Wal-Mart pushes Green supply chain plan

CEO speech reaffirms retailer's focus on energy reduction and global sourcing standards

By Dave Hannon -- Purchasing, 1/29/2008 6:56:00 AM

Retail giant Wal-Mart is known for pushing the envelope in its supply chain strategies. Most recently, the company’s supplier-facing efforts have focused on energy conservation as a cost-reduction strategy.

In September, as part of a partnership with the Carbon Disclosure Project, Wal-Mart said it will ask suppliers in seven product categories to report how much energy they use in the production of the products they sell to Wal-Mart.

More recently, in a speech to more than 7,000 store managers last week, Wal-Mart CEO Lee Scott reaffirmed that strategy by setting a company-wide goal: to work with suppliers to make its most energy-intensive products in Wal-Mart stores, anywhere in the world, 25% more energy-efficient within three years. He also said the company will work to inform customers about the energy required to make and use more energy-intensive products sold in its stores.

Scott also emphasized ethical sourcing practices in his speech, saying Wal-Mart will require suppliers to meet stricter quality and environmental standards, even if it means paying more in some cases.

“Paying more in the short term for quality will mean paying less in the long term as a company," Scott said.

See also: Wal-Mart goes green BIG TIME

 See also: 19 Hot tips to cool energy costs

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