Walmart SVN, feedback 1:3

January 21, 2011

Hello and happy Friday! I am taking a much-needed break from sketching Dordan’s new website “information architecture,” which is really just a fancy way of saying website organization and navigation. For those of you who are considering launching a new website or redesigning an existing one, I thoroughly recommend the following—I would have had no idea what to do without these sources!

Steve Krug’s Don’t Make me Think: A Common Sense Approach to Web Usability

Rosenfeld’s and Morville’s Information Architecture for the World Wide Web

As an aside, yesterday I went to The Brat Stop, which is sort of a historical icon on the border of Illinois and Wisconsin in Kenosha. It was AWESOME—I felt like I walked into an 80’s movie! I had the best garlic Bratwurst that I piled sky-high with raw onions! If you are ever in the area, I suggest you make a stop—the fried cheese curds are reason enough!

OH, and while there, I discovered this wonderful piece of art: a 3D sculpture of the Chicago Bear mascot hung with a noose. Those jerks…we will see Sunday; Go BEARS!

OK, so today I’m going to discuss the Walmart Sustainable Value Network meeting I attended in Rogers, Arkansas, December 14th, 2010. For those of you unfamiliar, Walmart hosts bi-annual meetings for its “preferred suppliers,” wherein members are updated on Walmart’s sustainability initiatives. These meetings also serve as a platform where suppliers can asks questions and get answers in real time.

Shall we begin?

December 14th, 2010
Sam’s Clubs Headquarters, Rogers, Arkansas
Walmart’s winter SVN meeting

The first topic introduced at the meeting was the new “Sustainability Leadership” team at Walmart. For various reasons, there had been some dramatic restructuring of the sustainability team. New names were introduced, accompanied by new faces and punctual speeches.

After each new team member had said his/her part, the host began explaining some revisions to the metrics of the Walmart Scorecard.

To begin, the Scorecard was put into its intended context; that is, to assist suppliers in helping Walmart achieve its 20 million metric ton GHG emissions reduction target via overall packaging reductions, among other things. Consider the following statements:

By January 2011, Walmart suppliers should provide companywide emissions reductions through packaging improvements.

By mid 2012, SKU-level reductions in emissions for companies/divisions/and categories should be reported.

The reporting audience is intended to be a compilation of the following: The buyer/supplier/management/SVN/etc.

I do not know what the status of these suggestions are, however.

Next, the host explained that contrary to popular belief, it is not just Scorecard completion that will influence a suppliers’ standing within the system, but the result of how the supplier uses the Scorecards’ data output. In other words, in completing one’s Scores, a supplier is granted access into how to improve said Score; be it through changing materials or the way in which the fulfilled package cubes out, it is only when you complete a Score that you can begin to understand how to improve it.

Next was an explanation of the “cube utilization” metric within the packaging Scorecard; this attempts to quantify how the relationship between the product volume and package AND fulfilled package and transport packaging informs its overall supply chain efficiency and therefore sustainability.

Previously suppliers had been required to provide the cube utilization for the selling unit and transport unit. In other words, you first had to determine the ratio between product and package in the context of volume for the selling unit i.e. fulfilled package, AND the ratio between the packed out product and its transport shipping in the context of volume. In a nut shell: cube utilization tries to see how efficiently the product exists within the package and how efficiently the package exists within the transport packaging.

NOW, in the name of simplicity, suppliers only have to provide information on the selling unit cube utilization, thereby eliminating an entire calculation of transport cube utilization. These are the notes I have from this discussion; hopefully you can make more sense out of them than I can…

Cube utilization:

Selling unit + transport unity–> pallet load efficiency

*Volume of transportation cube utilization

Volume of transport unit/volume of product

Next, the host explained that while previously suppliers had to enter two separate Scores for the merchandise unit and the unit for sale, now they only have to enter one for the unit for sale. In other words, instead of having the supplier treat the same product that is sold in different parts of the same store as two different products by entering two different Scores, now the supplier can report one Score, for both SKUs. After all, the selling unit is the same if it is sold as a unit for sale within its category or as a promotional merchandise unit; therefore, why double the work?

Lastly, it was articulated that Walmart now has devoted an entire team to helping suppliers with the Scorecard, contacted via the retail link of the Scorecard support. Seeing as how the above described changes to the Scorecard metrics are just as impossible to write about as they are to truly understand, I am glad that Walmart has made this investment!

Tune in Monday to learn about updates with Walmart’s Supplier Sustainability Assessment, its latest goals, and its Sustainability Index!

Have a great weekend. And go BEARS!!!

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