Sustainable Operations Strategy

Topics: Sustainability, Supply chain management, Cost Pages: 6 (1963 words) Published: December 1, 2012
1. Explore through the literature the concept of (Business) sustainability and explain it briefly. Also using references on Operations Strategy describe what sustainability in operations strategy means. Answer:

Traditional cost management models tend to only focus on production costs, whilst ignore product's cost of design, development and customers using. In other words, the business concern visible costs and ignore intangible costs that means the destruction of the surrounding environment such as the cost of social responsibility during production the process. Thus, enterprises 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 business operations strategy or should be a part of business sustainability strategy. 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 will not damage the profitability of business. It can be summary from above that sustainable business means the enterprise consider not only financial factors, but also more comprehensive concern the impact of environmental and resource efficiency. 2. Discuss what "Sustainability" means to Wal-Mart, Wal-Mart China, and Wal-Mart China's current and potential customers. What would you see to be a balanced definition of sustainability for the business? Answer:

In order to run business sustainability, Wal-mart combined value and service concepts of innovative operational strategies and set three sustainability objectives including more efficiency of vehicle fleet, reduce waste and energy saving. First of all, to combine value and service of its innovative operational strategies involve 14 SVNS made Wal-mart became the largest organic seller and the largest organic cotton purchaser. In addition, Wal-mart also through its integration of supply chain and ROHS compliance which including supplier or vendor selected and scored to achieve business sustainable aims. For instance, Wal-mart sold 110 million compact fluorescent lighting successful with its partner called GE.

Wal-Mart China
In term of Wal-Mart China, its through 5 SVNS reach business sustainable. First of all, the strategy of sustainable store and operation can help Wal-Mart China reduce cost and decrease Wal-Mart China's footprint of operations

. Secondly, to develop sustainable products such as food, electronic textiles and product packaging extend its business sustainability supply chain and compliance.

Thirdly, to enhance efficiencies of its supply chain not only reduce cost but also footprint of whole chain. Fourthly, to make a good 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. Wal-Mart China's current

Wal-Mart China's sustainable logistics centers helped its reduce 31 tons of CO2 emission per year. For example, T5 light bulbs can save 20 to 30 percent energy per day in warehouse areas and resting places and to use solar energy and wind power generator can 7,300 kilowatt hours per year. In addition,...
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