Wal-Mart Canada issues green mandate to service providers

MISSISSAUGA, Ont. — The Canadian arm of the largest retail company in the world has unveiled its new “green” shipping strategy, which includes requiring carriers to adopt environmentally-friendly equipment and shipping practices.

As part of the first-ever, company-wide Supply Chain Sustainability Scorecard, Wal-Mart Canada is spearheading collaboration among supply-chain companies “to measure and reduce the environmental footprint of
its product shipping process and logistics network.”

The company will begin to assess its network of service providers — including trucking, rail, storage and distribution — on the basis of environmental impact, efforts and improvement.

Wal-Mart already started its green shipping strategy
on its own by shifting freight from trucks to train

“Our new rules for supply chain sustainability will cover everything from fuel use, to facilities and equipment standards, to the overall environmental commitment demonstrated by the companies we hire to ship and store our products,” said Lesley Smith, Wal-Mart Canada’s vice president of supply chain.

But there’s another “green” benefit to going green — in terms of dollars and cents. By moving goods more efficiently, Wal-Mart Canada and its supply-chain service providers expect to lower costs to ensure the lowest prices for customers, the company said.

Last year Wal-Mart Canada and shipping supplier SCM changed the mode of transporting goods destined for 10 stores, located in Nova Scotia and PEI, from road to rail.

The company, which under the plan also converted 20 truck generators to electric power, says the change has reduced carbon emissions by 2,600 tones and saved 40,000 liters of fuel. Combined, the two measures are expected to deliver annual cost savings of more than $2 million.

Wal-Mart, which plans on one day being powered 100 percent by renewable energy, also changed some shipping crates from cardboard to plastic, allowing boxes to be used approximately 60 times instead of once. The move reportedly saves about $4.5 million in costs, with expected waste reduction of more than 1,400 tones.

Going forward, Wal-Mart service providers will be required to audit their respective environmental impact related to operations. The scorecard will be based on four factors:

Equipment: The use of sustainable alternatives, efficient engines and tires.

Operations: Enforcement of programs for recycling, vehicle idling, and oil collection.

Facilities: Responsible energy use (including green power), and efficient buildings.

Corporate commitment: implementing a vision or culture of sustainability throughout the business.