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Wal mart

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Hans Zhuang Olsen

on 8 July 2014

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Transcript of Wal mart

Overview: Wal-mart and Wal-Mart China

Sustainability for Wal-Mart

Sustainability for Wal-mart China

Achievements and Challenges

Our Solution
First store opened in 1962
- Bentonville, Arkansas
As of 2005:
- Operations in 13 countries
- 7,000 stores
- 68,000 supplier
- 2 Million associates
- Revenue $280 Billion

Wal-Mart China
1996-First Supercenter was opened in Shenzhen, China

By mid 2008 there were 106 supercenter stores in the country

More cost-sensitive than in the US
-Frequent shopping around

Buy smaller quantities more frequently

Why Sustainability
Largest private user of electricity in the US
-1.5 million kilowatt-hours per year per store

Bad Press

3 Goals of Sustainability
1. Increase the efficiency of its vehicle fleet by 25% over the next 3 years and double efficiency in 10 years

2.Eliminate 30% of energy used in stores

3.Reduce solid waste from US stores by 25% in 3 years

Costing $500 million

Project Categorization
Quick Wins

Innovation Projects

Game Changers

Chinese SVNs
1. Sustainable stores and operations

2. Sustainable products

3. Supply chain compliance nod standards

4. Supply chain efficiencies

5. Communications

Group 3: Bobby, Saif, Lisa, Kaitlyn and Hans
Implementing the Plan
Tianjin Distribution Center (DC)
Partnered with Unilever to design a cloth reusable shopping bag
- Subsidized
- Express Lane
- Prizes

June 2008- The Plastic Bag Policy

Stopped product inspection

Bus associates to work

Resell all used cartons, pallets, and plastic

Warehousing lighting was supplemented by day lighting
- Used T5 energy saving bulbs

Solar energy water heaters

Solar cells and wind power generators

Blue Moon, Johnson and Johnson, Kimberly-Clark, Kraft, P&G, SC Johnson, Unilever, and Colgate

Wal-Mart China encouraged participation among these suppliers in third-party initiates such as P2E2

Pollution Prevention Energy Efficiency

US-China program that encourages environmental cooperation

Allows suppliers to quickly and inexpensively equip their factories with cost-saving equipment

Lighting 20-30% energy savings

Solar energy water heaters saves 25,550 kilowatt-hours per day

Solar cells and wind power generators together save 7,300 kilowatt-hours per year

Limiting Inspection
-There was minimal breakage during shipping until the product hit the shelf

Results Continued
Internal goals achieved in 2007:
- Largest seller of organic milk
- Largest producer of organic cotton
- Changes in suppliers for seafood, electronics and textiles
- Partnered with GE to sell over 110 million CFL unit

Do not have recycling centers for Batteries
Companies must have a Hong Kong parent to qualify for P2E2
CFL bulbs has small traces of mercury
China limits the number of stores possible in certain areas
Having to educate the stakeholders
Distribution Centers

Recycle through a reverse supply chain

Release a quarterly sustainability report to stakeholders in China

Q & A
Full transcript