Weir tscs sustainable procurement presentation c stanley feb 2011 (hf000001450262)

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  • What is cider made from? Of course we start with apples, which are presses to extract juice. The solid parts can be sold as animal feed or agricultural dressing.Most ciders also use additional concentrated apple juice – pressed elsewhere – and some other small ingredients like sugar and citric acid.The fermentation process is activated with special yeasts and causes the production of CO2 and a temperature rise which has to be controlled by using chilled water. The CO2 can be recovered and used in the product storage, though some will be lost to atmosphere.In this example the cider is filled into glass bottles. Glass production is energy intensive from the extraction of the raw materials through to actual glass-making. And as glass is heavy, the transport is relatively expensive compared to plastic bottles or cans – and as there are few glass bottle manufacturers distances involed may be significant.Packing is a relatively low energy process, and then the finished bottled product is usually wrapped in a cardboard sleeve to protect during transportation.As the product is heavy, significant transport costs and energy are used to distribute the product to the customer’s warehouse and then to the retail outlet. The product is often chilled at point of purchase in shops, bars, pubs, restaurants etc and the energy used for this should be taken into account. The consumer may also take home product and store in the refrigerator.In this example we have not considered what happens to the pack after consumption. In many countries, the bottle is disposable and may end up in landfill. IN some countries the bottles are recycled and sent back to the factory for washing and re-use. On average a single bottle makes 8 trips round the loop.

Transcript

  • 1. Towards Supply Chain Sustainability
    • Sustainable Procurement
    Chris Stanley, Weir-tscs Ltd
  • 2. Weir-tscs : What we do
    Enabling organisations to understand and address the broad range of Sustainability issues across the End-to-End supply chain.
    Providing expertise and a support framework for developing a Sustainability Strategy and detailed tactical implementation plans.
    Supporting implementation and measuring progress on the journey towards Total Supply Chain Sustainability.
    Working alongside client teams to deliver real Business results
  • 3. Sustainability matters – to your customers and to your business
    Shape
    Manage
    Climate change
    • Carbon reduction
    Lifestyle changes
    • New products & services
    Ethical Awareness
    • Supply chain responsibility
    Scarce Resources
    • Managing use and cost
    Conflict
    • Supply chain risks
    Legislation & Regulation
    • Compliance and reporting
    Economic Shifts
    • Shifting market sizes
    Comply
    Monitor
  • 4. There is a clear correlation between advancing the Sustainability agenda & Business Benefits
    Business Benefits
    Mastery
    Advanced
    Developing
    £ value achieved
    Stagnant
    Sustainability benchmark score
    Source : WEIR-tscs research and Aberdeen Research group 2009
  • 5. A Sustainability focus offers significant improvement opportunities
    Indicative potential cost savings in 3 key areas
    Source : WEIR-tscs research and Aberdeen Research group 2009
  • 6. A Sustainability focus offers significant improvement opportunities
    The Sustainability Leaders have a structured framework, action programmes, and track and report their progress to stakeholders
    Indicative potential cost savings in 3 key areas
    Source : WEIR-tscs research and Aberdeen Research group 2009
  • 7. But the focus needs to shift to the supply side
    H&M found to be falsely claiming the cotton from India used in their clothing is Organic
    MarsPetfoods withdraws product from shelves after contamination found in ingredient
    Nestle under attack for using palm oil from Sinar Maes
    Channel 4 uncovers sweatshops in Leicester supplying clothing to Arcadia
    Vedanta’s plan to mine aluminium ore in India is blocked and £300m wiped off its market value
    Thousands of tubes of fake Colgate toothpaste have been recalled by Sainsbury‘s
    Mattel again recalls over 10 million Fisher-Price toys
    The adverse publicity for Sustainability failures is much higher than for simple supply chain failures – and has real consequences for share price and profitability
  • 8. Our benchmarking confirms this need
  • 9. A typical supply chain – where is the impact of procurement?
    Apples
    Pressing
    Waste
    Apple juice conc.
    RM Storage
    Product Storage
    Fermentation
    Other Ingredients
    Glass Bottles
    Packaging Storage
    Packing
    Finished Goods Storage
    Secondary packaging
    Customer Warehouse
    Retail Outlet
  • 10. Why is sustainable procurement important?
    What is sustainable procurement?
    Considering environmental and social impacts of what you buy
    Taking responsibility for the footprint of your supply chain
    Balancing environmental and social factors in the purchase decision alongside the traditional elements of cost, quality, service and risk
    Ensuring supply risks are identified and mitigated
    Collaborating with suppliers to reduce costs and develop innovation
    Environmental
    Economic
    Social
    16/02/2011
    10
  • 11. How mature is your organisation?
  • 12. First steps – identify risks and uncover opportunities
    Intra-Company movements in U.K. & Europe
    6Non-certified
    What are the risks in my Supply Chain? Where do they occur?
    What will be the impacts? Major Costs? Hits to Brand reputation?
    What are the probabilities? What can be done to reduce the risks?
    What Opportunities are there where supplier development can add value?
    Product Category D
    (RAW MATERIALS)
    SUPPLIER D.C.
    CORBY D.C.
    RETURNS
    RETURNS
    Product Category C
    5Philips
    trucks
    (MANUFACTURE)
    A3Outbound
    deliveries
    Product Category B
    IN USE
    POST USE
    19Key Account
    team travel
    Product Category A
    8DC space
    & equipment
    M2
    3 Supplier
    pollution
    % fill
    Carbon
    PACKAGING
    PACKAGING
    PACKAGING
    kW Hrs
    Scarce Materials
    PACKAGING
    TRANSPORT
    TRANSPORT
    TRANSPORT
    RETURNS
    Water
    32 Returns
    to Philips
    13+1 Energy to
    scrap & recycle
    6Incorrect
    Use
    Working Conditions
    CUSTOMER SITE
    END of LIFE
    TRANSPORT
    £££
    tonnes
    TRADE COUNTER
    Kgs
    Ethical Treatment
    21 Print/send
    catalogue(s)
    A8Waste lamp
    collection
    TRANSPORT
    TRANSPORT
    TRANSPORT
  • 38. THANK YOU!
    To contact us:
    Web: www.weir-tscs.com
    email: Chris.stanley@weir-tscs.com