This preview shows page 1. Sign up to view the full content.
Unformatted text preview: we had a little bit of an identity crisis as to what we should or
could do,” said Rob Kusiciel, vice president of Walmart’s global services and captain of the
network. After researching a broad range of environmental issues, Kusiciel and his team realized
that Walmart needed to consolidate its supply base and develop a more collaborative, long-term,
influential relationship with each supplier. They decided to begin working with the largest 20 of
its 50,000 Chinese suppliers (as measured by annual sales volume to Walmart) to improve
environmental performance. Kusiciel explained the approach:
We’ve had diverse relationships with lots of factories over a relatively short
term…. We’ve worked together one purchase order at a time or one season at a
time, but year on year we may switch from one supplier to another… To obtain
improvements on issues like environmental compliance has been difficult because
our relevance to those particular companies is low. Our goal is to bring people
into strong relationships and develop overall business partners that are able to
deliver excellence in the ethical standards area, including environmental
components, quality, and product safety. We will build a sustainable sourcing
model with these 20 companies, and then take what we learn to other sectors.
In addition, Walmart also intended to provide suppliers with valuable knowledge and process
assistance through relationships with the NGOs in its networks. For example, when the Chinese
government threatened to shut down a number of textile dye houses, including one of Walmart’s
suppliers, to reduce pollution in Beijing in anticipation of the 2008 Olympics, Walmart
immediately “put the dye house in touch with one of the NGOs in our network, which helped it
formulate a more environmentally friendly process that reduced its toxic output very quickly.”
recalled Kim Brandner, senior brand manager of sustainable textiles for Walmart. Although
other retailers were negatively affected by the...
View Full Document
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