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• Walmart’s/Sam’s Club senior management has been encouraging suppliers to ‘raise the bar’ in sustainability
• Worldwise proposed to Walmart they utilize Walmart’s waste as raw materials in the products they make and sell back to them
• After extensive research, four (4) key Walmart waste materials were identified that could be made into new Walmart products:
Bottles Bags Corrugated Hangers
Raising The Bar by Closing the Loop
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Waste = Food: How The Program Works
• Like most retailers, Walmart and Sam’s Club utilizes a lot of bottles, bags, corrugated cardboard and hangers
• These materials are collected in various locations in the stores/clubs by associates and customers
• Super Sandwich Bales are created in each store/club, transported to a Material Recovery Facility (MRF), and sorted at the MRFs into material specific bales
• Worldwise picks up the bales, cleans and processes them, and makes them into a variety of new items that Walmart sells to its customers
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Benefits of “Closing the Loop”
• Walmart/Sam’s Club earns revenue for selling the “raw materials” to Worldwise
• Consumers get a better deal because of lower or more stable pricing (in a rising commodity cost environment)
• After initial investments are recovered, Worldwise should eventually benefit from lower raw material/processing cost, enabling the company to lower its prices
• Shorter transportation distances lower carbon footprint
• Jobs are created in North America
• Customers and associates feel good knowing they’re part of the solution
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What Was The Process? • In order to generate and keep the momentum moving forward,
Worldwise engaged a wide variety of:
• Worldwise staff from around the globe
• associates at Walmart, including individuals and teams from over 10 different departments (executives, operations, merchandising, legal, sustainability, marketing, public relations, walmart.com, and more)
• supply chain partners (recycling partners, material recovery facilities, cleaners and processers)
• materials experts (to overcome processing and manufacturing challenges)
• additional stakeholders (environmental groups, activists, etc)
• members of the media (television, newspapers, magazines, blogs, etc)
• Waste materials were identified, supply chain operations analyzed, processing systems developed, tracking systems created, new items manufactured, new packaging instituted, and a comprehensive integrated marketing plan developed and executed
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What Did We Learn? • Utilizing a partners ‘waste’ is a considered the ’holy grail’ by many
environmentalist for a reason – it isn’t always easy!
• While you must have one person own the result, getting the right individuals and teams motivated and committed with “co-ownership” makes it possible to overcome the inevitable issues
• There are a variety of unanticipated challenges when dealing with a partners waste and supply chain – including mixed materials, contamination, variability in load production, and more – but they can be overcome
• Creative thinking and innovation is critical when approaching supply chain partnerships, manufacturing processes, marketing, and retail merchandising opportunities
• There is tremendous excitement generated by consumers, environmental groups, the media and other stakeholders when programs of this nature are executed
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Who Cares?
• “Closed Loop” models are widely regarded as an important part of the zero waste solution
• Closed loop solutions can provide a variety of benefits for partners, customers and stakeholders – including cost savings (for all parties) and happier customers
• By thinking about the entire supply chain – from design through raw material extraction, manufacturing, packaging, distribution, consumer use and disposal (or recycling) – you will uncover numerous opportunities
• By thinking creatively, you can likely turn former expenses into profit… a true win-win-win-win for you, your suppliers, customers and our environment
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Key Collaborative Practices
• Creating a compelling vision of the future and passionately ‘selling’ it to a wide variety of constituents and stakeholders isn’t easy – but is critical
• Helping individuals understand why the opportunity is important not just to the organization – but themselves and their careers – is very important
• Developing the right network of experience speeds the process and lessens the challenges
• While senior level support isn’t an absolute necessity, it will motivate most in the organization and make your life a lot easier
• If it’s the right thing to do, don’t give up just because you hear ‘no’ the first time
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• For more information contact:
• Aaron Lamstein, Board of Director ([email protected]) • Matt Turmbull, CEO ([email protected])
• Worldwise, Inc. 160 Mitchell Boulevard San Rafael, CA 94903
415-721-7400 (Main Number) 415-526-8254 (Aaron direct phone) 415-526-8304 (Matt direct phone)