How should Wal-Mart rationalize its seafood supply chain to reduce costs and promote sustainability?

Walmart has a large retail seafood business and it is always a challenge to reduce cost and promote sustainability. With upward trend for the demand of sea-food, depletion of the seafood supply is inevitable unless Walmart have a deep engagement of their supply chain. One strategy that Walmart wants to promote to their suppliers is for all of them to take up the Marine Stewardship Council’s certification program. This process will be time consuming, expensive and complex. The depletion of some fish poses a threat to Walmart and its seafood supply chain.

Many challenges exists that will lead to indirect or direct increases in the cost
Wild-seafood species are nearing extinction. Seafood farming can sustain seafood supply as it is renewable since fish can be given the best conditions for fastest growth, viability of eggs, and survival in the environment. Quality of the fish is always of a concern. However, Walmart can promote these fish by emphasizing other qualities and advantages of farm raised fish. For example, farming for seafood will reduce the heavy metal pollutants in the fish such as mercury. Since consumers are health conscious, these fish will be more appealing. Such efforts also promote environmetal sustainability. This is always attractive for shareholders.

Eco-labeling, as in the case of Whole Foods is a great strategy to market and increase consumer awareness. By doing this, Walmart will be able to communicate better with their customers regarding their efforts in their environment and social responsibilities. This improves their image, their market share and profit margins.

Reducing the cost of the supply chain by buying directly from producers will have an direct impact on the supply chain. This will reduce cost. Furthermore, reducing the involvment of middlemen and intermediates can also rationalize their sea-food supply chain management. They can merge with direct providers of goods and commodities.

Communication with consumers is also key to promote Walmart’s sustainability. They need to