verge 2014 the road to sustainable freight transportation · the road to sustainable freight...

How Business Leaders Cut Carbon, Cut Costs & Create a Stronger Supply Chain

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The Road to Sustainable Freight Transportation:

V E R G E 2 0 1 4 !

{ } Why Should You Take On Supply Chain Sustainability?!

1.  Next logical step!2.  Right thing to do!3.  Big opportunities for improvement!

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{ } Why You Might NOT Be Taking On Supply Chain Sustainability?!

1.  Yet another thing…!2.  How to get buy in/resources/support

for yet another thing…!3.  Not sure where to begin…!

!

{ } Supply Chain Sustainability Case Study:

Freight Supply Chain at Hewlett Packard

VP of Americas Supply Chain Operations, Hewlett Packard!

Mark Bakker

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 8

HP’s portfolio of businesses Enterprise Group

Printing & Personal Systems

Software

•  Strong enterprise-grade services portfolio

•  Advising our clients and helping them transform and manage their IT environment and services to deliver industry-leading business outcomes

•  World-class IT operations and projects

•  Deep relationships across the world’s largest enterprises

•  Global scale and presence

•  Industry-leading innovation in design and ease of use

•  Strong product quality, compatibility and security

•  Lower costs and reduced environmental impact

•  Significant, leading share positions

•  Unmatched scale, distribution, and IP in the industry

•  Optimizing the user experience through modern IT applications, operations, and cloud management

•  Industry leading IP with capabilities across Cloud, IT Management, Security, and Big Data

•  Platform agnostic and open standard-based software

•  Unmatched assets in storage, networking and servers

•  Industry leading Converged Infrastructure, Software-defined Data Center, and Converged Cloud

•  Modern architectures across infrastructure stack, based on open systems

•  Strong share position

Enterprise Services

$23B

$56B $28B $4B

VP of Hi Tech & Sustainability, !Menlo Logistics!

Lonny Warner

Menlo Logis+cs Global Non-‐Asset Based Third Party Logis8cs Provider

| Menlo Logis+cs | Proprietary and Confiden+al |

Geographic scope 20 countries / five continents Global warehousing 20 million ft2

Global Purchased Transportation $1.5 billion 2013 Revenue $1.5 billion (€1.1 billion)

Sydney

San Francisco

Monterrey Guadalajara Mexico City

Auburn Hills Aurora Toronto

San+ago

Delhi

Mumbai

Singapore Kuala Lumpur

Hong Kong

Shanghai Guangzhou

São Paulo

Beijing Xian

Chengdu

Ürümqi

Wuhan

Bangkok

Shenyang

Amsterdam

RoRerdam Eersel Hahn

Prague Dublin

Lima

11 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

“The betterment of our society is not a job to be left to a few. It is a responsibility to be shared by

all” David Packard

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

HP Living Progress: Action + Innovation HP drives progress on multiple fronts through action and innovation

Human Progress

Environmental Progress

Economic Progress

The Three Pillars of Menlo’s Sustainability Program


People Planet

Commitment to Planet includes the conserva+on of natural resources and suppor+ng business

prac+ces that protect our natural environment.

Commitment to Prosperity means we foster crea+vity and innova+on to enable

future growth while protec+ng the

environment and increasing profits.

Prosperity

Over the past decade, Menlo’s commitment to sustainability and reducing waste grew from our Lean opera+ng culture and objec+ve to be a leader in supply chain sustainability.

Commitment to People means fostering

contribu+ons from associates, vendors and supply chain partners to achieve sustainability

goals within our communi+es and

opera+ng environments.

Our principles improve our collec+ve ability to achieve our customers sustainability goals


Contribute to our Communi+es

Reduce greenhouse gas (GHG) emissions

Reduce Natural Resource Consump+on

Strive to contribute zero waste to landfills through preven+on, minimiza+on, reuse and recycling

Give priority to sustainable products and partners


Goals: Percent reduction in GHG emissions intensity by 2020 (from 2010 baseline)

20% 20% 40%


HP Carbon Footprint – Product Transportation Goal

Drive a 20 percent decrease in its first-tier manufacturing and product transportation-related GHG emissions intensity by 2020, compared to 2010

- Increase the efficiency of our product transportation network (minimize size/weight of shipments, decrease distance products travel, shift towards environmentally friendly transport modes)

Opportuni+es to improve supply chain sustainability exist across the value chain


Supplier

Commercial Documenta+on Repor+ng &

Performance Metrics FORECAST TO SUPPLIER

Visibility and Tracking

Origin Consolida+on Supplier

Assembly Pick-‐up/ Transfer Delivery Inbound

Warehouse Customs Clearance Transporta+on

ADVANCE SHIPMENT NOTICE (ASN) STATUS UPDATE

EVENTS AND MILESTONE STAGES

Menlo TMS ADVANCE SHIPMENT NOTICE (ASN)

MATERIAL MANAGEMENT & CONSOLIDATION

DOCUMENTATION, TRACKING, AND REPORTING SHIPMENT RELEASE

TRANSPORTATION MANAGEMENT REGULATORY

MANAGEMENT FREIGHT PAYMENT TOTAL LANDED

COST ANALYSIS

SUPPLIER ORDER MANAGEMENT SYSTEM

ORDERING & PLANNING SYSTEMS

EDI FORECAST/RELEASE

OEM ERP SYSTEMS MANUFACTURING PLANT MRP SYSTEM


INVENTORY MGMT. •  Safety Stock •  Buffer Stock •  Min/Max Release Triggers

A materiality assessment allowed us to priori+ze what key stakeholders want


Note: Numbers correspond to GRI V3 Environmental Indicators

Material GRI Environmental Indicators

SMARTWAY

SHIPPERS

3rd PARTY LOGISTICS

COMPANIES

CARRIERS

How SmartWay Works

SmartWay Partner Companies… Measure and

Reduce Carbon Footprint

Benchmark Performance

Report Results

Innovate Operations

Improve Efficiency


HP’s Global Supply Chain…

Daily – We transport more than 1M products globally Ship to 170+ countries worldwide Track annual Product Transport CO2 footprint since 2009

Reduce GHG Emissions by 20% by 2020 – HP Company Goal US / Canada transportation network utilizes 100% SmartWay Partners Since 2008 SmartWay Logos on HP Product Packaging Our Customers Care… - Billions of Dollars of RFQs (Environmental Components) - Sustainability a Differentiator

105 PCs

7 Servers

880 Ink / Toner Cartridges

Every 60 Seconds...

88 Printers

Strategic collabora+on fosters impacjul changes across the supply chain


Lean tools and approach enable year over year gains in sustainability performance


Create Current State Value Stream Map (VSM)

Iden+fy Kaizen Opportuni+es

Establish Con+nuous Improvement Roadmap (CIR) Conduct Kaizens events

Design Future State VSM

Update CIR and communicate with internal Team and Leadership Monthly

Update VSM every 6 months

Opportuni+es to improve supply chain sustainability exist across the value chain


Supplier

Commercial Documenta+on Repor+ng &

Performance Metrics FORECAST TO SUPPLIER

Visibility and Tracking

Origin Consolida+on Supplier

Assembly Pick-‐up/ Transfer Delivery Inbound

Warehouse Customs Clearance Transporta+on

ADVANCE SHIPMENT NOTICE (ASN) STATUS UPDATE

EVENTS AND MILESTONE STAGES

Menlo TMS ADVANCE SHIPMENT NOTICE (ASN)

MATERIAL MANAGEMENT & CONSOLIDATION

DOCUMENTATION, TRACKING, AND REPORTING SHIPMENT RELEASE

TRANSPORTATION MANAGEMENT REGULATORY

MANAGEMENT FREIGHT PAYMENT TOTAL LANDED

COST ANALYSIS

SUPPLIER ORDER MANAGEMENT SYSTEM


EDI FORECAST/RELEASE

OEM ERP SYSTEMS MANUFACTURING PLANT MRP SYSTEM


INVENTORY MGMT. •  Safety Stock •  Buffer Stock •  Min/Max Release Triggers

Improve vehicle fuel efficiency

Improve load factor Reduce ton-‐

miles

Mode Shio

SmartWay procurement

goals

Warehouse resource efficiency

GHG repor+ng


DC’s

Center Pools

West Coast Hub San Bernardino –

Menlo

El Paso/Socorro

Indianapolis Sandston

We have been able to successfully reduce GHG emissions over 12,000 MT for HP


HP’s New Logistics Gateways… Trans-Eurasian Rail -Chongqing, China to Western Europe Port of Piraeus (Greece) -Asia to Europe, Middle East and Africa Panama Canal -Expansion program completed by end of 2015 Benefits: •  Simplify Global Network •  Improve End to End Transit Times •  Reduce Inventory Costs •  Decrease CO2 emissions

!  Mode Conversion !  Decrease Distance


HP Global Logistics Environment Associations

Trucking

Air Freight

Ocean Freight

US EPA SmartWay

Global Logistics Emissions Council

Climate and Clean Air Coalition (UN)

Clean Cargo Working Group

Green Freight Europe

Green Freight Asia

International Air Transport Assoc.

Green Freight Latin America

China Green Freight Initiative

!  Industry Leadership

CarbonNet helps our customers track emissions across the supply chain


Interna+onal Supplier

15 MT CO2

Port of Exit

3,500 MT CO2

Port of Entry

1,500 MT CO2

Rail Yard

60 MT CO2

Warehouse

2,700 MT CO2

Retail #1

825 MT CO2

CarbonNetTM supports emission reduc+on strategies by analyzing warehouse and carrier emission data and visualizing performance across the en+re supply chain

Understanding and proac+vely managing your SC CO2 footprint will improve resilience as requirements + expecta+ons increase


HP Logistics Environmental Opportunities… Environmental Criteria Utilize environmental factors in the LSP selection process

Total Cost of Busines

s

Cost Savings " CO2 Reductions Network Enhancement and Optimization Programs Drive CO2 Reductions Weight / Distance / Mode of Transport

Logistics CO2 Reduction Programs Increase the efficiency of our product transportation network •  Minimize size/weight of shipments •  Decrease distance products travel - consolidate

shipments •  Shift towards environmentally friendly transport

modes - Air to Ocean, Truck to Rail, etc.

•  Influence our logistics services providers (LSPs) to decrease emissions

•  Redesign product packaging to optimize product transportation


Making a Positive Impact Around the World

Environment We’re transforming how people live and work to be more sustainable, with tools and solutions that allow them to achieve more with less.

Education We’re empowering the next generation of innovators with breakthrough products and solutions that advance STEM teaching and learning.

Healthcare We’re making a positive impact on global health, helping to save lives thorough our partnerships, technology, and mobile health solutions.

Community Engagement We’re making a positive impact through 330,000+ employees who give their time and talent to make a difference.

“Global Citizenship one of seven Corporate Objectives since 1957”


1.  Assess supply chain efficiency gaps 2.  Set standards and goals 3.  Benchmark supplier performance and engage suppliers in

improving 4.  Leverage government programs and resources 5.  Measure progress/make continuous improvements 6.  Collaborate with suppliers, government and industry leaders

Six Steps to A More Sustainable Freight Supply Chain

For more information:

www.epa.gov/smartway

[email protected] SmartWay Helpline 734-214-4767 Tracie Jackson Hall 734-214-4871 [email protected]

THANK YOU

verge 2014 the road to sustainable freight transportation · the road to sustainable freight...

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