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Chris Colla from Sharp Electronics; ‘Drive Social and Environmental Values: Deliver business through the green initiatives that sync with your business and customers' needs’
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Chris Colla from Sharp Electronics; ‘Drive Social and Environmental Values: Deliver business through the green initiatives that sync with your business and customers' needs’

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  • 1. ENVIRONMENTAL SUPPLY CHAIN ENVIRONMENTAL SUPPLY CHAINTHE RISK OF NOT BEING A “GREEN” COMPANY Chris Colla Director - Supply Chain Process Management 1
  • 2. ENVIRONMENTAL SUPPLY CHAINOVERVIEW OF SHARP ELECTRONICS CORPORATION• Global Consumer Brand• Annual Revenue - $33B• Sharp Products – AQUOS LCD TV – Microwave Ovens – Insight Oven Ranges – Copiers – Faxes – Monitors – Air Purifiers – Air Conditioners – Calculators – Solar Panels 2
  • 3. ENVIRONMENTAL SUPPLY CHAIN U.S. EPA SMARTWAY TRANSPORT PARTNERSHIPBackground Data: • Commercial Freight Truck and Rail: – Travel Over 200 Billion Miles – Consume Over 40 Billion Gallons Of Fuel Today – Produce Approximately 350 Million Metric Tons Of CO2 40 billion gallons of gasoline and diesel 3
  • 4. ENVIRONMENTAL SUPPLY CHAIN U.S. EPA SMARTWAY TRANSPORT PARTNERSHIPGrowing Concerns About Transportation & Climate Change US Oil Consumption US Carbon Emissions *Includes all fuel sources Personal Vehicles 40% Other Transportation 27% Other Other Transportation Other Sectors 68% 13% Sectors 33% PersonalTransportation accounts for about: Vehicles 2/3 of oil consumption and 19% 1/3 of total CO2 emissions. 4
  • 5. ENVIRONMENTAL SUPPLY CHAIN U.S. EPA SMARTWAY TRANSPORT PARTNERSHIP Mobile Source Diesel Emissions Inventory by Sector NOx PM (6.3 million tons) (305,000 tons) other highwayschool bus school bus other highway 1% 3% 2% ports 3% ports transit transit 4% 5% 0% other nonroad 1% 4% other nonroad 9% agriculture Freight 8% Freight non-port marine 32% 9%construction 11% 56% non-port marine agriculture construction 13% 19% 21% 5
  • 6. ENVIRONMENTAL SUPPLY CHAINWORLD CO2 EMISSIONS BY TRANSPORT MODE 6
  • 7. ENVIRONMENTAL SUPPLY CHAIN U.S. EPA SMARTWAY TRANSPORT PARTNERSHIPThe SmartWay Transport Partnership Is An Innovative And Voluntary Collaboration Between The U.S. EPA And The Freight Industry To Increase Energy Efficiency While Significantly Reducing Greenhouse Gases And Air PollutionThere Are Four Primary Components Of The Program: • Creating Partnerships • Reducing All Unnecessary Engine Idling • Increasing The Efficiency And Use Of Rail And Intermodal Operations • Saving Money on Fuel Cost 7
  • 8. ENVIRONMENTAL SUPPLY CHAIN U.S. EPA SMARTWAY TRANSPORT PARTNERSHIP• Joined The SmartWay Program In 2004• 2006, 2007, 2008, & 2009 SmartWay Excellence Award Winner 8
  • 9. ENVIRONMENTAL SUPPLY CHAIN HOW DOES THE PARTNERSHIP WORK?Shippers: Carriers: – Top Of The Supply Chain, – Gain Competitive Drive Marketplace Demand Advantage: – Give Preferred Status To • Preferred Status, Plus SmartWay Carrier Partners • Fuel Efficiency, Savings – Get Better Data To Improve – Reduce Emissions Their Own Shipping – Integrate Fuel Saving Operations Technologies And Strategies – Modify Logistics Operations Into Fleets, Such As: To Improve Efficiency & • Idle Reduction Reduce Emissions, For • Improved Aerodynamics Example: • Efficient Tire Systems • Inter-modal Shipping • Driver Training • Full Truck Loads • Renewable Fuels • Warehouse Improvements • Advanced Lubricants • Idle-reduction At – Get Recognition And PR Facilities Value With SmartWay Brand – Get Recognition And PR Value With SmartWay Brand 9
  • 10. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY – SHARP’S ACTION PLAN• Carrier Notification • Implement ISO14001• Strict Pickup Times On LTL • Employee Training & Shipments Education• Implement A No Idling Policy • Sharp USA CSR Committee• SmartWay No Idling Sign • Rental Car – Hybrids Outside Logistics Centers • Use Recycled Paper in• Increase Intermodal Copier, Printers, & Fax Shipments • Use Corrugated Honeycomb• Mexico/Canada C-TPAT Pallets Certification • CFL Lights to Logistics Group• Implement Monthly PM • Test Drive a Hybrid Day Schedule On All Forklifts • $ 50 Idling Fine – To Charity• Reduce Light Emissions Using Motion Sensors 10
  • 11. ENVIRONMENTAL SUPPLY CHAINCOMPACT FLUORESCENT BULB 2,000 Bulbs will: Save 900,000 kWh Electricity Over Life of Bulbs Save 1.4 Million Lbs of CO2 Over Life of Bulbs Equal to Pollution of 120 Cars for 1 Year 11
  • 12. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY - PARTNERSHIPS: SHARP RESULTS• Savings – Using Intermodal & Enforced NO IDLE Policy – CO2 – 40,057 Tons – PM – 2.6 Tons – NOx – 66.8 Tons – Diesel Fuel – 3.8 Million Gallons 12
  • 13. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY - PARTNERSHIPS: TOTAL RESULTS• About 2,000 Partners Drive Approximately 650,000 Trucks (10% Of Industry) Travel Over 60 Billion Miles Per Year (30% Of Industry) Consume Over 12 Billion Gallons Of Fuel (32% Of Industry)• Goals 2010: Reduce Greenhouse Gas And Pollutant Emissions By: 6 Million Tons Of CO2 (Carbon Dioxide); 800 Tons Of PM (Particulate Matter); 30,000 Tons Of NOx (Oxides Of Nitrogen); Save Over 540 Million Gallons Of Diesel Fuel Save The Freight Industry $2 B In Fuel & Maintenance Costs 13
  • 14. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY - PARTNERSHIPS: SHARP RESULTS• Number of SmartWay Carriers – 2004-05 – 24 Out Of 85 Total Carriers (28%) – 2005-06 – 39 Out Of 85 Total Carriers (46%) – 2006-07 – 72 Out Of 80 Total Carriers (90%) – 2007-08 – 39 Out Of 47 Total Carriers (83%) – 2008-09 – 39 Out Of 40 Total Carriers (98%) – 2009-10 – 32 Out Of 32 Total Carriers (100%)• Tons Shipped With SmartWay Carriers – 2004-05 – 41,808 Out Of 127,841 Total Tons (33%) – 2005-06 – 81,499 Out Of 102,808 Total Tons (79%) – 2006-07 – 113,546 Out Of 115,468 Total Tons (98%) – 2007-08 – 104,415 Out Of 108,313 Total Tons (97%) – 2008-09 - 107,265 Out Of 107,269 Total Tons (100%) – 2009-10 – 73,836 Out Of 73,836 Total Tons (100%)• Sharp Also Had The First Mexican Boarder Carrier Join & Two Canadian Carriers 14
  • 15. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY PROGRAM SUPPLY CHAIN STRATEGIES• Many Companies, Countries, Trade Groups, NGOs And Other Stakeholders Looking For Ways To Reduce GHG Emissions From The Supply Chain.• World Economic Forum Estimates Potential Mt CO2e Savings From: – Clean Vehicle Strategies 175 – De-speeding Supply Chain 171 – Optimized Networks 124 – Packaging Improvements 132 – Low Carbon Sourcing 152 = 958 Mt CO2e – Modal Switches 115 Emissions reductions – Reverse Logistics 84 potential – Near-shoring 5 15
  • 16. ENVIRONMENTAL SUPPLY CHAIN CARBON BASED CARRIER SCORING SYSTEMS SmartWay Fleet Model 1.0 SmartWay Fleet Model 2.0SmartWay 1.0: - Simplistic Scoring - Non MeaningfulSmartWay 2.0: - Objective Scoring - Carbon Footprint Measurement 16
  • 17. ENVIRONMENTAL SUPPLY CHAIN COMPARISON SMARTWAY SHIPPER SCORING The current system provides a non- dimensioned environmental scoreThe new system willprovide multipleefficiency metrics andtotal inventories forCO2, NOx, and PM:•g/mile•g/avg payload ton-mile•g/avg cubic foot volume•g/truckload 17
  • 18. ENVIRONMENTAL SUPPLY CHAINSMARTWAY - CREATING PARTNERSHIPS: NEXT STEPS• Encourage Ocean Carriers To Commit To: – Low Sulfur Bunker Fuels, And Other Fuel Improvements – Engine Improvements Such As Slide Valves, Fuel Injection, EGR And Other New Technologies – Scrubbers, Catalysts, Bonnets And Other After-treatments – Innovations Such As Cold-ironing, Speed Reduction, Hull Coatings, Supplemental Wind And Solar Energy Sources – Long Term Solutions And More Sustainable Operations – PM, NOx, and CO2 Reductions Goals 18
  • 19. ENVIRONMENTAL SUPPLY CHAIN SMARTWAY - PARTNERSHIPS: GLOBAL NEXT STEPS• Europe – Climate TransAct – Project To Harmonize Existing Public Private Transport Programs And To Develop A Common European Approach Based On Best Practices, Is Creating A Coalition To Achieve Its Objectives – SmartWay Is Among The Models It Is Considering To Help Create Incentives For Carriers And Shipper To Improve The Energy And Environmental Performance Of Freight Transport Throughout The Continent – Participants In The New Coalition Include Public Authorities And The Industry Represented By Transport Companies, Shippers, European And National Associations• Website - Http://WWW.Climatetransact.EU/ 19
  • 20. ENVIRONMENTAL SUPPLY CHAIN RISKS OF NOT “GETTING INTO THE GAME”In Addition To The Environmental And Global Warming Risk,There Are Immediate Risks That Your Organization Will Need To Mitigate• Changing Political And Economic Forces Causing Government Mandates• Local Mandates (Higher Risk, More Immediate)• Competition (“Your Competition Is Getting Into The Game”)• Customer Response And Image to Consumers 20
  • 21. ENVIRONMENTAL SUPPLY CHAIN QUESTION 10 20 1000 30 40 21
  • 22. ENVIRONMENTAL SUPPLY CHAIN PARADIGM 1000 10 1000 20 1000 30 1000 40 4100 22
  • 23. ENVIRONMENTAL SUPPLY CHAIN CLOSING• Environmental Issues Are Not Just Left Up To Environmental Managers – Everyone Must Step Up• Its Not About Whether You Believe In Global Warming – CO2, NOx, PM Are In The Air And Bad To Breathe – We Must Reduce Emissions• The SmartWay Program: – Its Easy – Its Good For The Environment – It Makes You Feel Good – Competitive Advantage 23
  • 24. ENVIRONMENTAL SUPPLY CHAIN WE ARE IN THIS TOGETHERAND CAN ALL BENEFIT TOGETHERFor Information on SmartWay Contact: Buddy Polovick US Environmental Protection Agency Office of Transportation and Air Quality SmartWay Transport Partnership 2000 Traverwood Drive Ann Arbor, MI 48105 (734) 214-4928 phone Polovick.Buddy@epa.gov 24