Walmart's Green Initiatives Challenge Pallet and Packaging Industries

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May 11, 2010

Packaging and pallet suppliers that want to continue doing business with Walmart –– which recently announced its goal of eliminate 20 percent of greenhouse gases and carbon emissions from its supply chain by 2015 –– will have to put forth more eco-friendly packaging and shipping products.

As part of its eco-friendly initiatives, Walmart also requires suppliers to fill out packaging scorecards, which the retailer reviewed with suppliers during a recent webinar, according to a report in Packaging Enterprise.

Walmart is asking suppliers to use packaging and shipping materials made from sustainable materials and that use 100 percent renewable energy and yield zero waste, the report said. On-target vendors are expected to score between 80 and 100 on the packaging scorecard.

Walmart’s warehouse club division is taking an even firmer stance, making sustainability a requirement, according to Linda Hefner, Sam’s Club executive vice president for merchandising. Buyers will use a “value framework of six components to decide which products to stock,” according to a Pallet Enterprise report, including sustainability, product quality, value of the brand, service, pack size and unit price.”

Walmart is working closely with suppliers to establish guidelines and develop solutions. Last month the company hosted its fifth annual packaging expo hundreds of packaging suppliers showcased pallets, containers and displays. The company also is also working with environmental groups, nonprofits and other organizations on sustainability and waste reduction.

In addition to communicating how much packaging and raw materials products use, Walmart also wants to tell customers about a products origin through its Sustainability Index, a product labeling system under development that could take 10 years to complete.

“We have learned that by taking a leadership role and collaborating with companies that share our commitment and passion to sustainability and want to lead with us, we will benefit entire business systems across the globe,” Matt Kistler, Walmart senior vice president of sustainability, wrote in a guest column to Connecting Northwest Arkansas, a regional publication targeted to Walmart suppliers.

Read These Related Articles:

• Managing the Growth of Store Brands
• Wal-Mart Installs New Store Brand Packaging Design Software
• Wal-Mart Recycles Corrugate into Store Brand Pizza Boxes
• Wal-Mart's Sustainability Index Central to its Business Model
• Wal-Mart CMO: We Are Going to Be a House of Brands

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