The Green Supply Chain 2010
                     Supply Link VS Supply Chain




     Bryan Larkin                        ...
Agenda

    Why Green Matters                      "Being a good steward of
                                           the...
Why Focus on Sustainability?




                                      3
WELCOME to the FORUM
Corporate Social Responsibility

   Environment                   Equal Opportunity
   & Resources                   & Div...
Media is Raising Awareness




                                         5
WELCOME to the FORUM
The Past 4 Years
        2006-2007              2008-2009




                                           6
WELCOME to the ...
Important to Consumers
  What actions will you take to be green today and in the future?

    1   Turn off home electronic...
Important to Shareholders




                                         8
WELCOME to the FORUM
Important to Retailers
   True        Greener Options – Environmentally friendly merchandise
               selection – CF...
Important to Regulators




                                        10
WELCOME to the FORUM
Congrats to Schneider Electric
                               • AMD Corporation                    • Ivalua Inc.
         ...
A Change in Perspective
   “A recent study found the
    average American golfer
    walks about 900 miles a
   year. Anot...
Green Sourcing
                                        13
WELCOME to the FORUM
Green Sourcing
                      Smarter for Your Business and the Environment




           Sourcing &              ...
China – Going Green?
      Green Production & Manufacturing Initiatives in China

49%                                     ...
Surveying Supplier Compliance




                                          16
WELCOME to the FORUM
Five Things
   Manufacturing
   You Can Do




                       17
WELCOME to the FORUM
Is Lean Necessarily Green?

     The contemporary emphasis on cycle time
     compression, for example, may result in a mu...
Do You Track a Chain or a Link?

                We talk about supply chains….


                                      But...
If you don’t know
                         what your
                         customers’              Or will
            ...
Green
                       Packaging




                                   21
WELCOME to the FORUM
Packaging Opportunities




                                        22
WELCOME to the FORUM
Example - Bottled Water

      200 Billion Bottles of
        Water Consumed
            Globally
      Only 23.4% Recycle...
Packaging Dimensions




       Enables exchange of packaging dimensions for consumer unit
    (each); grouped packaging (...
Global Data Synchronization
    Marketing    Promotions                                                            Marketi...
Green
                       Transportation




                                        26
WELCOME to the FORUM
Shipping by Train is Greener

                       If you are using trucks, can you
                       move your pro...
Rail VS Truck: CO2 Emissions




                       Results from the CSX Clean Air Challenge – Carbon Calculator
     ...
Shipping by Ship is Greener
                            Have you considered coastal (Short
                            Sea...
Europe Leading the Way
  Europe has many Short Sea Shipping routes.




                      www.greenships.org

        ...
Green IT -
  Sustainability
  Reporting




                       31
WELCOME to the FORUM
Sustainability Reporting



                            Strategy & Analysis
                            Report Parameters
...
Carbon Management Systems




                                       33
WELCOME to the FORUM
Carbon Trading Markets




                                       34
WELCOME to the FORUM
Green Benefits of Automation
                                     Strengthening Your Competitive Advantage

  Automating t...
36
WELCOME to the FORUM
Five Things You Can Do

  1. Investigate Green IT options for you business
  2. Carbon Management Systems (shareholder, go...
EDI & B2B e-Commerce
                       By removing the paper from supply
                       chain transactions, w...
Sustainability Assessment

                       o Bring your total number of business
                         documents...
Earth Day

                               Earth Day
                                   April 22nd




                    ...
Contact Details
    Bryan Scott Larkin
     –   Chief Supply Chain Strategist, Digital Management, Inc.
     –   blarkin@d...
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Green Supply Chain 2010

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Green Supply Chain 2010 presentation delivered at the American Hardware Manufacturers Association (AHMA) conference in Chicago,IL.

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Green Supply Chain 2010

  1. 1. The Green Supply Chain 2010 Supply Link VS Supply Chain Bryan Larkin Steve Keifer Chief Supply Chain Strategist VP Industry Marketing Digital Management GXS WELCOME to the FORUM
  2. 2. Agenda Why Green Matters "Being a good steward of the environment and in our Areas of Business Focus communities, and being an – Sourcing efficient and profitable business, are not mutually – Manufacturing exclusive. In fact they are – Packaging one in the same." – Logistics -- Lee Scott, Former CEO Wal- – Information Technology Mart, Twenty First Century Leadership, October 24, 2005 Five Things You Can Do 2 WELCOME to the FORUM
  3. 3. Why Focus on Sustainability? 3 WELCOME to the FORUM
  4. 4. Corporate Social Responsibility Environment Equal Opportunity & Resources & Diversity Community Product Quality Support & Safety Human Health & Rights Wellness 4 WELCOME to the FORUM
  5. 5. Media is Raising Awareness 5 WELCOME to the FORUM
  6. 6. The Past 4 Years 2006-2007 2008-2009 6 WELCOME to the FORUM
  7. 7. Important to Consumers What actions will you take to be green today and in the future? 1 Turn off home electronics not in use 2 Recycle or reuse products 3 Use low-energy light bulbs 4 Use less water 5 Bring my own bags to grocery store 6 Use energy-efficient appliances 7 Use my car as little as possible 8 Purchase locally produced products 9 Improve insulation in my home 10 Buy products without packaging 7 WELCOME to the FORUM Source: Boston Consulting Group – Capturing the Green Advantage for Consumer Companies
  8. 8. Important to Shareholders 8 WELCOME to the FORUM
  9. 9. Important to Retailers True Greener Options – Environmentally friendly merchandise selection – CFL light bulbs; low flow showerheads; natural fertilizer Value LEADS (Lowes Energy Awareness Delivers Savings) – Lowes Efficient Store Operations reducing water & energy usage at 1650+ stores. ACE Helpful Earth Choices – Help to identify environmentally- friendly products – organic pest control; rain barrels Hardware Sustainability 360 – Supplier Sustainability Assessment. Walmart Supplied by 100% renewable energy. To create zero waste. The Home Sustainable Forestry – Preference to wood from forests managed in a responsible way. Eliminate purchasing from Depot endangered regions of the world. 9 WELCOME to the FORUM
  10. 10. Important to Regulators 10 WELCOME to the FORUM
  11. 11. Congrats to Schneider Electric • AMD Corporation • Ivalua Inc. • ATC Logistics & • JIT Reshippables, Electronics Inc. • CaseStack, Inc. • ModusLink Global • Cass Information Solutions Systems, Inc. • Optiant • Conexant Systems, • Ryder Inc. • Schneider Electric • Container and Pooling • SciQuest, Inc. Solutions (CAPS) • SigmaQuest • Con-way Inc. • SmartTurn • D.W. Morgan Company • Strive Logistics, LLC • DSC Logistics • SYSPRO • Flash Global Logistics • The Evans Network • Global4PL of Companies • Hewlett-Packard • Total Logistic Control Company • Transplace • HIS • Transzap, Inc. • INSIGHT, Inc. • UPS • Integration Point • Williams-Sonoma • Interface, Inc Source: Supply and Demand Chain Executive http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and- 11 WELCOME to the FORUM Demand-Chain-Executive-Announces-Its-2009-Green-Supply-Chain- Awards/60$11835
  12. 12. A Change in Perspective “A recent study found the average American golfer walks about 900 miles a year. Another study found American golfers drink, on average, 22 gallons of alcohol a year. That means, on average, American golfers get about 41 miles to the gallon. Kind of makes you proud…” 12 WELCOME to the FORUM Source: Internet
  13. 13. Green Sourcing 13 WELCOME to the FORUM
  14. 14. Green Sourcing Smarter for Your Business and the Environment Sourcing & Packaging & Usage & Manufacturing Transportation Disposal – Materials Composition – – Accurate Weights – – Recyclable – Whole Lead, Mercury, Pallet Level Product or Cadmium Components – Packaging or Product – Manufacturing Process made from Recycled – Recycling Instructions uses Renewable Energy Content Well Understood and Sources process is Practical – Packaging – Paints, coatings, plastics Configurations & – Energy Usage – On, containing SCCPs Dimensions – SKU, Off and Standby Mode Case, Pallet – Useful Life Expectancy – Upgradable, Easily Repaired WELCOME to the FORUM
  15. 15. China – Going Green? Green Production & Manufacturing Initiatives in China 49% Recycling Programs for Raw Materials 38% Recycling Programs for Reusable Parts 32% Measure and Ensure Green SCM Compliance 30% Improved Labor Management 27% Measuring Company’s Carbon Footprint 27% Reducing CO2 in Manufacturing Processes 26% Include Recycling in New Product Design 19% Increasing Product Robustness in Design 8% Applying Carbon Off-Setting 7% Other 15 WELCOME to the FORUM Source: Global Supply Chain Council – Survey of 145 Chinese Businesses (February 2010)
  16. 16. Surveying Supplier Compliance 16 WELCOME to the FORUM
  17. 17. Five Things Manufacturing You Can Do 17 WELCOME to the FORUM
  18. 18. Is Lean Necessarily Green? The contemporary emphasis on cycle time compression, for example, may result in a multitude of smaller shipments moving by fast, fuel-inefficient forms of transportation. Environmentally responsible logistics programs, by contrast, are more comfortable with fewer, larger shipments moving by slow, fuel-efficient forms of transportation. Green Logistics Strategies: An Analysis of Usage Patterns. By POIST, RICHARD F. Publication: Transportation Journal Date: Friday, December 22 2000 (referencing Haw-Jan Wu and Steven Dunn) 18 WELCOME to the FORUM
  19. 19. Do You Track a Chain or a Link? We talk about supply chains…. But how many of us only know about our supply links – our immediate suppliers and customers? The future belongs to multi-tier visibility: • What do our customers’ customers want? • What are our suppliers’ suppliers doing? 19 WELCOME to the FORUM
  20. 20. If you don’t know what your customers’ Or will customers or understanding suppliers’ them be a suppliers are sense of doing, will they strength for be like an anchor you? for your business? If there is a problem with a consumer-oriented product, the CPSC can ask for the history of any product shipped to or within the US. The can ask for information on who produced which components and when – and what compounds or ingredients were used in production. Are you ready to provide this information this if you have a problem? 20 WELCOME to the FORUM
  21. 21. Green Packaging 21 WELCOME to the FORUM
  22. 22. Packaging Opportunities 22 WELCOME to the FORUM
  23. 23. Example - Bottled Water 200 Billion Bottles of Water Consumed Globally Only 23.4% Recycled Packaging Initiatives • Change shape - less surface area • Less weight for plastic materials • Reduce shrink wrapping on cases • Eliminate corrugated cardboard • Reduce size and weight of labels • 100% recyclable PET materials WELCOME to the FORUM Source: Wikipedia; Corporate Sustainability Reports – Nestle, Coca Cola, Danone
  24. 24. Packaging Dimensions Enables exchange of packaging dimensions for consumer unit (each); grouped packaging (case) and transport packaging (pallet) WELCOME to the FORUM Image Source: GS1 – GDSN Package Measurement Rules
  25. 25. Global Data Synchronization Marketing Promotions Marketing Promotions Packaging Trade Data Data Packaging Trade Price Regulatory Pool Pool Price Regulatory Source Global Data Recipient Data Synchronization Data Pool Network Pool Suppliers Publish Retailers Subscribe Product Catalog to Updated Product Data to a Local Data Data Data from a “Data Pool” Pool Pool Local “Data Pool” Global Data Product Synchronization Network Product Information Information Manager enables exchange of Manager product data with trading 25 WELCOME to the FORUM partners worldwide
  26. 26. Green Transportation 26 WELCOME to the FORUM
  27. 27. Shipping by Train is Greener If you are using trucks, can you move your produce by rail instead? 27 WELCOME to the FORUM
  28. 28. Rail VS Truck: CO2 Emissions Results from the CSX Clean Air Challenge – Carbon Calculator http://www.csx.com/?fuseaction=customers.emissions_carboncalculator 28 WELCOME to the FORUM
  29. 29. Shipping by Ship is Greener Have you considered coastal (Short Sea) shipping instead of trucks? Source: Texas Transportation Institute and University of Texas www.greenships.org 29 WELCOME to the FORUM
  30. 30. Europe Leading the Way Europe has many Short Sea Shipping routes. www.greenships.org www.shortsea.nl Benefits to Short Sea Shipping: • Reduced Road Congestion • Less vulnerable to high oil prices • Increased road safety • Reduced fuel consumption • Reduced noise pollution • Less reliance on imported fuel • Reduced road and maintenance costs • Smaller carbon footprint 30 WELCOME to the FORUM
  31. 31. Green IT - Sustainability Reporting 31 WELCOME to the FORUM
  32. 32. Sustainability Reporting Strategy & Analysis Report Parameters Governance & Commitments Environmental Impact • Materials • Energy • Water • Biodiversity • Emissions, Effluents, Waste • Products and Services • Compliance • Transport 32 WELCOME to the FORUM Source: Global Reporting Initiative – www.globalreporting.org
  33. 33. Carbon Management Systems 33 WELCOME to the FORUM
  34. 34. Carbon Trading Markets 34 WELCOME to the FORUM
  35. 35. Green Benefits of Automation Strengthening Your Competitive Advantage Automating the exchange of documents and processes results in significant positive business impact through reduced errors, manufacturing improvements, logistics improvements and financial improvements. An added benefit is the sustainability aspect – automation helps companies meet their corporate environmental goals. Digitized Documents Digitized Processes Improved Electronic Electronic Advance Order Business impact Electronic Point of Sale Electronic Order Acknow Electronic Ship Carrier Lifecycle Logistics eInvoicing Inventory Forecasting Data Sharing Orders Changes ledgement Invoices Notices Status Visibility Visibility with Match Visibility Reduce Safety Stock Reduce Expediting Reduce Paper Usage Reduce Overages in Shipment Optimize Transportation Reduce Overall Errors Reduce Manual Efforts Improve order-to- settlement Direct Green Impact Tangential Green Impact WELCOME to the FORUM
  36. 36. 36 WELCOME to the FORUM
  37. 37. Five Things You Can Do 1. Investigate Green IT options for you business 2. Carbon Management Systems (shareholder, government, supplier/retailer requirements) 3. Supply Chain Integration 4. Investigate tools to support flexibility in operational models (JIT/Lean vs Sustainable; Truck vs Train vs coastal shipping) 5. Sign up for a supply chain sustainability assessment 37 WELCOME to the FORUM
  38. 38. EDI & B2B e-Commerce By removing the paper from supply chain transactions, we could eliminate… 2.3 billion pounds of CO2, the equivalent of taking 206,672 cars off the road for a year or reducing gasoline consumption by 434 million gallons or 8.9 million barrels of oil 1,386,667 tons of wood, the equivalent of 9.6 million trees 15.3 million BTUs of total energy consumption, the equivalent of about 168,633 homes/year 7.6 billion gallons of wastewater, the equivalent of about 11,553 swimming pools 911 million pounds of solid waste, the equivalent of about 32,548 garbage trucks. 38 WELCOME to the FORUM Source: Environmental Defense Fund Paper Calculator
  39. 39. Sustainability Assessment o Bring your total number of business documents shared per year • Paper based • Electronic o We’ll provide a quick Supply Chain Sustainability Assessment, including a certificate you can share with your corporate sustainability leaders, and we’ll let you know things you can do to help improve your business’ carbon footprint! 39 WELCOME to the FORUM
  40. 40. Earth Day Earth Day April 22nd 40 WELCOME to the FORUM
  41. 41. Contact Details Bryan Scott Larkin – Chief Supply Chain Strategist, Digital Management, Inc. – blarkin@digitalmanagement.com – http://www.digitalmanagement.com – Twitter: @bslarkin Steve Keifer – VP of Product and Industry Marketing, GXS – Steve.Keifer@gxs.com – http://www.gxs.com – Twitter: @smkeifer 41 WELCOME to the FORUM
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