Highway Funding Structure: Wal-Mart's Innovations in Logistics

Highway Funding Structure: Wal-Mart's Innovations in Logistics The United States has one of the most complicated road systems in the entire world. These complexities have a number of head aches, but also some serious luxuries that allow American motorists to enjoy traveling in a more streamlined manner than anywhere else on the globe. As more and more cars get on the road, there is ultimately more pollution. As such, companies like Wal-Mart are taking innovative initiatives to help generate greater levels of sustainability in transportation services.

The majority of funding for highway structures throughout the country comes directly from the tax payers. In fact, the research suggests that "federal highway spending is funded mainly through taxes on gasoline and other motor fuels that accrue to the Highway Trust Fund" (Berman, 2010, p 3). This is an enormous cost, and one which carries with it a number of both positives and negatives for those tax payers footing the bill for the funding of transportation services.

For one, it is definitely not enjoyable funding massive projects, and often tax payer reservoir funding can be drained by massive contracts that lag on for years. Recently, Congress has allowed for greater spending on transportation services, including highway infrastructures. As such, the burden on tax payers is getting bigger, although they are happy to see much better transportation system being brought to them through their tax funding. Still, much of the money spent by the average tax payers on transportation services are brought back into their community.

Here, the research suggests that "about 80% of the money the federal government spends goes to grants to state governments under formulas that allocate funds for such purposes as construction, rehabilitation of existing roads, and safety programs" (Berman, 2010, p 4). As such, the tax payers who fund the majority of projects often see their money spent in their own districts. Federal grants help support state and local transportation services, so that tax payers get to enjoy the fruits of their labor.

Yet, one of the biggest cons is our nation's transportation system's impact on the environment. So many travelers on the road means more pollution. As each new transportation project goes underway, the environment is more and more endangered, and that ultimately impacts tax payers as well. Sustainability efforts by Wal-Mart will impact the larger logistics industry. The company recently "announced that it's taking major steps to eliminate 20 million metric tons of greenhouse gas emissions (GHG) from its global supply chain by the end of 2015" (Berman, 2010, p 1).

According to the company, this is like taking 3.8 million cars off of the transportation systems. Wal-Mart is aiming to help reduce its own carbon footprint by using much more eco-friendly vehicles in its massive fleet. This coupled with its promise to use more eco-friendly production practices with less product packaging. With efforts like these from major companies like Wal-Mart, American motorists can enjoy the roads with less guilt. Wal-Mart's innovation will help improve the general environment for.