Wal-Mart China:Sustainable Operations StrategyPresented by:Deepinder Singh 17P193Shivika Dalmia 17P196Madhur Vashisht17P203Sarvagya Kala 17P223Srishti Gupta 17P229Tushar Pansari17P231Operation Management Report on
Wal-Mart’s Sustainability VisionAbout Walmart•Walmart US had grown significantly to become a retail operation spanning thirteen countries, with over 7000 stores, 68000 suppliers and two million associates in four decades.•Commitment to low price and great service comprised the foundation of Walmart’s culture.•However, it was drawing increasing amount of public criticism and legal battles on a range of issues.•CEO Scott decided to transform Walmart into a worldwide leader in the area of sustainable operation.•He earmarked $500 million towards sustainability projects. Sustainability goals•Increased efficiency of its vehicle fleet by 25% over the next three years and double efficiency in 10 years.•Eliminate 30% of the energy used in stores.•Reduce solid waste from U.S stores by 25% in 3 years.•Walmart Sustainability- A Global corporate direction, not just regional.•Sustainability Effort was observed throughout the high- and mid- level management tiers.•In China, the earlier 14 SVNs were restructured to 5, keeping the original network teams unchanged.
Efforts and Steps Taken •Organized its efforts into 14 SVN*s that included categories such as store operations, electronic products, etc.•Top performing managers were given the responsibility for integrating the sustainability initiatives alongside their current workload. Ideas for projects were categorized in 3 ways:1.Quick wins –quickly understood, short to immediate payback period2.Innovation projects – recent available technology, payback period of 1-3 years 3.Game changers – ongoing basis, resulted in radical shiftsResults and changes•Large changes in product selection in categories of sea-food, electronics and textiles•Became the largest seller of organic milk, largest purchaser of organic cotton•Successfully partnered with GE for CFL lights despite cannibalizing its incandescent product sales to conserve 55 billion tons of coal and keep 1.1 billion incandescent light bulbs out of landfills•Reduce solid waste from U.S stores by 25% in 3 years.