Overviewing the nature of global supply chains and the sustainability agenda, with examples including Rare Earths

1. GBSA 563
Sustainable global supply chains

3. Peppercorns…….who uses
them?

4. Origin - India

5. Chilli Pepper…….who likes
Indian or Thai food?

6. Origin - Americas

7. The Spice Route

8. Opium Wars (1839 and again in 1856)

9. Supply Chains?
• Who Cares?

10. It’s where all the money is!
• Revenue:
- On average, manufacturing firms spend 70% of their
revenue with suppliers.
• Capital:
- Capital is typically invested by firms in their
facilities, equipment and manufacturing technology.
• Logistics
- costs range from 6% - 20% of the price to the final
customer
- transport costs account for 1/3 of logistics costs

11. 60 - 100
0 - 30
30 - 60
≥ 100
Data not available
Ratio of exports and imports of goods and commercial
services to GDP, 2008 (%)
Source: WTO

12. Source: WTO

13. Source: WTO

14. Source: WTO

15. • Levi Strauss factory
fined $10 million for MW
and OT violations
• Levi cuts factory ties
1992 1993 1994 1995 1996
•Guess contractors fined
$.5mn for wage violations
•Guess signs first DOL
monitoring agreement
• Guess faces labor
conflict at Salvadoran
factory; boycott campaign
led by US activist group
• Levi develops first
supplier Code of Conduct
•Thai slave laborers
found in garment factory
in El Monte, California
•Kathie Lee Gifford
clothing label found to
have child labor in
Honduras factory
•White House Apparel
Industry Partnership
formed with leading
companies.
•LIFE magazine
publishes story on child
labor in Nike’s Pakistan
soccer ball production
•Nike accused of unsafe
working conditions in
Vietnam shoe factory
1997
• United Students Against
Sweatshops is
established.
• SA8000 Standard is
created.
• Disney targeted in
media campaigns for
poor working conditions
in Haiti

16. 1998 1999 2000 2001
•Fair Labor Association is
established.
•Worker Rights
Consortium is
established.
• National Labor
Committee releases
report “Made in China:
Role of US Companies in
Denying Human and
Worker Rights”
• WRAP certification
program is established.
• Chinese workers in
Saipan win $20 million
landmark settlement from
26 US retailers.
• Electronic Industry code
of Conduct established
2002 2003 2004
• Fair Factory Clearing
house is established.
• CAFOD releases report
exposing dire working
conditions in computer
production in developing
countries.
• US NGO groups file suit
against US retailers and
Saipan garment factories
for violating US labor law
and international human
rights standards.
•ILO adopts 4 universal
core labor standards,
regardless of country
ratification.
• United Nations Global
Compact is launched,
with principles against
child labor and forced
labor.
• Chiquita signs landmark
agreement with
international unions to
respect worker rights.
• GAP invites SAI and
Verite to evaluate its
factory monitoring
program

17. • Last garment factory on
Saipan closes following
years of exposes and
changes in trade
preferences.
2005 2006 2007 2008 2009
• Slaves in Brazilian
Amazon forced to make
materials used in cars.
Ford, Toyota named.
• Nike publicly discloses
all their sourcing factories
•NLC report on abusive
working conditions in
China toy factories
•US-Jordan Free Trade
Agreement reviewed
amid allegations of forced
labor and human
trafficking in production of
US apparel.
•NLC report on Microsoft
using teenage workers
under false work study
schemes
• Bangladesh factory fire
leads NGOs to demand
retailer accountability and
improved conditions for
workers.
2010
•Russell Athletic
concludes agreement
with Honduran union to
re-open local factory after
losing contracts with 96
universities.
• Walmart sued in U.S. by
labor rights group for
failing to uphold code of
conduct regarding worker
treatment overseas.
• Unocal settles lawsuit
alleging complicity in use
of forced labor in Burma.
•Nike CR Report sets 5-
year target to improve
supplier labor conditions.
• United Nations appoints
Special Rep on Business
& Human Rights

19. 95% of the raw Materials used to produce and deliver
products are absorbed in the supply chain (Cradle to
Cradle)

21. It’s where capabilities are found
Channel Management
• Delivering excellent customer service
• Fulfillment
New Product development
• Innovation
• Product/service launch
Operational capabilities
• Productivity & efficiency improvements
• Quality improvement

22. Products
Product Provider Buying
Systems System Integrator Logistics Chain
Mission
Areas/
Capabilities
Integrated
Supply Chain
CUSTOMER CORPORATION SUPPLY CHAIN
User Service
Integrator
The World Is Changing
Focus On the Customer

23. EXAMPLE:
The Global Supply Chain for Lee Cooper Jeans
Synthetic Dye
Frankfurt, Germany
Calliope, France
Pesticide
La Societe National pour
la Promotion Agricole
Benin
COTTON
ItalDenim, Milan, Italy
Spin, Mill, Dye
Japan
Brass Wire
YKK, Japan
Zip
Australia & Namibia
Copper & Zinc
Prym, Germany
Rivets
Pakistan
Cotton
Korea
Cotton
Pakistan
Denim for pockets
Japan
Polyester Fibre
Coats Viyella
Lisnaskea, N Ireland
Thread
Spain
Dye thread
Lee Cooper, Ras Jebel, Tunisia
Factory
Lee Cooper, Amiens, France
Warehouse
Lee Cooper, London, UK
Warehouse
Cromwells, Ipswich, UK
Retailer
Source: The
Guardian 29.05.01

24. The Global Supply Chain for Lee Cooper Jeans
Cromwells
(retailer)
Ipswich, UK

25. The Global Supply Chain for Lee Cooper Jeans
Lee Cooper
(warehouse),
London, UK

26. The Global Supply Chain for Lee Cooper Jeans
Lee Cooper
(warehouse),
Amiens, France

27. The Global Supply Chain for Lee Cooper Jeans
Lee Cooper
(factory),
Ras Jebel, Tunisia

28. The Global Supply Chain for Lee Cooper Jeans
ItalDenim
(spin, mill, dye),
Milan, Italy
Dye
&Threads
Spain
Prym (rivets),
Germany

29. The Global Supply Chain for Lee Cooper Jeans
Calliope,
France
Pesticide
Japan
Polyester Fibre
Lee Cooper, London, UK
Warehouse
Cromwells, Ipswich, UK
Retailer
Pakistan
Denim for pockets
YKK, Japan
Zip

30. The Global Supply Chain for Lee Cooper Jeans
Pakistan,
Cotton
Japan
polyester
fibre
Synthetic Dye
Frankfurt
Germany
Japan
Brass Wire
Coats Viyella
Lisnaskea, N Ireland
Thread

31. The Global Supply Chain for Lee Cooper Jeans
Calliope, France
Pesticide
Australia &
Namibia
Copper & Zinc
Korea
Cotton
La Societe National
pour la Promotion
Agricole
Benin
COTTON

32. The Global Supply Chain for Lee Cooper Jeans
Lee Cooper's Global Supply Chain
Synthetic Dye
Frankfurt, Germany
Calliope, France
Pesticide
La Societe National pour
la Promotion Agricole
Benin
COTTON
ItalDenim, Milan, Italy
Spin, Mill, Dye
Japan
Brass Wire
YKK, Japan
Zip
Australia & Namibia
Copper & Zinc
Prym, Germany
Rivets
Pakistan
Cotton
Korea
Cotton
Pakistan
Denim for pockets
Japan
Polyester Fibre
Coats Viyella
Lisnaskea, N Ireland
Thread
Spain
Dye thread
Lee Cooper, Ras Jebel, Tunisia
Factory
Lee Cooper, Amiens, France
Warehouse
Lee Cooper, London, UK
Warehouse
Cromwells, Ipswich, UK
Retailer

34. The Global Car Production Network, 2003
Ford
Jaguar Land Rover
Volvo Aston Martin
Mazda Isuzu Suzuki
GM
Vauxhall Opel
Daewoo Saab
VAG
Bentley Skoda
Seat AudiVW
Dailmer Chrysler
Mercedes Benz
Chrysler Jeep
Fiat
Lancia Maserati
Ferrari Alfa Romeo
Toyota
Daihatsu
Porsche
Nissan Renault
Hyundai
PSA
Peugeot
Citroen
BMW
Rolls Royce
Mitsubishi
Honda
Equity ownership
Joint venture
Equity relationship
Functionally integrated group

35. The Automobile Supply Chain
Supplying
industries
Steel and
other metals
Rubber
Electronics
Plastic
Glass
Textiles
Bodies
Components
Engines and transmissions
Final
Assembly
Manufacture and
stamping of
body panels
Body assembling
and painting
Manufacture of mechanical and electrical
components (wheels, tires, seats, breaking
systems, windshields, exhausts, etc.)
Forging and casting of
engine and transmission
components
Machining and
assembly of engines
and transmissions
Consumer
market

36. Cereals Supply Chain
Farm
Wood Pulp
Mfg
Processing
Facility
Packaging
Label Mfg
Converter Distributor Store
Packaged Cereal
Packaged Cereal
Grain
Wood Pulp
Paperboard
LabelsWood Pulp
Cereal
Distribution and Retailing
ManufacturingExtraction

37. Main contractors – F22 Raptor

38. Sustainable Supply Chains?

39. Sustainability…..
Anthropology
Man through history
Ecology
Living organisms and their surroundings
Environmental Science
39
Concerns Anthropogenic (Mans) Impacts on Nature
How Nature and Humans Operate and Interact

40. 40
How Do We Interact With Nature?
• Production of
Goods & Services
• Resource use &
exploitation
• Landscapes
• Aesthetics
• Food
• Shelter
• Clothing
• Leisure
• Pollution

41. 41
Changes in Anthropogenic Impact
• Hunter Gatherers
• Subsistence Farming
• Agricultural
Communities
• Industrial Revolution
• Information
Revolution
• Nomadic
• Organic Methods
• “Tragedy of the
Commons” (Hardin)
• Where there’s smoke,
there’s work
• Self determination &
Individualism

42. 42
Limiting Factors in using Nature
Carrying Capacity
• The maximum amount
that can be assimilated
by the environment
without causing
dysfunction in resource
processes
Assimilative Capacity
• The amount the
environment can
tolerate without harm
Threshold Level
• The point at which the
environment stops
functioning as a
resource
• The point at which
dilution is no longer the
solution

43. 43
Exponential Growth
Population Growth
• 1930 = 2 billion
• 1960 = 3 billion
• 1977 = 4 billion
• 1989 = 5 billion
• 1999 = 6 billion
• 2011 = 7 billion
Doubling Time*
• 30 years
• 17 years
• 12 years
• 10 years
• 12 years
• *Officially doubling time is the
time it takes any population to
double in size (i.e. twice as
large)

44. 44
Sustainability
Sustainable Society
• manages its economy and population size without
exceeding the environments ability to absorb
pollutants, replenish resources, and sustain human
and ecological life forms.
Sustainable Development
• meeting present needs without preventing future
generations from meeting their potential needs

45. 45
Theories on Sustainability
Neo-Malthusian
• Population will exceed Earth’s carrying capacity
- Food production is a linear curve
- Population is an exponential curve
- When the lines cross, something has to give…a
crash occurs
(Essay on the Principle of Population)

46. 46
Theories on Sustainability
Hardin’s “Tragedy of the Commons”
• No economic disincentive to not use up resource
• Overuse and pollution of resources leads to
environmental collapse
• Users are free riders
Essentially – individuals will not observe the common
good in terms of resource usage – but will follow self
interest

47. Sustainability/Self sufficiency
• Can we, as individuals, be self sufficient?
- Think of your own resource consumption
• Can organizations be self sufficient?
- 70% of average income spent with suppliers
• Can communities be self sufficient?
- Aboriginal Australians, American Indians, Aztecs, Egypt,
Roman Empire, Chinese Dynasties
• Is there conflict between individual, group, local, regional,
national and global sufficiency?
- Resource consumption per capita – US vs. developing world

48. So, where is the incentive?
• According to Werner Marx – the only incentive to be
sustainable is through compassion. (This is a
‘postmodernist’ view; one that reflects a philosophical view
of an acceptable, new and fragmentary view of the world)

49. Week Three
• Where are the pressure points in your supply chain?

51. The debate
• Falsification/exaggeration - problems with IPCC’s claims
over Himalayan glaciers and the Netherlands’ exposure to
sea incursion
• Bjorn Lomborg – ‘contrarian’ whose latest book (“Smart
Solutions to Climate Change: Comparing Costs and
Benefits”) calls for investment in carbon neutral energy.

52. United Nations Global Compact
Human rights
Businesses should support and respect the protection of
- internationally proclaimed human rights; and
- make sure that they are not complicit in human rights abuses.
Labour
Businesses should uphold the freedom of association and the
- effective recognition of the right to collective bargaining;
- the elimination of all forms of forced and compulsory labour;
- the effective abolition of child labour; and
- the elimination of discrimination in respect of employment and occupation.
Environment
Businesses are asked to support a precautionary approach to
- environmental challenges;
- undertake initiatives to promote greater environmental
- responsibility; and encourage the development and diffusion of environmentally friendly
technologies.
Anti-corrupt ion
Businesses should work against corruption in all its forms,
- including extortion and bribery.

53. California Supply Chain Transparency Act
& Slave and Sweat Free Code of Conduct for goods sold
to the State of California (SB 1231)
• In India “children as young as 10, came from a poor
farming district on the other side of the country, and said
they had never been given promised wages for working
up to 15 hours a day.”
• In China children as young as 8 are working 15 hour days,
7 days a week for 26 cents.
• In the United States children are working 10 to 12 hours a
day.
–There are about 80 sweatshops in Los Angeles. In
the U.S. one of the many sweatshops makes jeans for
Guess

54. Restriction of Hazardous Substances
(ROHS)
• Lead (Pb)
• Mercury (Hg)
• Cadmium (Cd)
• Hexavalent chromium (Cr6+)
• Polybrominated biphenyls (PBB)
• Polybrominated diphenyl ether (PBDE)

55. Environmental Protection Agency
• Taking action on climate change
• Improving air quality
• Assuring the safety of chemicals
• Cleaning up our communities
• Protecting America's waters
• Expanding the conversation on environmentalism and
working for environmental justice
• Building strong state and tribal partnerships

56. Greenpeace
• Not for Profit (501(c) in USA) Founded in 1970
originally to protest nuclear weapons testing, now
includes environmental activism.
• Has been subject to attacks by French government
(Rainbow Warrior sinking in 1985).
• Extensive research on Oil, Autos, Forests, Coal,
Oceans,
• Eg Campaign to make Costco source sustainable fish

57. Amnesty International
• NGO focused on human rights violations
• Strong proponents of the UN Norms on the Responsibilities
of Transnational Corporations and Other Business Enterprises
with Regard to Human Rights
• Considerable focus on human dignity and micro-loans,
BoP .

58. A moral imperative?

59. A legal requirement?

60. A political expediency?

61. Sound business sense?

62. Sustainable Supply Chain…a process
view
Environmentally Friendly Environmentally Friendly Environmentally Friendly
OutputTransformationInput
Reuse process Disposal Process
Recycled
Reclaimed product
Recyclable Material
Reclaim/Reuse/Improve
By-products
End of life
Raw materials
© Patrick C Penfield 2007

63. • looking at … supply chain(s) as the next frontier for combating
climate change. “Carbon footprint is absolutely new territory." says a
Herman Miller VP. "“We’re not sure how we’ll measure it, we’re not
sure how we’ll deal with it, but we’ve told our suppliers, ‘Get ready,
because we’re going to ask you a lot of questions.’” New York Times
Nov 7, 2007

65. • 95% of the raw Materials used to produce and deliver
products are absorbed in the supply chain (Cradle to
Cradle)

66. Carbon emissions in the supply chain (UK)

67. Political changes can impact on every
supply chain..

77. Use of composite materials

78. • The Earth has an estimated 61 years of copper reserves remaining.
Environmental analyst, however, has suggested copper might run out within
25 years based on a reasonable extrapolation of 2% growth per year.
• Copper has been in use at least 10,000 years, but more than 95 percent of
all copper ever mined and smelted has been extracted since 1900. And as
India and China race to catch up with the West, copper supplies are getting
tight. Copper is among the most important industrial metals. Like fossil fuels,
copper is a finite resource.
Copper

79. • The earth has been estimated to have 46 years supply of zinc. A chemist estimated
in 2007 that at the current rate of usage, the world's supply of zinc would be
exhausted by about the year 2037
Zinc

80. Aluminium
In the Earth's crust, aluminium is the most abundant
(8.13%) metallic element, and the third most abundant
of all elements (after oxygen and silicon). Almost all
metallic aluminium is produced from the ore bauxite. Bauxite
occurs as a weathering product of low iron and silica bedrock in
tropical climatic conditions

81. Titanium
• Significant titanium-bearing ilmenite deposits exist in western Australia,
Canada, China, New Zealand, Norway and Ukraine. Large quantities of rutile
are also mined in North America and South Africa and help contribute to the
annual production of 90,000 ton of the metal and 4.3 million ton of titanium
dioxide. Total known reserves of titanium are estimated to exceed 600 million
ton
Producer Thousands of tons % of total
Australia 1291.0 30.6
South Africa 850.0 20.1
Canada 767.0 18.2
Norway 382.9 9.1
Ukraine 357.0 8.5
Other countries 573.1 13.6
Total world 4221.0 100.1

82. Material in an average automobile

83. Rare Earths

84. Overview
The term “Rare Earths” refers to the 15 Lanthanide
elements and Yttrium
• Rare Earths aren’t really “rare”
• More plentiful than silver
• Rare Earths are extracted from Bastnaesite, Monazite,
Apatite, Xenotime and Ionic Clays

85. Four Major Factors
•China
 Became a major player in a short time
 Went from 16,500t REO in 1990 to over 100,000t REO in
2003
•Breakup of the USSR
 Large stockpiles of Rare Earths became available on the
world market for the first time
 Predominantly Rare Earth metals, suited for military
purposes
•Radiation Problems
 Problems with disposal of Thorium byproducts
 Australia and India decreased in importance
•Shutting down of Molycorp
 Molycorp was shut down due to environmental problems

86. Cyclical Chinese Market
•2000
 Several Chinese producers have gone bankrupt (Down to 80
from 150)
 Chinese Government steps in, creates export quotas
 Minimum prices are set
•2000-01
 Uptrend in prices due to increased demand in the
telecom/computer industry
 Several closed units are re-opened
•2001-03
 Telecom/Computer Industries collapse
 Prices drop drastically
•2003-2007
 Chinese Government attempts to organize the Industry into
two groups
 Prices about 30-50% below 2000 levels

87. Chinese Market - Today
• Increased domestic consumption
• Chinese enterprises moving up the value chain
 Battery Powder
 Magnetic Powder
 Chinese Govt. very keen on catalyst plant
• Crack down on environmental problems
• Reduction in illegal mining
• Increased production of Bastnaesite in Sichuan
• Ionic Clays production continues to increase

88. Cartel Formation
“Rare Earths is to China what Oil is to OPEC”
Deng Xiaoping
• A first attempt was made in 1994 – It failed
• The Chinese Govt. wanted to create a cartel
because of these reasons
• Severe oversupply
• Price undercutting
• Margin erosion (2004 prices were lower than the prices
in 2000)

89. Steps Taken
• ‘Cap’ on annual Rare Earths export through
restricted export quotas/licenses
• A willingness to let uneconomic enterprises go
bankrupt
• Suspension of new mining licenses until Dec.
2005
• Creation of two blocs
North, controlled by Baotou Steel and Rare Earth
South, controlled by Aluminum Corp of China & China
National Metals & Minerals (Minmetal)

90. The Plan
•Supply all mined Rare Earth ores only to members of
these blocs
•Export quotas would only be provided to members of the
groups
•Government to actively shut down plants operating
without a mining license
•Coordinated, centrally orchestrated pricing

91. The Result
•The Govt. could not control the entrepreneurial spirit of
the owners
•Fundamental differences in:
• Goals
• Scales
• Production Technologies
•Difficulty in setting up co-financing agreements
•The plan has been completely abandoned

92. Demand - Catalysts
Appl. Specific Application Units RE Used 2003 2004 2005 2006 2007 2008
tpy Ce 4,704 5,137 5,583 5,937 6,237 6,457
tpy La 250 273 297 316 331 343
tpy Nb 250 273 297 316 331 343
Catalysts for Diesel
Vehicles
tpy Ce 0 0 0 10 55 57
Fuel Additives tpy
FCC Catalysts tpy La 11,000 11,330 12,825 13,210 13,606 14,015
Catalysts
Autocatalysts
No Information

93. Auto Catalysts – Car Production
2003 Car Production 56,849,000
2003 Cars with Catalysts 48,000,000
2003 % with Catalysts 84%
Average cells in a catalyst 2.8
Cerium per cell 35 gms
Cerium Consumed (2003) 4704 tons

94. Auto Catalysts – Growth Components
To Monitor Is new environmental legislation introduced in the US, Europe and Japan ? Yes
Growth Rate Components 2004 2005 2006 2007 2008
- Auto Production 2% 2% 2% 2% 2%
- Increased use of catalysts 2% 3% 2% 2% 2%
- Stricter Legislation 5% 5% 4% 3% 2%
Impacts Catalyst Usage
Impacts Cerium
consumption/Cell
Impact

95. Auto Catalysts - Substitution
To Monitor Do lean burn engines meet the emission standards ?
To Monitor Has fuel borne cerium catalyst tehnology been perfected ?
Substitution Components 2004 2005 2006 2007 2008
- Lean Burn Engines -1% -1% -1% -1%
- Fuel Borne Cerium Catalyst 2% 2% 2% 2%
- Hybrid Cars -0.50% -0.75% -1% -1.50%
- Recycling - - - - Negligible Impact
Impact Cerium
consumption/Cell
Impacts Catalyst Usage

99. Using the world’s water?
• How do you use water?
• Washing
• Laundry
• Drinking
• Heating
• Swimming
• Irrigation……

101. External water footprint
i.e. the Quantity of “virtual*” water deriving from
other countries in imported goods
• The UK imports most of its requirement for tomatoes in
winter from Morocco: where 1 tomato requires 13 liters
of water . By 2020, at current rates, groundwater in Morocco
will be effectively exhausted
• A shirt made from cotton grown in Pakistan or
Uzbekistan requires 2,700 liters of water: Much of which
comes from depleted sources such as the Indus river (that often
runs dry before it reaches the sea), or from Aral Sea that has lost
80% of its volume in the last 40 years because of excess
irrigation.
Source: WWF
”Virtual water is water used during the production process”

103. Invitrogen

106. Main sources of Co2 across the supply
chain

107. Opportunities to reduce Co2 in
newspapers

108. Why is there a problem with food prices
now?
• Soaring oil and energy prices have pushed up costs:
–fertiliser is up more than 70%,
–fuel for tractors and farm machinery is up 30%,
–pesticides, which depend on oil, are up too,
–as are labour costs;

109. Why is there a problem with food prices
now?
• Demand is rising as the global population grows
and increasing affluence impacts on demand for
meat, eggs and dairy products. (Over 30% of the
world's grain now goes to feeding animals rather
than people directly. Farming one acre of decent land
can produce 138lbs of protein from grain, but one
acre given over to beef farming will produce only
20lbs of protein;)

110. Why is there a problem with food prices
now?
• Droughts in grain-producing areas of the world have
hit harvests in the last few years. Grain stocks are at a
historic low;

111. Why is there a problem with food prices
now?
• Biofuels are competing with food for arable land,
with both the US and the EU mandating their use.
About 30% of the US corn crop is expected to be
diverted to biofuels this year;

112. Why is there a problem with food prices
now?
• Speculative trading in agricultural commodities has
grown dramatically.
• Several big investment banks have launched agricultural
commodity index funds, as they look for new areas to
make profits in following the credit crunch.
• The result ? Enormous fluctuations in market prices that
do not appear to relate to changes in fundamentals such
as supply and demand.
• Four years ago $10-15bn was invested in agricultural
commodities funds - now that figure is more than
$150bn. (Wall Street investment funds own 40% of US wheat futures and more
than one fifth of US corn futures.)

113. WORLD CLASS SUPPLY
CHAIN MANAGEMENT

114. Evolution of Supply Chain Management
Source: ““How Do I Drive Value Through a Value
Network?” AMR Research, December 2007
Cross-functional coordination
Demand Networks, Design
Networks and Supply
Networks
Supply Networks
Shift to external focus on the
design and management of
relationships
Set of processes and
technologies based on a near
real-time demand signal
Multiple networks of
employees, suppliers, and
customers
Value Networks
Efficient Supply
Procure-to-pay and order-to-
cash transactions
Direct material management
while reducing costs
Late 1980s Today2000 to 2005

115. Evolution of Supply Chain Management
Cross-functional coordination
Demand Networks, Design Networks
and Supply Networks
Supply Networks
Shift to external focus on the
design and management of
relationships
Set of processes and technologies
based on a near real-time
demand signal
Multiple networks of employees,
suppliers, and customers
Value Networks
Efficient Supply
Procure-to-pay and order-to-cash
transactions
Direct material management
while reducing costs
Late 1980s Today2000 to 2005
Shift to external resource
management
Accountable for total network
carbon footprint
Engagement in risk and reward
sharing
Innovation as the engine of
sustainability
Lean Networks
Tomorrow