PFFC - September 2007 - (Page 20)

NEWS CLIPS FPA Offers Scorecard “Class” By Deborah Donberg Associate Managing Editor ROSEMONT, IL | Converters and materials suppliers gathered June 19 at the Hyatt Regency O’Hare in Rosemont when the Flexible Packaging Assn. (FPA) conducted a workshop on the WalMart Scorecard. The meeting (with PFFC in attendance) was facilitated by consultants Packaging & Technology Integrity Solutions (PTIS). uFor more on the Wal-Mart Scorecard, see Edward Boyle’s report on p34. The scorecard is Wal-Mart’s way of judging the packaging of its suppliers in regard to environmental factors such as recyclability, weight, and transportation. FPA president Marla Donahue acknowledged the skepticism of many consumer packaged goods companies (CPGs) regarding the scorecard, at least as far as the Feb. 1, 2008, deadline is concerned. Of 66,000 suppliers to Wal-Mart, less than 2,000 had logged on to the scorecard by the meeting date. The sustainable packaging initiative in general is being driven by the triple bottom line: social, economic, and environment, reported PTIS, adding that while it is all about Wal-Mart now, it won’t be in a few years; others will get on board. In Europe, in fact, the sustainability issue already is very strong and many large retailers are involved. The actual workings of the scorecard were covered in great detail. The scorecard, which is free for CPGs, is connected to Wal-Mart and is submitted to them when complete. The materials data currently being used in the scorecard comes from trade associations, and as of the workshop date, was not yet verified. Modeling software is available for suppliers, converters, and CPGS for $900. With this, they can try out different packaging parameters to see how the scores change. This software has no connection to Wal-Mart and is only for use by the individual company, though it uses metrics from the main scorecard. According to PTIS, there is no audit system in the scorecard—it’s an honor system, though some responses have to be certified. If a company has multiple sites for the same SKU, it takes an average, and no individual metric is worth more than 15%. Attendees broke up into small groups several times to assess the scorecard and offer suggestions. Among the concerns: The system uses the distance from the converter to the end-user to judge the transportation impact, but it does not include the distance the raw materials travel to the converter. Also, some thought there should be a way to include the whole “value” of the package in regard to keeping product safe from theft and tampering, e.g., blisterpacks. As of now, this is not part of the equation. While the scorecard is for CPG suppliers to Wal-Mart, the system includes a Virtual Trade Show, a database open to all global packaging providers of materials, package structures, and/or services. Access to this database is free for retailers, non-governmental organizations, universities, and government organizations. All others pay a $300 annual cost per supplier (2007 only) and $900 annual cost per supplier (2008 and beyond) to participate in the Virtual Trade Show. PTIS said there is no guarantee a higher score will necessarily get a Wal-Mart supplier more business than a company with a lower score. And, they noted, no one believes price will not continue to be an issue, and no one expects Wal-Mart to drop a popular product, regardless of its score. The assumption is that other things being equal, the scorecard rating could be the deciding factor. WWW.PFFC-ONLINE.COM PFFC-ASAP 116 20 | SEPTEMBER 2007 http://WWW.PFFC-ONLINE.COM

Table of Contents Feed for the Digital Edition of PFFC - September 2007

Table of Contents First Glance From the Editor Calendar of Events Web Lines Process Management News Clips Narrow Web & Label Reporter Narrow Web & Label What’s New Products Narrow Web Sustainability: Going Green? What's the Score with Wal-Mart's Scorecard? Straight Talk From Your Trade Associations Learn 5 Key Elements to Creating Cost-Effective and Eco-Conscious Packaging Install Energy-Efficient Light Fixtures and Reap the Environmental Benefits People, Profit, Planet: How to Balance the Impact of a Triple-bottom-line Philosophy Show Preview What’s New Products Services Directory Classified Marketplace Equipment Buyers & Sellers Advertisers Index Experience Speaks

PFFC - September 2007

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