Walmart joins GreenerPackage.com in new product database

Walmart joins GreenerPackage.com in new product database
Posted by Anne Marie Mohan, Managing Editor, GreenerPackage.com

Walmart Stores, Inc. and its Packaging Scorecard software provider ECRM have tapped GreenerPackage.com to serve as the entry point for packaging material suppliers wishing to add their sustainable product data for use in Walmart’s Packaging Scorecard Modeling software. Upon launch of the Greener Package Database, product information submitted to the site will not only be available to GreenerPackage.com visitors, but it will also feed ECRM’s MarketGate™ application suite, maintained for Walmart’s private use with its modeling software.

In the following exclusive interview with GreenerPackage.com managing editor Anne Marie Mohan, Sam’s Club director of packaging Amy Zettlemoyer-Lazar discusses the agreement and the new Greener Package Database in more depth.

GP: Why did Walmart decide to ask ECRM to merge its database with Greener Package?
AZL: ECRM initially created MarketGate as a virtual trade show to support our Sustainable Packaging Expo by housing the packaging suppliers’ sustainability information. Greener Package has a broad audience of packaging professionals who may find this information useful, and therefore, merging the two seemed like a good fit of information and an audience.

GP: What are the benefits of this database to packaging suppliers?
AZL: With the Greener Package Database, packaging suppliers will have one place to post their company information, and it establishes a uniform way to talk about their packaging materials, their components, and any environmental claims associated with both.

GP: What are the benefits of this database to your product suppliers, i.e., consumer packaged goods companies?
AZL: CPG companies can use the database as a source to find more sustainable materials and packages, which ultimately provides our customers and members with more choices. Walmart Stores, Inc. holds an annual Sustainable Packaging Expo in Rogers, Arkansas, and this database allows suppliers who can’t travel to the exposition access to the same information year-round. Because it doesn’t require travel, the virtual trade show also provides an opportunity for us as a company to provide low-cost innovation.

GP: Can you explain how the data in the Greener Package Database will link to the Walmart Packaging Scorecard Modeling software?
AZL: The modeling software is currently used to compare packages for multiple environmental metrics. When the user makes material selections for comparison within the software, the product information is visible. So the system provides suggestions for packaging suppliers that can help improve their modeling score. For those product suppliers that are interested, when they compare their packages, they have a direct link to those packaging suppliers who can help them make that improvement.

For Walmart, it’s really important right now to push better packaging and more sustainable choices because Americans are being very thoughtful about the purchases they make. It’s really important to make sure that we are continuing to drive waste and inefficiencies out of the business, which is why more sustainable packaging plays a good role in that goal for us as a company.

At Walmart, efficiencies and sustainability go hand-in-hand. So our motto is really “Save money. Live better.” At Walmart, we are providing value through our products, and that value translates into quality and more sustainable products and more sustainable packaging. So we are driving more efficient products and more efficient packaging, and making better material selections, and that has a direct link into more choices and better-value products for our customers and members.

GP: The Greener Package Database will provide suppliers with the opportunity to have their product claims reviewed by a third party. Can you explain why this is important?
AZL: The Document Review process will verify that the information that the packaging supplier is sharing is being reported using industry-standard terminology, making sure that claims are being made in a similar manner across multiple suppliers. So when a CPG company looks at the site, they understand what’s being claimed, and there is no confusion between the way one supplier may make that claim versus another supplier making that claim. It’s important to verify what statements are being made or what claims are being made and how they could be interpreted by the CPG customer or a retailer. Then ultimately, those claims can be passed on to our customers or members. So we want to make sure that at the start
they are accurate.

GP: Can you talk about the how the Document Review process will address greenwashing and bogus claims by suppliers?
AZL: We found that some of the guidelines out there may be confusing to packaging suppliers. There is potential for misunderstanding that the Federal Trade Commission Green Guides pertain to all marketing claims. They are not only marketing claims to the consumers paying for a product that’s in a package, but they are also meant for business-to-business marketing claims.

And so, the Document Review process will ensure that when the product supplier makes an environmental claim, they have done the tests to back that claim up. Or, that they can prove that the material is being recycled as per the FTC guidelines. There has been a lot of confusion in this space in the last couple of years, and it has the potential to lead to greenwashing. Greenwashing is a concern because we really want to make sure that we are communicating accurate information to our customers and members, and we want to be sure that they have better information to make better purchasing decisions.

In general, we are basing the Document Review on the FTC Green Guides and strict interpretation of those guidelines.

GP: Can you give some examples of how claims of biodegradability or recyclability might be reviewed?
AZL: Sure! The claim of compostability would actually need to have a test report from a lab stating that it has actually been tested and meets the requirements of the testing outlined in ASTM D6400 or D6868 pending the material. For recyclability, that would be based on the package type.

Some things in order to be claimed for recyclability must be able to be recycled or collected in a significant majority of municipalities. That doesn’t mean that it’s capable of mechanically being recycled. So that’s where there has been a big difference. If a supplier is making a claim that their package is recyclable, then they must talk about the actual packaging components that are being collected. There are several studies and reports that show what is being collected across the United States that are going to be used to verify that claim.

So suppliers need to talk in detail if they are using a PET bottle. Does it use color or not? If it’s glass, what type of glass is it? Based on the packaging components and the FTC guidelines and several reports, a decision will be made whether that really meets being able to be collected in a significant majority of municipalities.

GP: Do you know what a significant majority is?
AZL: I have heard some numbers, but it would need to be above 51% and around 60%. But that is not outlined, to my knowledge, in the FTC guidelines.

GP: Originally the Greener Package Database was going to focus on questions pertaining more to the environmental impact of a product, but the merger with ECRM brings far more data points with extensive performance data. Can you explain what the benefits are of having one database for both performance and environmental data?
AZL: The benefit is that suppliers don’t make decisions based on one or the other. If you have a packaging material or a packaging component that is more sustainable but doesn’t perform, then it really doesn’t meet all the requirements of the marketplace. It’s very similar to when our customers and members come to Walmart and Sam’s Club; they are looking for a more sustainable product that meets all of their expectations in performance. So it’s important to have both together because decisions cannot be made on one area without considering the other. Walmart is recommending that when you look at performance data, you also look at environmental areas of the product and vice versa.

GP: What is the benefit to suppliers who pay to have their data reviewed? How will it affect how their data is displayed in the database?
AZL: Packaging suppliers who pay the fee to have their data go through the Document Review process will have the benefit of having it clearly identified in the database that they have gone through the review process and that their packaging material or packaging component meets the requirements to make all the claims. Whereas, if the supplier does not go through the audit, it will be clearly identified in the database that they have not provided documents to prove this claim. It doesn’t mean that the packaging does not meet the claim, but that those claims haven’t been verified. And so it will be clearly identified if the product has been reviewed or not reviewed in the database.

As a result, after August 1, 2009, the modeling software will not show a link to any packaging suppliers that have not gone through the Document Review process.

GP: I would think that the Document Review process is something that packaging suppliers would almost need to have done anyway if they are going to be selling their products based on environmental benefits. What are your thoughts?
AZL: The Document Review helps to substantiate their claims and helps to give them credibility. I think it will be a benefit to those packaging suppliers in that they won’t have to worry about establishing credibility with every product supplier that they are trying to sell to. They will have been able to do it once in the database and can refer to that Document Review to show that they have provided the compostability claims or the recyclability claims, and that it has been reviewed by a third party. Instead of every one of their customers having to verify that information, they can double-check on the Web site themselves and feel confident on the level of Document Review.

It’s also due diligence to make sure that the application the CPG is selecting meets the requirements, but it is a nice first pass to make sure that it is by starting with the verification. Definitely every package is customized for the product and for the customer. So it’s important that after that customization, any claims that they are making on the label are also verified.

GP: Any final thoughts on the new agreement and on the future of the Greener Package Database?
AZL: In my opinion, the database is nice because it takes the Sustainable Packaging Expo every year and makes it year-round. It also helps our product suppliers, our customers, and our members find better products and better options. It makes that information more accessible, and it is not going to require as much travel or as much investigation upfront. So it opens innovation to a whole new group of people.

GP: Although Walmart is gearing the database information toward its suppliers, the database can help move everyone ahead. It isn’t only available to people who are working with Walmart. It’s available to anyone who is interested in making positive changes in their packaging, correct?
AZL: Right! To make packaging more sustainable, in many instances, you need economy and scale. So having a package that only works for one retailer may not be the right solution for a more sustainable package. So it is important that other retailers, even our competitors, have the visibility to these suppliers as well. While Walmart wants to lead with innovation, it is definitely important to have other competitors have access to the same information.

-- CardPak Inc.

What’s the Score?

What's the Score?
As they say, you can't tell the players without a scorecard!
By Tom Polischuk (PackagePrinting.com)

Wal-Mart has clout—there’s no doubt about that. When Wal-Mart speaks, people listen—especially its suppliers.

The company created a real buzz for RFID a few years ago, when it announced that it was mandating the use of this technology from its suppliers. Although this effort has faded from the limelight and has been largely redefined in scope, RFID technology received more attention during a two-year period than it would have gotten in a decade. RFID technology still has a ways to go in terms of reliability and cost, but Wal-Mart’s initiative probably did a lot to advance its development.

Before the dust had a chance to settle on its RFID efforts, Wal-Mart took on another noteworthy initiative—sustainability. In September 2006, the company announced that it would institute using a Packaging Scorecard with its suppliers to help the company meet its commitment to reduce the use of packaging materials across its global supply chain by 5 percent by 2013.

The Scorecard, unveiled at Pack Expo 2006, is based on metrics for how packaging impacts sustainability factors throughout many aspects of the entire supply chain. They were developed over many months by the Packaging Sustainable Value Network, a group of 200 suppliers, experts, and other Wal-Mart stakeholders. These metrics and their Scorecard weighting factors are: greenhouse gases/CO₂ per ton of production (15 percent); material value (15); product/package ratio (15); cube utilization (a measure of storage efficiency in warehousing and shipping trailors/containers, 15 percent); transportation (10); recycled content (10); recovery value (10); renewable -energy (5); and innovation (5).

The Scorecard has been in various stages of use and implementation since its introduction. Even before it officially went online in February 2008, Wal-Mart reported that more than 97,000 products had been entered into the Scorecard by more than 6,300 vendors.

Diamond Packaging and CardPak are just two package printers that have been actively involved with the Scorecard and have been experiencing its impact firsthand.

Diamond Packaging has been proactive on the sustainability front for a number of years now, having committed to the use of renewable wind energy, and started a program called the greenbox initiative to develop and implement sustainable packaging solutions for its customers.

Dennis Bacchetta is director of marketing for -Diamond Packaging. Although he believes that sustainability has gained a great deal of traction from “a confluence of legislative, corporate, and consumer interest,” he also says that the Wal-Mart Scorecard has done its part in raising the stakes.

“Wal-Mart’s Packaging Scorecard tool has helped put the concept of sustainable packaging in the forefront of many companies’ and consumers’ minds, and thus been a key driver in trying to understand what sustainability truly is,” he says. “As a result, many consumer product companies [CPCs] have requested information on sustainability, including our efforts to design more eco-friendly packaging, and our experience with the Wal-Mart Packaging Scorecard tool. We anticipate that as sustainability continues to grow in the public and corporate awareness, it will become ingrained in our corporate and social structure.”

David Himmelein, regional sales and marketing manager for CardPak, also recognizes the impact that the Scorecard has made and the opportunities that it presents to his company and others. “The Packaging Scorecard is one of the first tools of its kind to judge the entire package that hits the Wal-Mart shelves,” he notes. “This has been beneficial to CardPak because our EcoLogical Line of Packaging eliminates the harmful PVC plastic clamshells from the waste stream. The scorecard now gives us an opportunity to measure the differences in the original packaging and our solution.”

The ability to provide a tangible measurement system lies at the heart of the Scorecard’s value to its users. When something can be measured, it can be improved. “The value we get from the Wal-Mart Packaging Scorecard is that it provides measurable evidence that our designs have increased a package’s sustainability,” says Bacchetta.

CardPak uses the Scorecard as an additional sales tool in its arsenal, and performs mock-Scorecard analyses to show the impact that its packaging system has when compared to traditional clamshell alternatives. “This information is then presented to our customers for them to use in making their decisions on the engineering of each product package. They are well aware of Wal-Mart’s objectives for the Scorecard, so will want to have the best possible score for each package,” notes Himmelein.

It is not surprising that Himmelein reports all of CardPak’s customers that sell to Wal-Mart are involved with the Scorecard in some form. To provide a value-added service to its customers, CardPak hosted an exclusive training event early in 2007 with ECRM and Mars Packaging that allowed its customers to get answers to their questions concerning the Scorecard.

Bacchetta notes that even companies that do not directly supply Wal-Mart have been impacted by the Scorecard due to increased sustainability awareness. “They see it as an opportunity to support a sustainable use of resources and cultivate a positive emotional connection to their brand,” he says.

Diamond Packaging has used the Scorecard for many customer projects. One in particular—done for a well-known personal care company, says Bacchetta—rated various products and developed a plan for redesigning their packaging based on weight, environmental impact, and material. “We then scored the new packaging to ensure that, when compared to the existing packaging, it resulted in a score improvement,” he explains.

CardPak successfully implemented a redesign for the packaging of GE’s compact fluorescent lamps (CFLs) that are carried in Sam’s Club stores, says Himmelein. “The original package was in a PVC clamshell, and scored a 3.5. By switching to the ClubPak™ style, we were able to more than double the scorecard value to a 7.5.”

Of the Scorecard’s nine metrics, both Himmelein and Bacchetta agree that a package printer can have the greatest impact on the product/package ratio.

In CardPak’s case, the traditional PVC clamshell is a prime target. “Oftentimes, the overall weight and size of the clamshell is too much,” says Himmelein. “We have reduced the footprint of the package and removed up to 85 percent of the plastic materials, resulting in a better score for this particular metric.”

According to Bacchetta, reducing the weight of a package can impact several areas in the Scorecard’s metrics, including conserving raw materials and energy, reducing greenhouse gases, and minimizing discards. “This can be achieved through careful material selection, reduced board usage, and the elimination of components (e.g., thermoform and shrink wrap).”

Another area of focus for package printers is cube utilization, says Baccetta. “However, this requires a higher level of collaboration with other partners throughout the supply chain (marketing/sales, distribution, retailer, etc.) in an effort to reduce material and energy usage, and maximize shipping efficiencies.”

Going forward

Since it was first announced in 2006, Wal-Mart’s Packaging Scorecard has made a significant impact throughout the consumer products arena. Last November, Wal-Mart again used Pack Expo as a forum to announce evolutionary changes to the system.

In a keynote presentation, Amy Zettlemoyer-Lazar, packaging director, Sam’s Club and co-manager of Wal-Mart’s Sustainability Value Network, reported that the Scorecard’s metrics would be adjusted to increase the focus on greenhouse gas and packaging weight reductions. She also said that in 2009, Scorecard implementation would begin to move beyond the U.S. and include other countries such as Canada, Mexico, Puerto Rico, and China.

For many North American package printers, the Scorecard’s impact has already been felt. Himmelein attributes some of CardPak’s success with its EcoLogical Line to the Wal-Mart Scorecard. “Wal-Mart is the driving force in sustainable package leadership,” he says. “Our customers know this and we, in turn, want to be able to meet our customers’ needs. This is a growth opportunity for us as a company. Two years ago the EcoLogical Line of packaging did not exist at CardPak, and today it is almost 50 percent of our total product mix.”

“The Scorecard has had a positive impact on how we approach our business and our customers,” adds Bacchetta.

With the focus that the Scorecard is receiving from the packaging arena, it appears that Wal-Mart is well on its way to achieving its 2013 goal of a 5 percent reduction in packaging throughout its supply chain.

-- CardPak Inc.

Sustainability story telling

'Sustainability' still has some growing up to do as a concept and label. It brings about many opinions and debates... some see it as a marketing ploy, while others see it as a sincere and legit foundation of doing business. Either way, 'sustainability' success stories need to be shared with hopes that these stories will help other ideas and initiatives to be developed and fueled. Plus, the more success that is being reported, the less negative connotations will be linked to the term.

For example, GE has been telling such a story on the back of their CFL light bulb packaging. GE backed up the talk by reducing the amount of plastic used in the packaging and replacing the plastic with recycled and recyclable materials.

Wal-Mart scorecard proof aside... this package is one of the best on-the-market examples of what is possible when considering and developing sustainable packaging.

As we look ahead to 2009, GE was ahead of the times with this sort of 'story telling' approach.

As the new year approaches, consumers will be seeing more and more 'green stories' being told on the packaging of products they buy. Sustainability labels will also become a common sight, with major retailers like Wal-Mart hoping to standardize and require such information.

The labels, which some companies have already starting using (hoping for a competitive edge) will have information on the various categories like: carbon footprint, an index measuring recycled content, what raw materials were used to produce the product and/or package, and how sustainable those materials are.

Sustainability labels will soon become as common as nutrition labels on food, especially since it will be driven by the retailers, which is great for the everyday consumer looking to make a difference.

-- CardPak Inc.