Slides/mindmaps taking a DELIVER perspective on sustainability

1. ECSCIA, European Centre of Supply Chain Information Architecture
Sustainability framework,
the DELIVER perspective

2. This document focuses on the bricks in the framework that are
central to the DELIVER perspective, i.e. logistics.
DELIVER is where the impact of physical movement between
nodes in the supply chain has the most visible impact on the CO2e
aspect of sustainability. It´s those bricks in the framework that
form the playing field where energy is used for transport and
storage.
ECSCIA, European Centre of Supply Chain Information Architecture

3. Recap section
ECSCIA, European Centre of Supply Chain Information Architecture

4. The sustainability framework illustrates and structures what supply
chain related knowledge that need to be available as formal data
order to digitally manage sustainability.
Each brick in the framework covers one aspect of the data foundation
needed to ensure “sustainability”.
Building a strong sustainability chain requires having data in every
brick under control
ECSCIA, European Centre of Supply Chain Information Architecture

5. Compounds
CO2e
Compliance
ECSCIA, European Centre of Supply Chain Information Architecture
The “3C”s “Sustainability”

6. Compounds
CO2e
Compliance
Sustainability framework, the bricks
Transactions, the execution
Lifecycles, the phases
Value chains, the interaction
ECSCIA, European Centre of Supply Chain Information Architecture
“3C”s +
fundamentals
“Sustainability”
Plans and predictions, the choices

7. Compounds
CO2e
Compliance
Network
efficiency
ECSCIA, European Centre of Supply Chain Information Architecture
“3C”s and an “N” “Sustainability”

8. CO2e
Emission
factors
Workload Value chain
ECSCIA, European Centre of Supply Chain Information Architecture

9. Compliance
Regulations
Laws
Industry
standards
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10. Compounds
Items
BOMs
Substances
ECSCIA, European Centre of Supply Chain Information Architecture

11. Network
efficiency
Locations
Routes
Modes of
transport
Operations
Trade & legal
compliance
Plans
Transactions
ECSCIA, European Centre of Supply Chain Information Architecture

12. Portfolio and
Innovation
lifecycle
Design
lifecycle
Supply chain
lifecycle
Operational
lifecycle
Total sustainability lifecycle
Sales
lifecycle
End of life
lifecycle
Extended
ecosystem
Lifecycle(s)
Sustainability lifecycles
ECSCIA, European Centre of Supply Chain Information Architecture

13. Routes ,
Lanes
Modes of
transport
Product
structures,
”Bill of material”
Locations
Value chains
Compound &
substance
structures
Operations
Dimensions
Conditions
Lead times
The sustainability framework; “bricks” (revision 7…)
Partners,
stakeholders
Contracts &
agreements
Items,
catalogues and
launch plans
ECSCIA, European Centre of Supply Chain Information Architecture
Resources
Drawings and
specifications
Standard
Operating
Procedures

14. Entities
(legal and
financial)
The sustainability framework; “bricks” (revision 7…)
ECSCIA, European Centre of Supply Chain Information Architecture
Segmentation
hierarchies
Product portfolio
hierarchies
NPI plans Calendars
Trade & legal
compliance rules
Product and
standards
compliance
Sustainability
weight/cost
measures
Emission factors

15. Transactions (revision 1…)
Quotes
Customer orders
Sales orders
Purchase orders
Manufacturing
orders
Delivery
orders
Movement
orders
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RFIs,RFPs and
RFQs
Splits and quotas

16. Plans and predictions (revision 1…)
Forecast Plan Budget
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17. End recap section
ECSCIA, European Centre of Supply Chain Information Architecture

18. The DELIVER perspective focuses on physical
movement and how that consumes energy, moves
compounds and executes compliant to rules.
Energy CO2 Compounds & substances Product compliance Trade & legal compliance
ECSCIA, European Centre of Supply Chain Information Architecture

19. DELIVER is a FROM-TO activity. “Total Sustainability
Scope for DELIVER” (ToSuS_D) Is the full scope of facts
that affect sustainability across several FROM- TO legs
ToSuS_D
ECSCIA, European Centre of Supply Chain Information Architecture

20. “Sustainability Weight Deliver” (SuS_W¨_D) is the
quantified sustainability weight of a delivery
operation
SuS_W_D
ECSCIA, European Centre of Supply Chain Information Architecture

21. Routes
Modes of
transport
Locations Locations
Visibility of sustainability weight in “DELIVER” requires knowing “From location”,
“To location” and “How”. “How” is affected by conditions and compliance rules
ECSCIA, European Centre of Supply Chain Information Architecture
From To
How
Conditions
Trade & legal
compliance rules

22. Modes of
transport
Understanding the sustainability cost of a Mode Of Transport requires know facts
on the composition of the enablers for that mode
ECSCIA, European Centre of Supply Chain Information Architecture
Product
structures,
”Bill of material”
Compound &
substance
structures
Detailed
understanding of the
vehicle/vessel.
Detailed
understanding of the
composition of the
fuel used.
Facts on the value chain behind that
fuel
Facts on the value chain behind that
vehicle/Vessel

23. “Sustainability weight”
Routes
Modes of
transport
Conditions
Digital management of sustainability requires gathering more
facts. Calculating and optimizing “sustainability weight” from the DELIVER
perspective requires facts on modes of transport, routes and conditions to
an increased level of detail and with a wider scope
It´s no longer enough to know Mode of transport = “Ship” or “Air”.
Sustainability requires knowing details like engine technology, equipment
used and what fuel that ship/airplane is running on as well as what value
chains that fuel & technology was obtained through. It also requires
understanding the route down to greater detail and the conditions the
ship/plane travels that route under. It is no longer enough to know “Mode of
transport = Truck”. Sustainability requires knowing details of driver training
and certification as that has high impact on fuel consumption and
consequently emissions.
Value chains
ECSCIA, European Centre of Supply Chain Information Architecture

24. Getting to “How” requires knowing “What”. Mode of transport and route is
dependent on what is being shipped
Product
structures,
”Bill of material”
Compound &
substance
structures
Dimensions
Items,
catalogues and
launch plans
What is being delivered,
what is “the product”?
What is that products composition
and what does that imply to
transport?
What are the physical
dimensions? (from a
transport perspective)?
ECSCIA, European Centre of Supply Chain Information Architecture

25. Getting to “How sustainable” requires knowing context. Choice of Mode of transport and route is dependent of the
contractual/legal framework, physical reality and transactional reality
Contracts &
agreements
Sustainability
weight/cost
measures
Conditions
Trade & legal
compliance rules Lead times
Customer orders
Sales orders
Purchase orders
ECSCIA, European Centre of Supply Chain Information Architecture
The strategic/tactical
sourcing team is key
to securing a digital
fact base for
sustainability in
DELIVER
Sustainability weight
originates from facts that
tend to be lacking clear
single points of reference
in organisations
Document twin,
Document twin,
Document twin
Fundamentally easy
but often victim to
interpretation and
pragmatics
New cools stuff.
Who sets the rules for
structure and
maintenance?
Request territory
How
sustainable?
Option territory
“All I want is a
simple answer:
How sustainable at
what cost when?”

26. The sustainability impact of hubs & consolidation
From To
11+11 = 22
To
From
From To
To
From
Hub Hub
11
11
2
2
2
2
7
2+2+2+2+7 = 15
ECSCIA, European Centre of Supply Chain Information Architecture

27. Sustainability, reflections on storage/inventory
PRO side CON side
Storage strategy and inventory introduces slack and cost in supply chains. If every node in a supply chain was
completely dynamic and able to scale up/down independently from other nodes in real time without any effect on
efficiency or cost, inventory would be a waste. In reality, nodes in supply chain have limitations. They can not scale
up and down and they cannot operate equally efficient at all volumes and despite digitalization, all movements
cannot be planned for and synchronized. Inventory is needed to cover for lead times and optimize volume sin each
step of the chain. Inventory and network strategies have both positive and negative impact on the sustainability foot
print of value chains
ECSCIA, European Centre of Supply Chain Information Architecture

28. Sustainability, reflections on storage/inventory
Storing requires energy
Storing causes obsolescence
Inventory allows for optimizing
procurement
Inventory reduces volatility
when meeting service level
Storing adds nodes to the network Inventory allows for optimizing
production
Inventory introduces slack that
simplifies digital processing
Storing ties up capital
ECSCIA, European Centre of Supply Chain Information Architecture

29. Consignment stock and collaborative planning, sustainability tools
Has potential to reduce obsolescence through collaborative planning
Allows for optimizing procurement
Reduces volatility when meeting service level
Allows for optimizing production on both sides
Has potential to reduce data quality slack which simplifies digital processing
Consignment stock
Ties up capital
Locks goods at one node in the supply chain
Collaborative planning
Decoupled quantities in
logistics
Decoupled quantities in
procurement
Decoupled quantities in
production
Supplier Buyer
Optimize CO2e
Allows for optimizing logistics
ECSCIA, European Centre of Supply Chain Information Architecture

30. Decomposition and political routing in the sustainability toolbox
In this context, the term decomposition is used for the concept of building something to a level of completeness and
then taking it apart. Decomposition in supply chains can be driven by need to test the product in a complete state
before shipping it in a disassembled state the fits better to logistics.
In this context political routing describes (but is not limited to) the concept of using decomposition and reassembly to
achieve/place value add in several countries/regions driven by political decisions rather than supply chain optimization.
The assemble-disassemble-ship -assemble steps of decomposition introduces waste in MAKE (same product built
twice), but the logistics benefits and consequent sustainability gains might be greater than that waste as goods can be
shipped more efficiently.
Political routing is by nature inefficient from a supply chain perspective but might have an element of ESG
(Environmental, Social, Governance ) in it as it might allow for distributing jobs and wealth to countries/regions that
otherwise has a hard time competing/entering in the accelerated global market.
ECSCIA, European Centre of Supply Chain Information Architecture

31. Decomposition
Product
structures,
”Bill of material”
Engineering
view
Sourcing view
Manufacturing
view
Logistics
view
MAKE
Manufacturing
view
DECOMPOSE
Sourcing view
RE-ASSEMBLE
DELIVER
Product
Product
Part
Part
ECSCIA, European Centre of Supply Chain Information Architecture

32. Political routing
MAKE RE-ASSEMBLE
Product DECOMPOSE
DELIVER
Product
Part
Part
Legal/political
value addition,
geography 1
Legal/political
value addition,
geography 2
ECSCIA, European Centre of Supply Chain Information Architecture

33. The role of towers to achieve sustainability in DELIVER
ECSCIA, European Centre of Supply Chain Information
Architecture
Orders
Plan
Evaluate
delivery
options
Select and
execute
Delivery
options
Cost
Time
Sustainability weigh
Planning
tower
Buy/Sell
Strategic planning
Logistics tower
Sourcing tower Sales tower
Tactical planning
Operational planning Data
Data
Data

34. Supply chain sensing and monitoring for sustainable DELIVER
Sensing and monitoring are tools to ensure that tactual DELIVER activity does not
deviate from the sustainability indicators handshaked with stakeholders: (“promises
made”) and targets set (the direction to steer towards and mitigate deviations from)
ECSCIA, European Centre of Supply Chain Information Architecture

35. ECSCIA, European Centre of Supply Chain Information
Architecture
Supply chain sensing and monitoring for sustainable DELIVER
Simple business document sensing
(start and stop node)
Continuous Business document
sensing (multiple nodes)
Continuous event sensing
Continuous, event based visibility of
product/part/goods/”Container “ from
technologies like IoT sensors, RFID, Image
processing as it moves through the DELIVER
chain
Visibility is obtained from sensor data records
rather than business transaction
Initial and final visibility as goods is issued
from the first node in the DELIVER chain and
finally received at the last node.
Visibility is obtained from commercial
documents (business transactions) generated
from business transactions that are created
independently of sensing/monitoring.
Continuous visibility as goods moves through
the DELIVER chain.
Visibility is obtained from from commercial
documents, some specifically issued for track
and trace.

36. Prepare to avoid daily incidents, be
sustainable ever day kind of thing.
Be “sustainability smart” from the beginning. Include sustainability weight/risk from
day one when doing strategic supply chain network design and when executing
daily supply chain tasks
Prepare and expect “unexpected”
large incidents, manage their
sustainability impact.
ECSCIA, European Centre of Supply Chain Information Architecture