operations but also make more loyal in long run of its customers.