Wal-Mart Packaging Scorecard Metrics
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The paperboard packaging industry is under tremendous pressure lately from customers such as Wal-Mart, Target, Kraft Foods,
and General Mills to implement the concept of sustainability into packaging.
Although sustainability is a relatively new buzzword, we as an industry have been subscribing to certain parts of the concept
for a while. The key is the ability to maintain your business financially, socially and environmentally. This is certainly
not new.
But to effectively implement sustainability, the packaging industry must clearly understand how it connects to customer expectations.
After reviewing several customers' expectations, it is apparent that they all have at least some in common:
- Design for recyclability;
- Design for compostability;
- Design for biodegradability;
- Design for better use of space;
- Design for light material usage;
- Reduce waste and packaging content;
- Reduce greenhouse gases;
- Reduce global warming;
- Conserve energy, water, and resources; and
- Use renewable energy.
Simply put, the key connecting words are design, use, conserve, and reduce. Now, let us understand how packaging suppliers can connect these key words to achieve sustainability financially, socially
and environmentally.
Wal-Mart's 7 Rs
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Business sustainability: It is important to note that the business component is the most critical. Economic/financial sustainability
is essential for business existence. However, it can usually enhance the bottom line: Waste reduction in all areas of business
applying lean principles of waste invariably lead to profit maximization and sustainability.
The packaging industry has been using lean principles for a while. Lean operations focus on eight types of waste, which comprehensively
connects to sustainability:
1. Excessive inventory
2. Overprocessing
3. Overproduction
4. Excessive movement
5. Excessive waiting
6. Defects/rework
7. Non-value added transportation
8. Inaccurate information
Social responsibility: The second component of sustainability promotes a consciousness for pollution prevention. For example, do not pollute water,
air and land. Reduce landfill waste.
The packaging industry and other industries are increasingly becoming aware of this social responsibility, and most are finding
that conforming to local, state and federal regulatory requirements with respect to social responsibility is not that difficult.
Environmental sustainability: This third component of sustainability overlaps with social sustainability to a certain extent. Pollution prevention of air,
water and land, conservation of natural resources and energy, and reducing landfill waste are all part of the focus. Setting
objectives and targets to address these elements of environmental sustainability is the key for successful implementation.
The packaging scorecards from packaging customers, for example, effectively connect the objectives and targets of environmental
sustainability.
