Walmart is starting to embrace a new eco-friendly and price-competitive model.
Walmart has embraced making sustainability price-competitive. Walmart’s strategic plan is to increase the sustainability of all of their products, while at the same time maintaining everyday low prices. Because Walmart is estimated to touch one out of every three dollars of world commerce, this Walmart strategy is now a catalyst accelerating a global green economic revolution.
Walmart Sustainable Productivity Loop
What Walmart customers want are low prices. Walmart fulfills this customer expectation through their productivity loop of continuously driving down costs and using these cost savings to drive down product prices while reinvesting in additional paths for driving down costs. The result is a virtuous cycle of cost savings, cost saving investments and product price reductions.
Walmart is now incorporating sustainability into their productivity loop. Here’s how Jeff Rice, Walmart’s Director of Sustainability, describes the role of sustainability at Walmart:
Price and sustainability really go hand in hand. Becoming a more sustainable business will make you a more efficient business. It absolutely supports everyday low prices.
Walmart’s Sustainability Value Network
The product buyer is at the heart of Walmart’s operations, determining what products are stocked on Walmart’s shelves and at what price they are sold. Walmart has engaged their buyers in a Sustainability Value Networkthat is developing and implementing procurement best practices for delivering more sustainable products at lower prices. The scorecard is a tool being developed by Walmart to use in competitively assessing products based upon price, quality, delivery and now…sustainability. Walmart’s goal is to have every buyer and every supplier engaged in their Sustainability Value Network. Jeff Rice summarizes it this way:
We are building sustainability into more of what it means to be Walmart.
Tanya Manwiller, Walmart Sr. Buyer for electronics, is an example of the success Walmart is having integrating sustainability into their product procurement. She has been nominated for the GreenBiz.com VERGE 25 Smarter Supply Chains for her work.
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Original article by Bill Roth. Originally published by Triple Pundit, republished with kind permission.