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Unformatted text preview: g to up the ante once they were convinced we had a basis for suggesting
d Container cargo shipping refers to a system of intermodal freight transport under which goods are loaded into
standardized containers, sealed, and then efficiently moved from ship to rail, to truck without labor-intensive, time
consuming, and costly unloading and reloading processes. The immense gains in efficiency with this revolutionary
approach stimulated international commerce: “In the decade after the container first came into international use, in
1966, the volume of international trade in manufactured goods grew more than twice as fast as the volume of global
manufacturing production, and two and a half times as fast as global economic output.” [Marc Levinson, “How the
http://press.princeton.edu/chapters/s8131.html (February 7, 2007).] Walmart’s Sustainability Strategy (A) OIT-71A p. 7 more aggressive goals.” By October 2006, the logistics network was moving so quickly that
Yatsko said, “I can tell you that we’re already therewith three or four percentage points to
sparein terms of our short-term goal to achieve a 25 percent improvement in fuel efficiency by
2007. That equates to almost $75 million in annual savings to Walmart and probably 400,000
tons of CO2 per year out of the atmosphere.”
For other networks, like the China network, more time and planning was required to define a
focus. In 2005, Walmart’s Chinese exports climbed to an estimated $23 billion (greater than 1
percent of China’s $2.25 trillion GDP).23 In total, the company worked with more than 50,000
Chinese suppliers (those companies providing products to Walmart in the domestic Chinese
market, as well as those from which Walmart directly imported products) and was the country’s
7th largest trading partner. Because of this interdependency, Walmart had an interest in helping
China avoid an environmental crisis that could affect supply from the country.
However, developing a focused strategy had proven challenging. “Because China is a geography
and it touches all of our networks,...
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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