STORES Magazine - December 2008 - (Page G12)

GREEN RETAILING / NETWORKING Sponsored by Building Sustainability Networks Wal-Mart brings associates, suppliers and other experts together BY LEN LEWIS friendly very quickly, according to a recent article in the Stanford Social Innovation Review. al-Mart has given a whole new meaning to Among the recent changes brought about by SVNs were the term “networking” in its continuing quest improved energy use and efficiency, reduced or recycled to make sustainability the battle cry for the waste and increased introductions of environmentally company and its suppliers. friendly and organic products. For instance, in Sustainable seafood the chain has partnered with the MaValue Networks Ever since Wal-Mart emerged from what’s rine Stewardship Council (MSC) to ensure been called the “Bentonville Bubble” in which products have been caught and processed by Products attention was largely focused on operating efsustainable means. In textiles, the chain partDirect footprint ficiency and growth, it has aggressively pronered with the Organic Trade Association and Supply chain moted the idea that environmental stewardthe Organic Exchange to expand its organic ship and profitability are not mutually exclusive. This is the cotton business and to promote standards for global prooverarching message from Sustainability 360 — a corpocessing. rate manifesto that is impacting every aspect of the chain’s In the supply chain segment, the Sustainable Packaging own business and that of suppliers. Value Network consists of about 200 leaders in the global The key was the development in 2005 of Sustainable packaging industry whose mandate is to reduce the volume Value Networks (SVN) designed to drive environmental of materials used to deliver products to customers. Walinnovation into everyday operations. At present, SVNs are Mart has been one of the most aggressive chains in this broken down into three major areas — products, direct area, according to many industry observers, embarking footprint and supply chain. Under products are SVNs that this year on a sustainable packaging scorecard for more concentrate on profitable and sustainable solutions for than 97,000 products from over 6,000 vendors. The scorejewelry, seafood, food and agriculture, chemicals, wood card measures suppliers on such things as the amount of and paper, textiles and electronics. Direct footprint consists CO2 per ton of production, product-to-package ratio, reof SVNs studying climate, buildings and energy, logistics, covery value and use of renewable energy. waste and alternative fuels. The remaining networks, On the profit side, the company expects scorecarding to packaging and China, focus on the supply chain. reduce costs $10 billion by 2013, with about two-thirds of The networks include a broad cross-section of associates, the savings going to suppliers and the balance to headquarbusiness entrepreneurs, suppliers, academics, government ters. Wal-Mart’s association with the non-profit Green Elecofficials and non-governmental organizations (NGOs). tronics Council (GEC), another network member, was inThe groups meet regularly to brainstorm on how environstrumental in the development of the scorecard for envimentally friendly products can be produced or purchased. ronmentally sustainable electronics products. Each network has its own governance and business plan In another initiative, Sam’s Club worked with Apple to and hundreds of network members meet with company ofconvert iPod packaging to 100 percent renewable, recyclaficials every quarter to report on ble and sustainable materials. It also progress, highlight challenges and opdownsized 300 toy boxes in Wal-Mart’s portunities and develop new initiaKid Connection line, saving an estimattives. ed 3,400 tons of corrugated materials. The networks help Wal-Mart boost Within the networks that deal with its environmental credibility and difreducing the company’s direct footprint, the chain remains steadfast in its ferentiate it from the competition, but mission to transform itself into a comthey also create longer-term collaborapany that runs on 100 percent renewtive relationships with suppliers rather able energy and produces zero waste. than short-term, price-oriented ones. Among its goals: making existing Bridges are also being built between stores 20 percent more efficient in suppliers and NGOs. When the Chinese seven years and new stores 30 percent government threatened to shut down more efficient in four years; making dye houses in Beijing before the the fleet 25 percent more efficient in Olympics, the suppliers were put in three years; and reducing solid waste touch with a network NGO to help by 25 percent in three years. them become more environmentally W G12 STORES / DECEMBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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