Greenifying the World’s Largest Retail Supply Chain

November 18, 2008

If you’re watching what the “Big Boys” do and trying to pattern your success after theirs, here’s something to take note of: Wal-Mart, the biggest retailer in the world is attempting to Greenify with a makeover of its global supply chain.

Wal-Mart has a vision of going green, and is now demanding its suppliers, including many based in China, to live up to environmentally friendly manufacturing practices and product-safety guidelines to make that vision come true.

The Arkansas-based retailer got together with more than 1,000 suppliers in Beijing, China, telling them that change was coming.   And not just for the Chinese suppliers. The company is holding suppliers to higher manufacturing and operations standards to “build a more environmentally and socially responsible global supply chain,” announced company executives.

Here is what CEO Lee Scott had to say, “A company that cheats on overtime and on the age of its labor, that dumps its scraps and chemicals in our rivers, that does not pay its taxes or honor its contracts--will ultimately cheat on the quality of its products. And cheating on the quality of products is the same as cheating on customers," Scott said.  "We will not tolerate that at Wal-Mart," Scott stated.

The specifics of the new policies, requirements and deadlines for what Wal-Mart called its "Global Responsible Sourcing Initiative" were equally as bold, and most were targeted at suppliers based in China.  The requirements will force the factories to meet environmental standards in China by 2009 (elsewhere by 2011), make a 20% improvement in energy efficiency, and source 95% of their production from factories that receive high ratings on environmental and social practices.

If the world’s largest retailer can get its suppliers to Greenify, then maybe its time to consider how smaller companies can also go green in their own place and time as well.


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