LOVELY PROFESSIONAL UNIVERSITY

Wal-Mart's sustainability Strategy Inventory

Management in the SEAFOOD SUPPLY CHAIN

IntroductionBy 2007, Wal-Mart was sourcing approx-$750 million in sea food annually.

Wal-Mart's seafood business was growing roughly 25%per even.

Worlds fisheries output had declined to 3% of the years- 1900(According to peter Redmond)

Peter Redmond VP for seafood and deli, believed sae food supply continuity was the single greatest long term issue.

Wal-Mart adopted sustainability strategy in 2005;• Supplied by 100% renewable energy • 0% waste• Sell products that sustain people and the environment.

Case AnalysisThe seafood business was growing at roughly 25 percent per year.

MAC program established by unilever and the world wide fund( wwf) in 1997.

The direct cost of MSC certification ranged from $50000 to $500000.

Fishin company sold 5 million pounds of the wild salmon and 10 million pounds of the farmed salmon through Wal-Mart U.S super canteen in 2006.

Estimated that his per-tax net profit margins were less than $0.05 per pound on both products.

ProblemFarmed frozen saimon fillets from Chile

Salmon cost-$3.00/pound(fillet)

Kumar purchased large quantities for lower freight.

Fishing company kept large stock to supply Wal-Mart on just- in- time bases.

Farmed salmon was bought to storage to reduce ground transport charges.

Solution B2B

Uses business electronic supply chain.

To reduce transaction cost

Differentiate Wal-Mart from its competitors

By developing non-tray packing for meats and sea food.

ConclusionIn this case study we have outlined the requirement needed to become a sustainable business the reason why this initiative is different than other previously attempted by wal- mart goals presented by management , the new value networks and risks wal-mart need to address.

Wal mart critics argue that the steady dose of these initiatives is an effort to deflect attention from its workplace policies and its environmental policies as well as address the issues facing their workforce in order to improve there initiatives.