Challenges in the Business

Challenges in the Business

Strayer University

BUS 310

Challenges in the Business

At Wal-mart, we have high expectations not only for ourselves but for our suppliers and stakeholders as well. The four core Wal-Mart core values are carried beyond our walls (Service to the customer, Strive for excellence, and Act with Integrity). We are committed to making our global supply chain more responsible in helping us uphold these values. In order to make us successful in doing so, we have created a Responsible Sourcing program. The program, will monitor, audit, and investigate conditions in the supply chain for possible “at risk” situations and provide our suppliers and stakeholders with guidelines to our “best practices”.

Empowering Workers

One of Wal-mart’s core values is to Strive for Excellence. The way we can achieve this is by engaging our suppliers and associates in activities to be successful in completing or exceeding their expectations. The “Responsible Sourcing Academy Training Portal” is one option for our suppliers to gain access to guidelines, training, and other educational material. By having this information at their fingertips, we can ensure that everyone is on the same page and lessen the likelihood of misunderstandings. Our associates are now being offered education at an affordable cost through our new initiative $1 a day towards a degree in Business or Chain supply management. This will help associates be able to leverage promotions and become more knowledgeable in their areas of expertise. Both of these options will help strengthen and cultivate the environment in which we work.

Labor and human rights

“Respect for the Individual” is another one of our core values all of our associates are expected to honor and we believe it should carry over to our suppliers. Wal-mart uses different methods of auditing to ensure this value is being followed by the supply chain within the scope of Wal-mart’s Responsible Sourcing program. The audits revolve around a variety of areas such as if workers are paid properly, child labor, or health and safety. The results of the audits are sent to suppliers that use those facilities and responsibility is left to supplier to remedy any issues that may have been found.

Health and safety

“Acting with Integrity” is the third Wal-mart core value we are sharing with our suppliers. The awareness of “human trafficking”. This is when an individual is forced to work, coerced to accept unsafe conditions, or is abused. Wal-Mart took action against this by getting involved in the communities in which this injustice was taken place Wal-mart is a founding member of the Alliance for Bangladesh Worker Safety. The main objective of the group is to develop safer working conditions in the read-made garment industry in Bangladesh. It has already been successful in training over 1.2 million factory workers on fire safety, provided funds for over 6600 displaced workers, and displayed results of factory inspections and correction plans on company websites.


Wal-mart is working with suppliers to reduce the environmental impacts of receiving products.

A good example is the impact from the farm to the factory to the customer. Wal-mart is working to reduce emissions, achieve zero deforestation, and eliminate waste. Wal-Mart is is assisting suppliers in this effort by launching a digital resource center for projects in emission-reduction, forecast demand on produce items , reduce production of items that cause increased deforestation as part of Project Gigaton.


Service to the customer is another of our values in which we take very seriously. It is important that we deliver the wants and needs of our customer in a timely manner. The consequences of not getting what is needed could result in loss of business .Therefore; we have implemented a new policy for our suppliers called “On time and in full”. Basically, there is a four day window to get requests delivered or it could result in payment penalties such as 3% off invoice charge. Wal-mart reinforces accountability and consequences through our “Supplier Strike program”. This is one of the tools we use to promote compliance and could result in Wal-mart terminating business with supplier if criteria are not met. These things are in place to help supplier maintain a consistent pattern of managing its supply chain.

Closing statements

Diversity is what Wal-mart believes is best served across our supply chain. That is the reason we hold our four core values to be true. We work with all types of companies but the goal is the same “To save people money so they can live better”. We are the largest retailer in the world with over 260 million customers. Become part of the solution by joining or participating in improving the world around us. Save Money. Live Better.