Wal-Mart unveils packaging scorecard

By Staff -- Modern Materials Handling, 1/1/2007

Wal-Mart has released its "packing scorecard," providing further information about the retailer's plan to reduce packaging across its global supply chain by 5% by 2013.

The scorecard is a measurement tool that allows suppliers to evaluate the sustainability of their packaging, including both selling unit packaging and transport packaging. Wal-Mart has outlined the following metrics for the scorecard. Each is a percentage of the supplier's total score.

• 15% based on carbon dioxide per ton of production
• 15% based on material value
• 15% based on product-to- package ratio
• 15% based on cube utilization
• 10% based on transportation
• 10% based on recycled content
• 10% based on recovery value
• 5% based on renewable energy
• 5% based on innovation

The retailer's 2,000 private-label brand suppliers already have access to the online scorecard, which allows them to input information about their packaging and measure their performance against competitors.

Wal-Mart's 60,000 other suppliers will gain access to the tool on February 1. Suppliers will have a one-year trial period before Wal-Mart begins evaluating their performance.

Wal-Mart executive Matt Kistler said in a press conference that the company is developing incentives to encourage its buyers to make sourcing decisions based on packaging scores and on the company's other sustainability priorities.

"There will be performance goals attached to our merchandising groups," he said.

Reducing packaging benefits the environment, Kistler said, and ultimately improves the bottom line for Wal-Mart and its suppliers.

An online demonstration of the packaging scorecard is available at www.scorecardlibrary.com.