Comparative Analysis Of Walmart And Loblaws In Terms Of Corporate Social Responsibility
In this Corporate Social Responsibility Report, I will be examining and comparing two well known grocery retailers in the North American market; Walmart and Loblaws. I selected these retailers because they have made a huge impact on the retail industry with their consistent growth in the market and their huge customer base. We will study both Walmart and Loblaws CSR reports to see any similar connections to what we have learnt in class.
CSR Report #1: Walmart
Walmart is a retailer that has a very outstanding corporate reputation. They have impacted the community in so many ways over the past years in which i would break down. Walmart launched a global commitment in 2011 to increase economic opportunities for women, not just on the retail or corporate level but across their global supply chain. This helped create mo0re employment for women and educational or business opportunities that are essential for retailers to succeed. They have supported local and diverse small businesses and increased economic mobility and inclusion. They have helped the environment in various ways; by reducing energy intensity and emissions in their daily operations by 26% globally, also by eliminating up to 77% of their operational global waste therefore reducing environmental impacts. Walmart has helped strengthen and developing local communities worldwide by relieving hunger with meals being provided to people in need, enhancing resilience in the face of natural or man-made disasters and even cash donations for disaster preparedness and relief. Walmart has reputation has gone beyond measures and they have really made and impact on the community and environment we live in. These are concepts from the textbook that are mentioned in the CSR reportSupply chain strategy - Walmart's decision to implement online shopping for groceries with in-store pick up or home delivery. Responsiveness spectrum - Walmart is highly efficient because of their particular label of integration which they have achieved. Their supply chain is able to make timely deliveries to match Walmart’s promise to customers. Supply Chain Strategy or Design - Walmart retail opportunity is mainly an integrated business strategy focused on creating zero waste, operating with 100 percent renewable energy and selling products that sustain our resources and the environment. Implied Demand Uncertainty - Walmart has a very predictable supply and demand for the products being sold at the retail level. They fully understand their customers and are able to provide goods in the right quantity to match unpredictable demand. The Pricing of Emissions - Greenhouse gas emissions trap heat resulting in climate change, normally humans are responsible for most greenhouse gas.
The sources of gas emissions are usually from burning fossil fuels for electricity, heat, or transportation. Walmart is working hard to be part of the solution by reducing emissions in their operations throughout their supply chain. They plan to reduce their emissions by 18% by 2025 through a various combination of methods. Walmart is a very large retailer but there are still areas of its supply chain that the company has found challenging to this day. According to the CSR report one of the most difficult challenges that Walmart has had is working with its supplies to sustainably improve the products themselves; from the start to the finish of the product life cycle. This is very important in our day of age because consumers are always looking for the next best product for the cheaper price and Walmart has done well for branding themselves as an “Everyday Low Price” grocery shop but to further increase their customer base there has to be an improvement in the quality of products also and the time it takes in getting a product to the stores. Another key challenge faced by Walmart has been the daily challenge their retail stores face of diverting a increasing number of organic food waste. Walmart has had a core environmental goal over the past 10 years of creating zero waste in all the national retail stores, this goal doesn't get achieved overnight because it is very broad but they have been tackling their way into finding a solution by reducing energy and water consumption, improving their recycling initiatives by supporting programs like ‘Save the Trees’ and transitioning to less HFC-reliant systems.
CSR Report #2: Loblaws
Loblaws is Canada's largest retailer with five complementary divisions that make Loblaws family of companies. These companies include Shoppers Drug Mart, Loblaws market, Joe Fresh, PC Financial, and Canadian Superstore. Loblaws has made a huge impact on the community by opening a President's Choice Children Charity (PCCC) and contributing 150 million in fundraising and support to help combat childhood hunger and poor nutrition over the next 10 years. They do this by feeding children good food that will allow them reach their full potential and by educating them on how to make better, well-informed decisions and choices in life. “We are passionate about making sure children have the nourishment they need to grow, to thrive and succeed. Helping to ensure our kids are well fed and ready to learn will help create a better Canada for all of us”- Sarah Davis, President Loblaws Companies Ltd. They also has a history of making sure their customers have the freshest possible selection of produce to meet their needs and preferences by growing multicultural produce locally. Loblaws puts an effort and priority on selecting local or regional products that satisfy the customers quality, value, availability and safety. This furthermore gives a positive environmental impact because products aren’t imported from overseas, Canadian businesses are given the opportunity to expand by meeting the vast demands of an evolving marketplace.
Loblaws is continuously contributing to the environment by converting their fleet to electric, converting refrigerants and reducing leak intensity and reducing and diverging waste. By taking a public stand against the use of plastic shopping bags, Loblaws created a pay-for-bag approach that cost about 5¢ per plastic bag. These are concepts from the textbook that are mentioned in the CSR report: Competitive strategy - Loblaws has a well defined competitive strategy by fulfilling the demand for fresh or locally grown foods. This helps them stand out from many other competitors that outsource their produce items. Supply chain strategy - Loblaws decision to implement click and collect in which a customer shops online and enjoy the same prices, promotions and deals as you would in-store trusting the personal shoppers to pick the best product available at a time and place most convenient for you across their various locations. The Pricing of Emissions - Loblaws is one of the Canada’s largest carbon emitters through the operations of their various retail stores. They plan to reduce their carbon footprint 20% by 2020 and 30% by 2030. They went ahead to preorder 25 of the new heavy-duty electric Tesla semi-trucks designed to eliminate that carbon footprint which will cut emissions and therefore taking up to 20,000 cars off the road. Responsiveness Spectrum - Walmart is highly responsive because production and delivery times are scheduled weeks or months in advance with little variety or flexibility. Supply Chain Strategy or Design - Loblaws has various supply chain strategies that have to do with environment, sourcing and community. They plan to reduce our operational carbon footprint by 20% by 2020 and 30% by 2030; Source all fresh veal and pork from suppliers that have transitioned to group housing by year-end 2018; and contribute to charities and non-profit organizations across Canada. Implied Demand Uncertainty - Loblaws has a high level of implied demand uncertainty, they are able to predict supply and demand ahead of time Loblaws has done well in its supply chain management over the years but there are aspects of their supply chain that the company still finds challenging. A major challenge that Loblaws is facing is the extensive time it takes to get the goods from the warehouse to the store shelves.
This is a very important factor in the retail market because if a customer is looking for a specific good that Loblaws is sold out of, they will tend to go to a competing retailer for that same good and that could in turn hurt Loblaws sales and customer satisfaction. As a result Loblaws decided to cut 6 warehouses from 32, therefore being able to manage them more effectively and meet consumer needs faster and more efficiently. To compete successfully in the market against huge competitors like Walmart, Loblaws has to develop a well-defined system of getting in-demand products from the suppliers to the store shelves. Another key challenge in Walmart's supply chain is the issue of food waste. As discussed earlier this issue affects all the retail grocers in the market because 31 billion worth of food is thrown away by Canadians each year so the issue of food loss is one to be taking very seriously. Produces like fresh fruits and vegetables represent the highest volume category of food being wasted. Loblaws is taking various measures to combat this major issue for example: shortening the supply chain process, improving procurement and operation practices etc. They have set a goal by 2025 to reduce overall food waste at corporate retail level by up to 50%.
Comparison: CSR Report 1&2
From a CSR perspective i believe that Walmart's supply chain performs more effectively because they take a different approach to supply chain management by adapting a strong strategic and efficient vendor-retailer partnership and implementing the latest technologies in its retail stores to help customers shop even more convenient than ever. New technology implemented by walmart allows them to predict demand and inventory levels, create high-efficiency transportation routes, and manage customer relationship and service.
