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Hello and happy Friday!

Today we are going to discuss the second part of the Walmart SVN/Expo. For a discussion of the first part, visit April 20th’s post.

After a discussion of Metrics, the SVN Packaging leadership team discussed changes to the Scorecard. Since its introduction to the packaging community, the Scorecard has been used as a tool for information entry, not action facilitation. What this means is that Walmart suppliers have only, for the most part, demonstrated the “completion of Scores,” as opposed to how said Scores inform procurement. Now, however, it is not just Scorecard completion per item file encouraged, but total impact and progress.

The Walmart SVN packaging leadership team intend on orchestrating this by allowing software users to calculate total GHG equivalents emitted per CMUM (“consumer meaningful unit of measure,” i.e pair of socks or 16 oz bottle of water), in order to establish a baseline off which to gauge progress. This will be accomplished by multiplying the selling unit (CMUM) sales by GHG equivalents emitted per item. The progress of Walmart’s goal of reducing GHG emissions across all stores (and clubs?) by 2013, therefore, can be quantified and qualified by performing reports on item level (CMUM) GHG emissions from 2008 vs. 2013; if a 5% reduction is observed, Walmart has reached its GHG reduction goal. The take away? Vendors should demonstrate a change in GHG/CMUM by 2013 when compared with 2008 Scores (assuming they were entered and active).

A representative of the Walmart SVN packaging leadership team then encouraged the following actions by the SVN participants:

Product suppliers: look at item files and make sure all are active and verify Scorecard entry per item; cancel the non-active files. Work to decrease resource and energy use, thereby reducing GHG equivalents emitted per selling unity/CMUM.

Buyers: ensure vendors complete above mentioned tasks; be ready and informed for how to read reports when they come.

Packaging suppliers: understand what is driving buyers (GHG reduction per selling unit/CMUM) and work to aid progress in this area.

Have a splendid weekend!

Hello and happy Friday!

Guess what: yesterday marked the highest trafficked-blog day EVER! 76 new people visited my blog! That’s like, almost a small concert!

Today I am going to summarize the second part of Walmart’s SVN meeting, which I attended in Rogers, Arkansas, on December 14th. For a description of the first half of the meeting’s happenings, visit January 21st’s post.

December 14th, 2010
Sam’s Clubs Headquarters, Rogers, Arkansas
Walmart’s winter SVN meeting

After an explanation of changes to the metrics of the Scorecard, one of the new team members touched upon the Supplier Sustainability Assessment. Unlike the Scorecard, which attempts to quantify the “sustainability” of a package at the item/SKU-level, the SSA attempts to quantify the “sustainability” of a supplier at the corporate level. Comprised of 15 questions that look to illuminate a supplier’s relationship with its employees and community in addition to the materials and natural resources consumed via its processes, this Assessment conveys how a supplier approaches sustainability. It was then articulated that the packaging Scorecard will be a component of the SSA, though I am unaware of how it will be incorporated.

Next, the host touched upon Walmart’s recently announced global sustainable agriculture goals, which as per this press release, means that Walmart “will buy more from small and mid-sized farmers around the world; reduce food waste; and sustainably source key agricultural products.”

Then the Product Index was introduced, which I found very interesting. Apparently, Walmart has embarked upon the journey of collecting LCI data on every product sold at their Stores. This Index, like the Scorecard, attempts to quantify the sustainability of a product at the item/SKU-level. Can you image the amount of work that would go into getting LCI data on all the products sold at Walmart/Sam’s Club?!? It was explained that through the joint efforts of the Sustainability Consortium, funded in part by Walmart and drawing resources from Arizona State and the University of Arkansas, Walmart will begin amassing environmental data on their products in preparation for the time “when their customers demand it.” In other words, the way in which it was presented to the SVN, the motivation behind collecting all this data is to provide Walmart/Sam’s Club customers with information about the sustainability of the products they buy. Walmart is unable to comment, however, on how this information will be presented to their customers; all that was stated is this is a goal that is currently underway, done only to meet the assumed demands of their customers in the future.

There are several “teams” working on these pilots—one working with the electronics sector, another for food and beverage sector, and yet another for the homecare sector.

A new team member then approached the podium and explained the approach of the Consortium as follows:

The Consortium looks to (1) use science to (2) develop standards for measurement in order to (3) allow for accurate reporting that will inform the retailers’ (4) sourcing standards; consequentially, providing their customers and community with more sustainable products.

It was concluded that Walmart wants to be able to understand the sustainability performance of its products in order to begin rewarding truly sustainable manufacturers.

I will provide a summary of the last part of the Walmart SVN meeting early next week. Have a great weekend!!!!