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customers perceived that they were getting half the product for the same price as competitive
brands and the new detergent failed to catch on. In 2005, Unilever brought the idea for All Small
& Mighty directly to Lee Scott shortly after he announced the sustainability strategy.
Scott rewarded this supplier by personally embracing the product and making a commitment that
Walmart would aggressively promote the triple concentrate formula and help educate customers.
As a result of the joint effort, sales of All Small & Mighty grew rapidly. By removing two
thirds of the water from this product, the same number of uses fit into a package just one third of
its original size. The annualized savings impact associated with Walmart's sales volume are
estimated at 3.3 million gallons of water being shipped, 1.4 million pounds of plastic for
packaging, and 7.6 million pounds of corrugate. This resulted in transportation fuel savings of
6,887 gallons, 613 fewer trucks, and an estimated overall Supply Chain savings $1.3 million.
Just in its Sam’s Club division, the company eliminated a layer of pallets in its normal
configuration for paper towels by using a new, stronger type of packaging and then stacking the
product differently. In doing so, it saved 940,000 wood panel pallets a year equating to $3.1
million in pallet savings and 35 million board feet of lumber (roughly 180,000 trees). With
fewer pallets the company was able to fit more of the product in a truck, so it also saved $1.3
million in truckload savings and $855,000 in corresponding labor costs.
Walmart changed the packaging of its large bags of dog food to a new nylon-based packaging
material. This reduced the amount of packaging material used by over 50 percent, decreased the
amount of product damage and disposal due to torn or compromised bags by 50 percent, and
resulted in an annual savings of $1 million. Walmart’s Sustainability Strategy (A) OIT-71A p. 34 When Walmart achieves its goal to sell 100 million compact fluorescent light bulbs (CFLs) by
the end of 2007, it will potentially save customers as much as $3 billion in elec...
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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.
- Winter '10