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

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