Business Report: Global Sourcing, Green Sourcing and Procurement

This report provides an overview of green sourcing and its role in global procurement, with a specific focus on Walmart's practices. It explores the reasons for green sourcing, highlighting its advantages in terms of environmental awareness, improved public relations, and cost reduction, while also acknowledging potential disadvantages related to international trade complexities. The report delves into Walmart's organizational actions to incorporate sustainability, including improvements to supplier relationships, supply chain transformations, and advocacy for environmental policies. Recommendations for future actions are also provided, such as the use of green lighting, promoting best sustainable practices, managing international supplier relationships, and green advertising. The report concludes by emphasizing the significance of green sourcing in fostering a positive brand image, enhancing public relations, and ensuring long-term competitiveness in the marketplace.

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Table of Contents
Introduction................................................................................................................................3
Reasons for green sourcing........................................................................................................3
Advantages and disadvantages...................................................................................................3
Organisational actions to incorporate sustainability..................................................................4
Recommendations......................................................................................................................4
Conclusion..................................................................................................................................4

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Introduction
The report is prepared to discuss about the global sourcing and procurement that shall
be made possible with the management of global skills and competencies along with gaining
the ability to supply products and services that can meet the criteria for ‘Just in time’ or JIT.
With the advancement of information and communication technology, there has also been
greater scopes and opportunities, which can assist the company to shift the various operations
and activities from the internal environment of the organization to an external environment,
which includes various functions and processes such as the logistics, supply chain
management, engineering and accounting activities too (de Sousa Jabbour et al., 2015). The
topic will also provide an insight about the green sourcing, which allows for managing supply
chain strategy that can make the company become environmentally responsible as well as
focus on the accomplishment of sustainability goal and objectives with ease and
effectiveness. This will not only help the businesses to gain success I the long run, but can
even strengthen the relationship between the business and its clients, furthermore maintain a
positive public relation to improve brand image, name and reputation too (Walmart.com,
2019).
Reasons for green sourcing
Walmart’s green sourcing has been done for the purpose of managing sustainable
measures to keep environment safe and healthy and at the same time, shift the operational
activities of the company from the internal perspective to an external environment, which can
improve the efficiency of various functions and processes including the management of
supply chain, logistics operations and also the engineering and accounting activities (Sheu,
2016). The company has spent a huge amount of money among the green technology
business for ensuring that the energy and carbon emissions are lowered and also so that it can

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contribute to the management of positive public relations. According to Pazirandeh & Jafari
(2013), the green sourcing also can allow for working with the suppliers and facilitate the
production of sustainable products and service that are easily affordable as well as accessible.
To facilitate green sourcing, the company has also worked with WWF in partnership to make
sure that the healthy and sustainable food items are accessible to all (Walmart.com, 2019).
Advantages and disadvantages
One of the major advantages is that the green sourcing allows for the promotion and
management of environmental awareness that are related to the management of supply chain
activities along with making decisions to reduce the harmful environment impact. With these
sustainable measures, the green manufacturing and production facilities have been benefited,
which also ensures reduction of wastes, harmful emissions along with gaining the ability to
acquire new clients (Loeser, 2013). Another major advantage is that with the consensus
among public about the company’s approach to sustainability and aiming to protect the
environment, the company has managed to improve public relations, which has been possible
with the implementation of green manufacturing and production activities. Additionally, the
green sourcing procedure, as stated by Akhavan & Beckmann (2017), has not only improved
the management of sustainability for Walmart, but could also result in lowering the costs
incurred during the business operations, furthermore foster the development of an
organisational culture to promote innovation all throughout (Walmart.com, 2019).
In spite of the advantages, there are few drawbacks as well such as the green sourcing
is related to the international trade related activities. Due to this, there are chances that the
green sourcing and manufacturing operations can become subjected to impairment, which can
affect the free flow of various trade related operations, goods and services. Often, businesses
fail to identity the right international supplier and this becomes a daunting task, which also

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affects the green manufacturing process for the company within the competitive marketplace
(Chen & Lee, 2015).
Organisational actions to incorporate sustainability
The organisation has undertaken actions to manage sustainability and at the same
time, facilitate the management of environment friendly operations and processes required to
ensure successful business functioning and green sourcing too. The company has prioritised
on the various environmental aspects such as forest, marine, freshwater, climate and
farmlands to sustain in the long run and at the same time focus on these approaches including
the improve, transform and advocate. To Improve, Walmart has made improvements in areas
to strengthen the relationship with the suppliers, which has raised the organisational standards
and managed implementation of green sourcing policies along with sharing of best practices
to keep environment safe and green without compromising on the business functions and
processes (Han, Hwang & Lee, 2017). To Transform, the sustainability innovation has been
supported by making changes to the supply chain and also by extending the distribution
network. According to de Sousa Jabbour et al. (2015), to incorporate sustainability, the last
step undertaken is to Advocate, which enables engaging with the industry policies and groups
to encourage collaborative working and at the same time, deal with the environmental issues
and challenges furthermore. Walmart has keep the water bodies clean and grew more trees,
which also represent the eco-friendly actions undertaken by Walmart (Pazirandeh & Jafari,
2013). This could help in succeeding in the long run through green manufacturing and
production, furthermore, ensure that consistent production is managed to meet the demands
of marketplace without comprising on its quality too. Therefore, these are the actions to
incorporate sustainability by Walmart, US (Walmart.com, 2019).

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Recommendations
 It is recommended to use green lightings at the workplace and at the stores to ensure
there is lesser energy consumption
 The company is recommended to ensure management of best sustainable practices for
keeping the environment healthy and safe
 There is need to manage relationship with the international suppliers, which is a
critical aspect of green sourcing related to international trade
 Management of recycling, reuse and reducing water usage is recommended as well
for the management of sustainable and eco-friendly activities for Walmart
 It is also recommended to manage green advertising for facilitating environmental
management practices and create awareness among people regarding the company’s
adoption of sustainable approaches
Conclusion
The report was prepared to discuss about the green sourcing process and how it
contributed to the management of green manufacturing and production for Walmart in United
States. The green sourcing had been possible with the management of sustainable measures
and with the adoption of eco-friendly operations required to present a positive brand image
and also enhance the public relations, which could also assist in contributing to the
sustenance in the long run as well as become competitive within the marketplace.

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References
Akhavan, R. M., & Beckmann, M. (2017). A configuration of sustainable sourcing and
supply management strategies. Journal of Purchasing and Supply
Management, 23(2), 137-151.
Chen, M. F., & Lee, C. L. (2015). The impacts of green claims on coffee consumers’
purchase intention. British Food Journal, 117(1), 195-209.
de Sousa Jabbour, A. B. L., de Oliveira Frascareli, F. C., & Jabbour, C. J. C. (2015). Green
supply chain management and firms’ performance: Understanding potential
relationships and the role of green sourcing and some other green
practices. Resources, Conservation and Recycling, 104, 366-374.
Han, H., Hwang, J., & Lee, M. J. (2017). The value–belief–emotion–norm model:
Investigating customers’ eco-friendly behavior. Journal of Travel & Tourism
Marketing, 34(5), 590-607.
Loeser, F. (2013). Green IT and Green IS: Definition of constructs and overview of current
practices.
Pazirandeh, A., & Jafari, H. (2013). Making sense of green logistics. International Journal of
Productivity and Performance Management, 62(8), 889-904.

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Sheu, J. B. (2016). Buyer behavior in quality‐dominated multi‐sourcing recyclable‐material
procurement of green supply chains. Production and Operations Management, 25(3),
477-497.
Walmart.com | Save Money. Live Better. (2019). Retrieved 21 July 2019, from
https://www.walmart.com/