green supply chain 2010

WELCOME to the FORUM

The Green Supply Chain 2010

Supply Link VS Supply Chain

Bryan LarkinChief Supply Chain StrategistDigital Management

Steve KeiferVP Industry Marketing

GXS

WELCOME to the FORUM2

Agenda

Why Green MattersAreas of Business Focus– Sourcing– Manufacturing– Packaging– Logistics– Information Technology

Five Things You Can Do

"Being a good steward of the environment and in our communities, and being an efficient and profitable business, are not mutually exclusive. In fact they are one in the same."

-- Lee Scott, Former CEO Wal-Mart, Twenty First Century Leadership, October 24, 2005


Why Focus on Sustainability?


Corporate Social Responsibility

4

Environment& Resources

Community Support

HumanRights

Equal Opportunity& Diversity

Product Quality & Safety

Health &Wellness


Media is Raising Awareness

5


The Past 4 Years

6

2008-20092006-2007


Important to Consumers

7

Turn off home electronics not in use

Recycle or reuse products

Use low-energy light bulbs

Use less water

Bring my own bags to grocery store

Use energy-efficient appliances

Use my car as little as possible

Purchase locally produced products

Improve insulation in my home

Buy products without packaging

1

2

3

4

5

6

7

8

9

10

Source: Boston Consulting Group – Capturing the Green Advantage for Consumer Companies

What actions will you take to be green today and in the future?


Important to Shareholders

8


Important to Retailers

9

Greener Options – Environmentally friendly merchandise selection – CFL light bulbs; low flow showerheads; natural fertilizer

Sustainability 360 – Supplier Sustainability Assessment. Supplied by 100% renewable energy. To create zero waste.

Sustainable Forestry – Preference to wood from forests managed in a responsible way. Eliminate purchasing from endangered regions of the world.

LEADS (Lowes Energy Awareness Delivers Savings) –Efficient Store Operations reducing water & energy usage at 1650+ stores.

Helpful Earth Choices – Help to identify environmentally-friendly products – organic pest control; rain barrels

The HomeDepot

Lowes

ACEHardware

Walmart

TrueValue


Important to Regulators

10

WELCOME to the FORUM11http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and-

Demand-Chain-Executive-Announces-Its-2009-Green-Supply-Chain-Awards/60$11835

• AMD Corporation• ATC Logistics &

Electronics• CaseStack, Inc.• Cass Information

Systems, Inc.• Conexant Systems,

Inc.• Container and Pooling

Solutions (CAPS)• Con-way Inc.• D.W. Morgan Company• DSC Logistics• Flash Global Logistics• Global4PL• Hewlett-Packard

Company• HIS• INSIGHT, Inc.• Integration Point• Interface, Inc

• Ivalua Inc.• JIT Reshippables,

Inc.• ModusLink Global

Solutions• Optiant• Ryder• Schneider Electric• SciQuest, Inc.• SigmaQuest• SmartTurn• Strive Logistics, LLC• SYSPRO• The Evans Network

of Companies• Total Logistic Control• Transplace• Transzap, Inc.• UPS• Williams-Sonoma

Congrats to Schneider Electric

Source: Supply and Demand Chain Executive

http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and-Demand-Chain-Executive-Announces-Its-2009-Green-Supply-Chain-Awards/60$11835




A Change in Perspective

12

“A recent study found the average American golfer walks about 900 miles a

year. Another study found American golfers drink, on

average, 22 gallons of alcohol a year.

That means, on average, American golfers get about

41 miles to the gallon.

Kind of makes you proud…”

Source: Internet


Green Sourcing


Green SourcingSmarter for Your Business and the Environment

Sourcing &Manufacturing

Packaging &Transportation

Usage &Disposal

– Accurate Weights –Pallet Level

– Packaging or Product made from Recycled Content

– Packaging Configurations & Dimensions – SKU, Case, Pallet

– Materials Composition –Lead, Mercury, Cadmium

– Manufacturing Process uses Renewable Energy Sources

– Paints, coatings, plastics containing SCCPs

– Recyclable – Whole Product or Components

– Recycling Instructions Well Understood and process is Practical

– Energy Usage – On, Off and Standby Mode

– Useful Life Expectancy – Upgradable, Easily Repaired


China – Going Green?

15

Recycling Programs for Raw Materials

Recycling Programs for Reusable Parts

Measure and Ensure Green SCM Compliance

Improved Labor Management

Measuring Company’s Carbon Footprint

Reducing CO2 in Manufacturing Processes

Include Recycling in New Product Design

Increasing Product Robustness in Design

Applying Carbon Off-Setting

Other

49%

38%

32%

30%

27%

27%

26%

19%

8%

7%

Source: Global Supply Chain Council – Survey of 145 Chinese Businesses (February 2010)

Green Production & Manufacturing Initiatives in China


Surveying Supplier Compliance

16



Manufacturing


The contemporary emphasis on cycle time compression, for example, may result in a multitude of smaller shipments moving by fast, fuel-inefficient forms of transportation. Environmentally responsible logistics programs, by contrast, are more comfortable with fewer, larger shipments moving by slow, fuel-efficient forms of transportation.

Green Logistics Strategies: An Analysis of Usage Patterns.By POIST, RICHARD F.Publication: Transportation JournalDate: Friday, December 22 2000(referencing Haw-Jan Wu and Steven Dunn)

Is Lean Necessarily Green?


We talk about supply chains….

But how many of us only know about our supply links – our immediate suppliers and customers?

The future belongs to multi-tier visibility:

• What do our customers’ customers want?

• What are our suppliers’ suppliers doing?

Do You Track a Chain or a Link?


If you don’t know what your customers’

customers or suppliers’

suppliers are doing, will they

be like an anchor for your

business?

If there is a problem with a consumer-oriented product, the CPSC can ask for the history of any product shipped to or within the US. The can ask

for information on who produced which components and when – and what compounds or ingredients

were used in production. Are you ready to provide this information this if you have a problem?

Or will understanding

them be a sense of

strength for you?


Green Packaging


Packaging Opportunities

22


Example - Bottled Water

Packaging Initiatives

• Change shape - less surface area• Less weight for plastic materials• Reduce shrink wrapping on cases• Eliminate corrugated cardboard• Reduce size and weight of labels• 100% recyclable PET materials

200 Billion Bottles of Water Consumed

Globally

Only 23.4% Recycled

Source: Wikipedia; Corporate Sustainability Reports – Nestle, Coca Cola, Danone


Packaging Dimensions

Enables exchange of packaging dimensions for consumer unit (each); grouped packaging (case) and transport packaging (pallet)

Image Source: GS1 – GDSN Package Measurement Rules


Global Data Synchronization

25

Global DataSynchronization

Network

Global Data Synchronization Network

enables exchange of product data with trading

partners worldwide

SourceDataPool

DataPool

DataPool

RecipientDataPool

DataPool

DataPool

Suppliers Publish Product Catalog Data to a Local “Data Pool”

Retailers Subscribe to Updated Product Data from a Local “Data Pool”

Product InformationManager

Product InformationManager

MarketingPackaging

Price

PromotionsTrade

Regulatory

MarketingPackaging

Price

PromotionsTrade

Regulatory


Green Transportation


Shipping by Train is Greener

27

If you are using trucks, can you move your produce by rail instead?


Rail VS Truck: CO2 Emissions

28

Results from the CSX Clean Air Challenge – Carbon Calculatorhttp://www.csx.com/?fuseaction=customers.emissions_carboncalculator


Shipping by Ship is Greener

29

Have you considered coastal (Short Sea) shipping instead of trucks?

www.greenships.org

Source: Texas Transportation Institute and University of Texas

http://www.greenships.org/


Europe Leading the Way

30

Europe has many Short Sea Shipping routes.

• Reduced Road Congestion• Increased road safety• Reduced noise pollution• Reduced road and maintenance costs

• Less vulnerable to high oil prices• Reduced fuel consumption• Less reliance on imported fuel• Smaller carbon footprint

Benefits to Short Sea Shipping:www.shortsea.nl

www.greenships.org

http://www.shortsea.nl/

http://www.greenships.org/


Green IT -Sustainability Reporting


Sustainability Reporting

32

Strategy & AnalysisReport ParametersGovernance & CommitmentsEnvironmental Impact• Materials• Energy• Water• Biodiversity• Emissions, Effluents, Waste• Products and Services• Compliance• Transport

Source: Global Reporting Initiative – www.globalreporting.org

http://www.globalreporting.org/


Carbon Management Systems

33


Carbon Trading Markets

34


Green Benefits of AutomationStrengthening Your Competitive Advantage

Business impact

Digitized Documents Digitized Processes

Improved Electronic

ForecastingPoint of SaleData Sharing

Electronic Orders

Electronic Order

Changes

Electronic Acknow

ledgementElectronic Invoices

Advance Ship

NoticesCarrier Status

Order Lifecycle Visibility

LogisticsVisibility

eInvoicingwith Match

Inventory Visibility

Reduce Safety StockReduceExpeditingReduce Paper UsageReduce Overages in ShipmentOptimizeTransportationReduce Overall ErrorsReduce Manual EffortsImprove order-to-settlement

Automating the exchange of documents and processes results in significant positive business impact through reduced errors, manufacturing improvements, logistics improvements and financial improvements. An added benefit is the sustainability aspect – automation helps companies meet their corporate environmental goals.

Direct Green ImpactTangential Green Impact



1. Investigate Green IT options for you business

2. Carbon Management Systems (shareholder, government,

supplier/retailer requirements)

3. Supply Chain Integration

4. Investigate tools to support flexibility in operational models

(JIT/Lean vs Sustainable; Truck vs Train vs coastal shipping)

5. Sign up for a supply chain sustainability assessment


EDI & B2B e-Commerce

38

2.3 billion pounds of CO2, the equivalent of taking 206,672 cars off the road for a year or reducing gasoline consumption by 434 million gallons or 8.9 million barrels of oil1,386,667 tons of wood, the equivalent of 9.6 million trees15.3 million BTUs of total energy consumption, the equivalent of about 168,633 homes/year 7.6 billion gallons of wastewater, the equivalent of about 11,553 swimming pools 911 million pounds of solid waste, the equivalent of about 32,548 garbage trucks.

By removing the paper from supply chain transactions, we could eliminate…

Source: Environmental Defense Fund Paper Calculator


Sustainability Assessment

39

o Bring your total number of business documents shared per year• Paper based• Electronic

o We’ll provide a quick Supply Chain Sustainability Assessment, including a certificate you can share with your corporate sustainability leaders, and we’ll let you know things you can do to help improve your business’ carbon footprint!


Earth Day

40

Earth DayApril 22nd


Contact Details

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Bryan Scott Larkin– Chief Supply Chain Strategist, Digital Management, Inc.– [email protected]– http://www.digitalmanagement.com– Twitter: @bslarkin

Steve Keifer– VP of Product and Industry Marketing, GXS– [email protected]– http://www.gxs.com– Twitter: @smkeifer

mailto:[email protected]

http://www.digitalmanagement.com/

mailto:[email protected]

http://www.gxs.com/

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