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Wal-Mart 'produces' better fruits and vegetables

The same containers used for picking in the farmer's field also display produce in stores.

By David Maloney, Senior Editor -- Modern Materials Handling, 11/1/2001

Anytime fruits or vegetables are moved from one container to another, they risk being damaged. The way to reduce bruised produce is to eliminate the transfers.

Much of Wal-Mart's lettuce, carrots, citrus fruits, and other produce items are now spending their entire distribution cycles in returnable plastic containers (RPCs).

Produce in the field is picked directly into the containers and eventually travels within those same containers to direct display on Wal-Mart's store shelves. Nine sizes of containers are currently holding product, with six used predominately.

RPCs save Wal-Mart money, transfer time, and protect produce better than the corrugated cartons the retailer-grocer had used previously.

"It also frees up time that our associates used to spend throwing away the corrugated, plus there is a green factor environmentally," says Ron McCormick, Wal-Mart's director of produce.

McCormick adds that the containers additionally allow him to rotate stock better to ensure that produce on display is always fresh.

Wal-Mart conducted focus groups to see how customers would react to seeing the same plastic containers used for field picking displaying their produce in store aisles.

"All of the groups had a favorable reaction. Our customers said it gives a 'farmer's market' appearance that they liked," says McCormick.

McCormick adds that besides the attractive appearance, the containers' design and ergonomic handles make it much easier for Wal-Mart workers to maneuver them within the stores, which also minimizes produce damage.

One of the newest containers (Hays Container Services, 559-250-5934, www.hayscontainerservices.com, Arca Xytec Systems 800-423-3221, www.xytec.com) measures 400 x 600 cm and is 12 cm high. This size is well suited for small vegetables, such as carrots, cucumbers, and grapes. Wal-Mart started using this container in July and is expected to utilize about 2-million of them this year. An advantage of the new RPC is its ability to stack with containers from other manufacturers. The footprint and compatibility now allows growers to stack five additional containers per pallet load, which lowers transportation costs.

All of Wal-Mart's RPCs are pooled with other growers and retailers. Pooling companies wash, sanitize, and sort the containers, then deliver them directly to the growers. After product is picked, the containers travel to a Wal-Mart distribution center, which delivers them to stores. Empty containers are picked up at the stores, returned to the distribution center, and eventually gathered by the pooling services to start the cycle over again. Bar codes on the containers allow complete tracking throughout the supply loop.

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