Walmart Sustainability

Beginning in 2008 walmart would formally use the

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Unformatted text preview: ation of its suppliers to meet its public goals. As a result, effective supplier measurement and motivation was essential. The packaging network, under captain Matt Kistler, VP of package and product innovations, was furthest ahead in this area. This group was in the process of implementing a web-based scorecard that would evaluate each product’s packaging against nine metrics such as cube utilization (percentage of total space used within a storage area, trailer, or container), recycled content (percentage of recycled material contained within the packaging), and product to package ratio (amount of packaging relative to size of product). The scorecard was developed with input from the 200+ members of the packaging network, including NGOs, the EPA, Walmart’s direct suppliers, packaging suppliers, and other stakeholders.f On February 1, 2007, Walmart’s 60,000+ suppliers would be asked to begin using the scorecard for a one-year trial period to determine how their packaging innovations, environmental standards, energy-efficiencies, and use of materials rated relative to their peers. Beginning in 2008, Walmart would formally use the system to “measure and recognize its entire supply chain based upon each company’s ability to use less packaging, utilize more effective materials in packaging, and source these materials more efficiently relative to other suppliers.”55 The scorecard was perceived as an important enabler for helping the company achieve its public goal of reducing the packaging used by all of its suppliers by 5 percent between 2008 and 2013. If achieved, this five-year program was expected to generate $3.4 billion in savings. The textiles network also was getting close to making a similar online scorecard available to suppliers. Ruben highlighted the importance of choosing the right metrics to measure suppliers, using the electronics network as an example: With metrics, what’s always been difficult is to figure out the things that you can start with that are relevant either to the business or ultimately to the cust...
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This note was uploaded on 01/14/2014 for the course LGST 210 taught by Professor Sep during the Winter '10 term at UPenn.

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