wal mart buyers sustainability training
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Home Products & Sustainability
February 19, 2008
www.zmarketeers.comwww.zmarketeers.comwww.zmarketeers.comwww.zmarketeers.com
Packaging & Transportation
End of Lifeor New Life
Customer Use of Product
Product Manufacture
Raw Material Harvest
Product Design & Specification
Energy• Minimal energy consumed
• Renewable energy used when possible
Waste
• Minimal water and virgin material consumption
• Durable, reusable, upgradeable, recyclable, biodegradable products
• Minimal negative outputs - air pollution, water pollution, solid waste, toxics
• Maximum positive economic and social impacts on local communities
Products
Questions that
can help you
get on the right
sustainable path
Are our products designed so that throughout their lifecycles they minimize harm and maximize benefit in these dimensions?
• Environmental
• Social
• Human Health
How could the product consume less energy, virgin resources, space?
Is the product designed to be resource-efficient to maintain and operate?
Is the product durable? Does it cause harm at the end of its life?
How does material procurement & processing minimize harm and maximize benefit:
• to our customers
• to communities of production
For example:
• Costs of disposal
• Compliance
• Human Health
• Environment
Are our products made using recycled or other sustainable raw materials?
Are these materials sourced & processed in a sustainable way?
How is every supplier seeking to deliver EDLC / customer value through innovation like:
• Reduced raw material consumption?
• Energy-efficient production?
• Water-efficient production?
• Reduced waste per unit or dollar value?
• Reduced hazardous waste?
• Reuse of “waste” as an input for additional production?
How is every supplier working to improve its packaging?
How is every supplier minimizing the distances goods& parts travel in production & distribution?
Is the distribution system efficient and operating at best practice?
What is your plan to minimize carbon emitted by product transport?
Will using this product consume unnecessary resources?
Will using this product likely harm human health or the environment?
Is the product:
• Easy to repair and upgrade?
• Energy efficient to operate? … to maintain & clean?
• Water efficient to operate? … to maintain & clean?
• Easy to clean + maintain without toxic chemicals?
Will this product educate our customer about sustainability?
What happens to our product when the customer discards it?
What are the costs and impacts to health & environment?
What options exist for reuse, recycling or composting? How could revenue be generated?
What actions is every supplier taking to drive + improve rates of reuse, recycling, or composting?
Questions to Help Generate “Live Better” Innovations
Product Manufacture
Raw Material Harvest
Customer Use of Product
Packaging & Transportation
End of Lifeor New Life
Product Design & Specification
SustainabilityIt’s overwhelming!
How can we ever make headway?Home Products
Sustainability
Thought ChangeDon’t discount small changes.
Just a handful of kernels can fill a bowl.
Even small changes can change the world.
We just need a new approach.
Lifecycle Decisions in the New Product Development Process
Deliverables Impacting Sustainability
• Primary & Secondary Market
Research needs to include Sustainability in research topics.
• Consumer-Driven Design Goals
• Market/Competitive Analysis
• Project Risk Assessment
• Resource Requirements/Expenses
• Preliminary Financial Analysis
• Industrial Design (ID) Source
• Early Design Concepts & Models
Deliverables Impacting Sustainability
• Consumer Research & QFD
• Product Specification
• SKU/Feature Matrix
• Technical Feasibility (FMEA)
• Preliminary Bill of Material (BOM)
• Intellectual Property/Legal Review
• Approved ID
• Request for Quote (RFQ)
• Replacement/Obsolescence
• Supplier Selection - Terms Provided
• Preliminary end of life plan
Deliverables Impacting Sustainability
• Solid Models & Drawings
• Functional Prototypes
• Final BOM
• IP Review & patent applications
• Supplier Agreement/Certification
• Final Design FMEAs
• Finalize packaging, POP, Instruction Manual
• Finalize end of life plan
Deliverables Impacting Sustainability
• BOM & Drawings Finalized
• Replacement part strategy
• Limited opportunity to impact end of life plan.
Concept DefinitionDesign
DevelopmentImplementation
Product Manufacture
Raw Material Harvest
Customer Use of Product
Packaging & Transportation
End of Lifeor New Life
Product Design & Specification
Advance Development
????
Q. At what point in the New Product Development (NPD) Process are most decisions impacting sustainability made?
Q. At what point in the NPD process are most buyers presented with products?
Q. In general, who (what job functions) within suppliers have the greatest opportunity to improve sustainability-related product impacts?
Q. Which representatives of suppliers do buyers typically interact with?
A. During the Definition and Design Development phases
A. At the end of Development, shortly before Implementation
A. Account Representatives (Sales)
A. Project Leaders – Engineers & Marketing
Concept DefinitionDesign
DevelopmentImplementation
Product Development Process: Key Considerations for Sustainability
Process for Collaboration on Sustainability: Sustainability Strategy Meeting
A collaborative buyer-supplier discussion focused on driving Sustainability into the product
at every stage of the Product Lifecycle
PRODUCT TEAM
� Project Manager/Engineer
� Marketing/Brand Manager
� Design – Industrial, Packaging*
� Quality/Six Sigma*
� Supply Chain*
Gain Sr. MGMT support
Who?
SCHEDULE THOUGHTFULLY
Schedule meeting before CONCEPT
phase of NPD Process and far away
from Line Review and CNY
Sustainability must be instilled in
designers’ minds from the beginning
Be sure to get a clear NPD
Timeline from your Supplier
When?
HELP SUPPLIER PREPARE
�Give supplier preparation packet
Focus on 1-2 specific products or
categories (ask supplier for input
on products for discussion)
�Focus on ONE aspect of Product
Lifecycle (ask supplier to select
lifecycle stage w/ highest impact)
How?
Materials
� Product samples, CAD Views, Components
� Product tear-downs
� Material samples
� Packaging samples
� Printed materials:
� Bill of Materials
� Examples of previous product improvements
�Six Sigma projects, etc.
Ask Supplier to BRING PHYSICAL MATERIALSSUPPLIER
PREPARATION PACKET
� Sustainability background
� Meeting target & agenda
� List of product team
members requested
� List of support materials
supplier should bring
*Optional (Engineering & Marketing req’d)
Challenge
Right People in the Room: Buyers typically interact with Account Managers; Product Teams do not
traditionally have time planned for account meetings.
Intellectual Property:Any discussions surrounding innovation raise concerns about Intellectual Property (IP) ownership. Who
should own ideas generated during collaborative meetings?
Lack of Transparency:Suppliers strapped for margin might be reluctant to openly discuss waste reduction opportunities.
Many suppliers will have perception that they are lagging behind the competition, or that their ideas are not
far enough along.
The Sustainability Strategy Meeting: Common Challenges
Challenge Possible Solutions
Right People in the Room:Buyers typically interact with
Account Managers; Product Teams
do not traditionally have time
planned for account meetings.
Ask Account Managers to loop in their Product Teams. Communicate the
initiative through Supplier Executive Team.
Give the Supplier several meeting date options to coordinate schedules
of NPD Team and send the invitation and planning materials well in
advance of the meeting window.
Possible Solutions – Right People
Challenge Possible Solutions
Intellectual Property:Any discussions surrounding
innovation raise concerns about
Intellectual Property (IP) ownership.
Who should own ideas generated
during collaborative meetings?
1. For a completely open discussion, agree before the meeting to
assign any emerging IP to the supplier.
2. If there is no prior agreement:
(a) Discussions can be limited to the issues of Sustainability
in a product or category, with more specific solutions tabled for the
Product Team’s offline discussions. More in-depth meetings can follow
after the supplier secures provisional patent protection
(b) Supplier can meet with an independent 3rd party
sustainable design expert to discuss issues and potential solutions, and
prepare for a buyer meeting once provisional patents are in place.
3. If the relationship is a collaborative one (e.g. in the case of factory-
direct sourcing) the supplier might be open to a joint ownership option.
Possible Solutions – IP Protection
Challenge Possible Solutions
Lack of Transparency:1. Suppliers strapped for margin
might be reluctant to openly discuss
waste reduction opportunities.
2. Many suppliers will have
perception that they are lagging
behind the competition, or that their
ideas are not far enough along.
1. Discuss other areas impacting Sustainability, such as an End of Life
plan, consumer benefits, or more efficient energy use.
Refer suppliers to third parties for assistance; for example:
� Independent sustainable design firms
� Independent certification bodies
� Wal-Mart’s Supplier Energy Efficiency Program (SEEP)
2. Emphasize in executive communication that early-stage ideas are
welcome and encouraged, and that sustainability is new for everyone.
Possible Solutions – Encouraging Thought-Share
Sustainability Strategy Meeting SimulationConsumer Research comments are hypothetical
Demonstration #1
Acme Bedding
Mattress Pad
Packaging
Demonstration #2
Bistro Brewers
Coffee Maker
2112 cubic
inches:
12” x 16” x 11”
378 cubic
inches:
3” x 14” x 9”
82% reduction in cube!!! ACME
Bedding
50+%reduction in energy use!!!
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