As a former merchandising executive, Rand Waddoups, Wal-Mart's Senior Director of Corporate Strategy and Sustainability, knows the value of a well-managed supply chain. SLM asked Rand about his company's major sustainability overhaul and what it means for Wal-Mart suppliers.

Rand: In 2005, Wal-Mart set three long-term goals that would help it become a more environmentally friendly business: to create zero waste, be supplied by 100% renewable energy and sell products that sustain our resources and environment. These are extremely aggressive goals that stretch the company, so, of course, I worry about our progress. But what good is a goal you dont worry about? I believe that this company will continue to make great strides toward these goals, even though we realize we have a long way to go. By working with our suppliers and manufacturers, we are incorporating sustainable business practices throughout the supply chain. These goals are not only good for our business, but they are also good for the environment and help our customers live better. Its just the right thing to do.

SLM: Before your tenure as senior director of strategy and sustainability at Wal-Mart, you spent several years in the company's merchandising department, managing everything from orange juice to potato chips. Given Wal-Mart's recent push to establish a more sustainable supply chain, how has your background in purchasing helped prepare you for your current role? Has it given you any insight into how best to work with suppliers on green initiatives?

Rand: My experience has provided me with an understanding of, and appreciation for, the steps our buyers are taking to help us become a more sustainable company their goals, how they make purchasing decisions and their relationships with suppliers. Our buyers play a key role in making the products we carry on our shelves more sustainable.

Training our buyers to consider sustainability when they are making purchasing decisions is essential, and we are doing that now. Our buyers consider a variety of elements when purchasing products for our stores, including design, functionality, and price, as well as sustainability. Whether its a reduction in packaging or a more energy-efficient development process, sustainability gives our buyers and our suppliers a lens by which they can reduce waste and meet customer demand while making a difference in the world.

SLM: What are you looking for from partner brands or suppliers in terms of their own efforts to support the company's new sustainability focus?

Rand: Being the global retailer that we are, Wal-Mart realizes its unique position to drive positive change throughout the supply chain. We are working with all of our suppliers to integrate sustainable practices into their businesses. We have a deep respect for what many of our suppliers have already done with regard to sustainability, and there is so much more we can do. Its exciting to think of the size of this opportunity. When our suppliers make one product more sustainable, that change benefits all of the retailers that carry the suppliers product. We have found that our suppliers want to be part of something that improves our environment and the lives of customers, while making a positive change in their business.

SLM: Wal-Mart has made headlines with its "sustainability scorecards" for suppliers and product packaging. If you had to create a scorecard for the company's sustainability efforts as a whole, how would you rate your progress? Where are you succeeding, where are you encountering challenges, and where are you focusing energy on improvement?

Rand: Wal-Mart is committed to achieving its sustainability goals and were very proud of the progress that we have made thus far. But we realize that this journey still has a long way to go. Our CEO, Lee Scott, recently said that were still not at the point where we can start reaching for the low-hanging fruit. Were still picking up the fruit that has already hit the ground.

We are constantly looking for environmentally-friendly solutions and are actively testing new products and initiatives, some of which are successful, some of which are not. There are of course some areas where we are not pleased with the progress. But, it would not be appropriate to point out one particular project that did not turn out as expected; we recognize the importance of creativity and innovation in driving real change.

SLM: What can other companies learn from you about your experience so far? What advice do you have for businesses attempting their own sustainability transformations? Any pitfalls to avoid?

Rand: All of us in this industry are in a unique position to drive positive change throughout the supply chain by working together to make better decisions that are good for our business, our customers and the environment. We have learned that becoming sustainable is a journey, not a sprint. Any company that wants to become more sustainable needs to realize that the journey will have many ups, downs and turns. But changes, whether small or large, will have a positive impact on the business, the employees, the customer and the environment. My only advice would be to start if you havent, and increase your efforts if you have. I have found that the results will be pleasantly surprising.

SLM: Where can readers learn more about Wal-Mart's sustainability efforts?

Rand: You can see many of our efforts in your nearest Wal-Mart store, or you can visit www.walmartfacts.com to read about our many initiatives and projects. I hope to share more of whats been done and whats to come at the conference.