Posts Tagged ‘supply chain management’

Eco-friendliness or profit? Walmart shows us how we can have both.

Food miles.

Hopefully, this important concept means more to you than “just another eco-buzzword.”

Food miles refers to the distance that produce must travel from the farm where it is grown to the plate you eat it off of. Due to unfortunate lapses in planning and organization, most of the produce stocked on local supermarket shelves has traveled over 1,500 miles (on average) to reach you! The staggering inefficiencies of these supply chains may be discouraging to some, but I see it as a creative void — an empty space begging for innovation and improvement. And when there is obvious room for improvement, companies generally take advantage of it.

Walmart just so happens to be one of those companies. Yesterday, the retail giant announced that they would continue their commitment to establishing relationships with local farmers in order to source more fresh fruits and vegetables to stores across the country. By attempting to buy as much produce as possible from within the state where it will eventually be sold, Walmart reduces the amount of ‘food miles’ they rack up by millions every year.

Local produce supply chain efficiency

Clearly, Walmart has a lot to gain from its investment in local food — especially with rising fuel costs. In the past, my guess is that this particular supply chain inefficiency may not have been an attention-getting nuisance thanks to relatively low oil prices…but with the price per barrel surging to $144 today, the inefficiency is quickly turning into an unacceptable obstacle.

If Walmart can reduce its fuel consumption, it can obviously extend its profit margin. However. there is good news for customers as well: Beyond the beneficial implications of reduced carbon emissions, local produce reaches store shelves fresher. In addition, money remains in the community (or state) to help it thrive. And of course, less pollution leads to better overall health as well.

This story is an excellent example of how adopting more sustainable business practices can create win-win situations. Walmart cuts wasteful spending out of its operation, and as a result, oil consumption decreases, carbon emissions decrease, and customers receive fresher and healthier food. These are exactly the types of situations you should aim to create with your own business if you’re looking for ways to make a real difference.

Going green doesn’t mean you must sacrifice your bottom line. Try asking yourself the question: “How can I achieve both? How can I make a positive impact on the environment, while also making a living?” Asking how you can achieve “both” removes unnecessary limitations on the creative problem-solving process. By considering “both,” you find win-win possibilities you would’ve never considered had you focused on just one side of the equation.

Broaden your evaluations and you’ll be presently surprised by the solutions you find. Remember, you don’t have to settle for compromise. Just ask yourself how you can achieve BOTH.

Posted by Josh on July 2nd, 2008 No Comments