ECR AP - GS1 Hong Kong Supply Chain Management

Scott Price PLANET
PLANET is extremely important to Walmart.
Every single one of us in this room has a role to play in saving
our planet. I was delighted when I heard that the ECR Asia Pacific
team has set up a sustainability committee to share best
practices in this important area because I believe this is one area
in which we can collaborate far more than some other areas.
And if manufacturers and retailers can collaborate on sustainability
and share best practices, what an impact we can have on saving
our planet.
Hunger:
Asia will have over 2 Billion Middle class by 2020. We will
be the largest consumption population region in the world.
542 Million or over 50% of the global population suffering
from hunger will come from Asia Pacific region
By 2025 the demand for energy will increase by 50%, food
demand will be up 48%.
Pollution:
75% of Southeast Asia’s original forest cover has been destroyed
500 million people in China lack clean drinking water
The total number of cars, trucks and buses in Asia is doubling
every seven years.
We have a holistic approach to sustainability involving operations,
associates, customers, communities and operations.
Amidst all of these challenges. Walmart has been pursuing a path
of sustainable growth. In 2005, Walmart set forward three broad,
long term sustainability goals.
1. To be supplied 100% by renewable energy
2. To create zero waste and
3. To sell products that sustain people and the environment
Suppliers:
We have four major areas of work with our supplier partners on
sustainability.
1. Joint programs on sustainability
2. Supplier development programs
3. MSP sharing
4. Our sustainability index.
Joint programs wit Unilever in Asia on sustainability:
We’ve made it a priority to stock and sell items that are more
sustainability focused. With Unilever, in addition to the programs
that Harish talked about, we’ve done key sustainability
programs including the “Green Lux” program in Asia. This
campaign is to encourage customers to recycle old shower cream
bottles India Recycling of plastic bottles and pouches in 30 cities
Supplier development programs: In China we’ve
worked with over 300 supplier factories to improve their energy
efficiency. 143 of these factories have already achieved a 20%
energy efficiency improvement. This translated to an energy
savings of 514 Million Kwh equivalent to reducing CO2 of
411,000 tons.
MSP sharing:
Another area of
best practice is
our “My Sustainability
Program
(MSP). MSP places
ownership on every individual to have a personal plan to help
the environment. Given the fact that Walmart employs over 2
million associates worldwide, this has considerable impact. Japan
organization is a great example. Over 75 % of our employees
have a MSP More important however is how our extended
Walmart family of supplier partners now is being provided access
to MSP. We now provide a royalty-free license to organizations
interested in adapting MSP for its employees or stakeholders.
To date, 35 organizations, including UPS, Unilever, J.B.
Hunt, United Healthcare and others, have taken advantage of this
licensing opportunity since its release in September 2011.We are
always looking for the next big opportunity to partner with Companies
like Unilever with whom we have a very active sustainability
partnership. Together we can do more.
Our sustainability index: Finally, in 2011, we began to
integrate a Sustainability Index into our business. This new retail
tool will assess and improve the sustainability of our products.
We have worked alongside The Sustainability Consortium and
its more than 90 members – including suppliers, academics,
NGOs and other retailers – to develop the research and metrics
behind the index. Over the last year, we used these metrics to
develop our first category scorecards to help our buyers evaluate
products, and we expect to develop scorecards in up to 100 major
categories by the end of 2012. We hope over the next few
years we continue to partner with you in the area of sustainability.
We believe this is one of our most important responsibilities
– to protect the planet we live on.
Harish Manwani
“In the next two days you will be hearing about and discussing a
wide range of ways in which we, as ECR AP members, and as
manufacturers and retailers, can work together collaboratively to
improve the lives of our consumers in Asia Pacific. We can do
this by working both on the supply side of our businesses and by
creating improved services for our mutual customers, whether
from improved logistics solutions to On Shelf Availability. Scott
and I wish you an interesting and fruitful conference in the hope
and expectation that we can all make a difference in touching the
lives of our consumers and consistently improving the value we
give them”
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