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Unformatted text preview: come, and we look at developing a pathway to get from where we are today to
that desired future state. We call that the sustainable pathway, which is made up
of projects of different sizes. We've got quick wins that the business and
stakeholders can immediately go after. We have innovation projects, which may
take one to three years. These initiatives involve Walmart, but often change
entire industries. Then we also identify game changers.
Game changers would be pursued on an ongoing basis and were intended to result in a radical
departure from traditional business practices (see Exhibit 5). Elm used the revolution of
container cargo shipping in the mid-1950s to set the bar for magnitude of impact expected from a
game changer.d Each network was asked to define six quick wins, at least two innovation
projects, and one game changer. (See Exhibit 6 for a sample from the textiles network.)
In the early phases of the program, some networks, such as Global Logistics, were able to
leverage existing programs to hit the ground running. Tim Yatsko, network captain for that
team, described his approach: “Just being in transportation means you’re in the fuel efficiency
business. So when Lee [Scott] defined the company’s sustainability goals, we quickly
formalized our fuel efficiency processes and rolled them into the business sustainability strategy
of the company.”
While Elm concurred that the logistics team already had been making good progress, he
commented that information from network partners led them to adopt much more ambitious
goals. “The value of the network approach is that the goals grew as the spirit of the possible
grew. The involvement of groups like Rocky Mountain Institute (RMI) in our logistics program
had a tremendous impact on how much and how quickly Walmart recognized it could drive
change. Initially, the logistics team was going after incremental gains, for example improving
the efficiency of Walmart’s fleet by a few percent over several years. But now they plan to
double it within 10 years,” he said. Swisher added, “You have to give Walmart credit for being
open-minded and willin...
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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