sustainable value chain management

8/10/2019 Sustainable Value Chain Management

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2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 2 | October 2013

Your Presenters

Dr. Ren Schmidpeter

Academic Director

Centre for Humane Market EconomySalzburg, AUSTRIA

Lecturer: Advanced Business Ethics & EconomicsUniversity of Eichstaett-Ingolstadt, GERMANY

Michael Dheur

Founder & Managing Directorshared.value.chain Management Consultants

Munich, GERMANY

Editor of CSR und Value Chain Management(Springer-Gabler, October 2013)


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The Context for Business and Society is Set by

Constant Change and igher !nterde"endencies

Fossil Fuels Rare Earths Fertile Farmland Freshwater

Volatility ofDemand / Supply

New markets Changing

demographics

Interdependencies Disruption risks Staility of supply

networks

Record !rofits Societal Issues Compliance

Business Challenges Accelerators

What is the right

approach to value

creation?

Market Volatility Natural resources

Profit vs. PurposeGlobal Value Chainx

Man made

disasters

Natural disasters

Key Question


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The #uestion is o$ Businesses %""roach the &e$

Context to 'rie Value Creation

Value CreationApproach CORPORATE SOCIAL

RESPONSIBILITY AND VALUE

CHAIN MANAGEMENT

Approach of

Economy

GrowthParadigm

Perpetual

Sole Focus onEconomic Value

Economic, Ecologic,Societal Value

CircularLinear

Resource depleting Resource building

Two Worlds Two sides of the

same coin

Sustainable

CORPORATE SOCIAL

RESPONSIBILITY OR VALUE

CHAIN MANAGEMENT


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Outside-!n* Vie$+ ,oernents and Society .x"ect

/ore fro Businesses 0hen it Coes to CSR

CSR is a processwhereby companies integratesocial, environmental and ethical issues into their

business operationsand strategyin closeinteraction with their stakeholders, going beyond therequirements of applicable legislation and collectiveagreements.

A strategic approachto CSR is increasinglyimportant to the competitiveness of enterprises,helping them to create value both for owners andshareholders to win the trustand respect ofcitizens

Source: European Union CSR Strategy 2020


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CSR &eeds to be a /anageent %""roach to 1ulfil

the igh .x"ectations

Source: Edelman Trust Barometer 2011


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CSR %""lied as Part of a /anageent %""roach can

'elier Value Business and Society (Shared Value)


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Ca"turing the Value O""ortunities Re2uires 'riing

The Change !nside-Out* 1ro the Core Business

Organisation Stakeholder/Society

New Products and ServicesNew Processes

New MarketsNew Business ModelsNew Management- and Reportingsystems

Source: Eva Grieshuber (2012) in Schneider/Schmidpeter (Hrsg.): Corporate Social Responsibility, p. 375

The Core Business

(Products & Value

Chains)


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o$eer3 !n /any Co"anies There is a ,a"

Bet$een CSR and the Core Business

Quelle: shared.value.chain (2013)

Operations

CSR / Sustainability

SPR RD

Global Value Chain

Product Development

M

Legend: (P) Plan, (S) Source, (M) Make, (D) Deliver, (R) Return

Lifecycle Management

Global Value Chain


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To Bridge the ,a" !ntegration of Sustainability and Core

Business &eeds to a""en %cross the Value Chain

The SCC xCOR Toolkit can be used as areference to start the integration from the Core


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The xCOR Tool4it el"s to Bridge the ,a" and .nables

the 5 Building Bloc4s of Sustainable Value Creation

Value CreationStrategy

SustainableProducts

SustainableOperations

EnterpriseArchitecture

StakeholderCollaboration

BusinessPlanning

Continuous CostReduction

Supplier & PartnerNetworks

Product Strategy Value Chain Strategy Communication

Strategy

SCC xCOR Toolkit as Modeling Language

Design Philosophie

(Cradle to Cradle /Co-Creation) Lifecycle

Management Launch Management

Value Chain

Configuration Source, Make,

Deliver, ReturnPractices

Agile Organization Metrics & Reports IT Systems

Infrastructure

StakeholderEngagement

Obtain Voice of the

customer Obtain Voice of the

community

End-to-end Valuechain transparency

Planning Practices

(Sales & OperationsPlanning / IntegratedBusiness Planning)

Product CostReduction

Operations Cost

Reduction Environmental

Impact Reduction

Joint Innovation Business Continuity

Supply Assurance Lead time Reduction

1 2 3 4

5 6 7 8


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xCOR Su""orts the Transition 1ro Su""ly Chains

To$ards !ntegrated Value Chains

Sup

plierprocesses

Product DesignDCOR

Customerprocesses

Supply Chain SCOR

Sales & SupportCCOR

Product Lifecycle Management

An invaluable source of knowledge, frameworks, metrics and

benchmarks Eventually enabling your teams to make progress

based on a common language and facts (instead of emotions)

The SCC xCOR Value Chain Toolkit

Pro

duct

SupplyC

hain

Cu

stomer

Em

ployees


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%""lying xCOR to the Value Creations Points Can

el" to Bridge the ,a" 6 .xa"le+ Sourcing

Source: shared.value.chain (2013)

Review Areas

ValueCreation Point

SOURCE

Economic

Purchase Price

Product Quality Supplier Delivery Performance

Supplier Reliability

Ecologic

Depletion of local resources Impact on biodiversity

Options for renewable sources

Societal

Working conditions of supplier Local impact of SOURCE

process

How xCOR can help

Product

Supplier inclusion intodevelopment process

Lifecycle managementprocess

Supply Chain

Process templates

Best practices for sourcing& supplier collaboration

Joint metrics for economic,ecologic and societal KPIs

Collaboration

Mapping stakeholders andunderstanding of theirrequirements


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xCOR can el" to Connect all 'ots* and to .nable

Sustainability in the Core Business

Sustainable Product (PD & LCM)

Sustainable Operations (SCM)

Innovation

Use Phase &End-of-Life

Raw Material& Services

Your OrganizationSupplier Customer

RETURN

SOURCE MAKE DELIVER

Innovation

RETURN

PLAN

PLAN


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Seeral Co"anies ae 'ecided to 7ead the 0ay

To$ards Sustainable Value Creation

Value CreationStrategy

SustainableProducts

SustainableOperations

EnterpriseArchitecture

StakeholderCollaboration

BusinessPlanning

Continuous CostReduction

Supplier &Partner Networks

1

2

3

4

5

6

7

8

CreatingShared ValueProgram

Plan A

Committment

Energy SavingICsReducedImpacts duringUse Phase

SustainableSupply Chain

Sustainable

Apparel & SC

IntegratedScorecard

Measuringsustainability in

the Agro SC

RegionalAdministrationDevelopmentPartnership

Safe & Fair Labour

Planning for AssetRecovery

Demand-Supply

Synchronization

Logistics CostReduction

Environmental P&L

Empowering ruralwomenLocalized VanillaSC


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Conclusion 6 Sustainable Value Creation &eeds to be

'rien Through the Core Business

1Change Perspective Drive sustainable value

creation through the core business (Inside-Out)

2 Collaborate for Opportunities Integrate

Sustainability across the Value Chain

3

Get started - the xCOR toolkit gives you a

excellent starting position. Add the 6th senseof business (Sustainability) into the Model

going forward


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1ind out ore in CSR und Value Chain /anageent* 6

Sustainable Value Creation in %ction

Springer Publishers, German Language, Publishing Date October 2013For more Information please visit http://bit.ly/1fTcrWg

Independent

CapitalManagement AG


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T%&8 YO9

Michael Dheur, shared.value.chain+49 170 768 58 [email protected]

Dr. Ren Schmidpeter, Center for Humane Market Economy+49 173 255 48 59

[email protected]

sustainable value chain management

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