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Green Your Supply Chain V1


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This is presentation I gave at the Canadian Purchasing Professional Annual conference on Greening your supply chain through collaboration

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Green Your Supply Chain V1

  1. 1. Greening your Supply-Chain Rob Sinclair
  2. 2. Goals of Today ‣ Review corporate responsibility through the lens of systems thinking. ‣ Review carbon footprint analysis of a supply chain. ‣ Understand the Green Supply Chain (GSC) ‣ Understand the impact of collaboration on efficiency and profitability ‣ A take-home of 10-steps of greening your office.
  3. 3. Who Am I ‣ A dad that travels too much ‣ Part of a sustainability collective that specializes is CRS around systems thinking ‣ A Collaborateur that help businesses talk with other business around supply chain and sustainability issues
  4. 4. What we know ‣ everything we do has an impact on the environment. ‣ Past, ‘back-page’ stories are now ‘front-page’ ‣ collective efforts have more impact than individual ones ‣ collaboration must become part of every leader’s lexicon ‣ we need to think BIG! ‣ we need to start small
  5. 5. Current Situation We have got into the predicament we are in today because we have focused on parts and neglected the whole.
  6. 6. The CO2 bathtub 5 billion tons added 8 billion every year tons go in 3 billion tons go out
  7. 7. Our Current CO2 bathtub 800 billion tons 380 ppm
  8. 8. Re-think Climate change is but one thread in a larger cloth; we cannot simply remove the thread, but we must reweave the cloth.
  9. 9. Using Backcasting 2 Dec lining y Res nom our co ve E ces rati to Res Sustainable Supply 1 3 Vision Current New Reality Reality Sustainable Demand Res and tora tive Dem Eco ce our nom Res y g in eas ncr Bridging I Gap 4
  10. 10. Our Old Thoughts ‣ Energy is infinite and cheap ‣ There will always be enough room to dispose of all our waste, ‣ Humans are the primary species on earth; others are less important, and many are irrelevant ‣ Basic resources such as water and topsoil are unlimited. If limits or problems are encountered, markets and new technologies will re-allocate financial resource so we can continue with our current ways of living and workin. ‣ Productivity and standardization are keys to economic progress, ‣ Economic growth and rising GDP are the best way to ‘lift all boats’ and reduce social impact
  11. 11. New paradigm ‣ Surf the flux. Live within out energy income by relying on forms of energy that come from renewable sources such as solar, wind, tidal, and bio-based inputs ‣ Zero to landfill. Everything from cars and iPods to office buildings and machines, is 100% recyclable, remanufacturable or compostable. ‣ We are borrowing the future from our children; we have to pay it back. Our first responsibility is to leave a healthy global biosphere for our children - their children’s children... ‣ In a global village, there is only one boat, and a hole sinks us all.
  12. 12. consider the entire system
  13. 13. Seeing Systems ‣ Looking past the symptoms and into the cause ‣ We don’t need to know all the answers
  14. 14. Green supply-chain Overview
  15. 15. Benefits of a GSC ‣ Improves Agility—Green supply chain management help mitigate risks and speed innovations. ‣ Increases Adaptability—Green supply chain analysis often lead to innovative processes and continuous improvements. ‣ Promotes Alignment—Green supply chain management involves negotiating policies with suppliers and customers which results in better alignment of business processes and principles.
  16. 16. New Watchwords ‣Trust, Transparency and Traceability The Food Marketing Institute’s survey, “U.S. Grocery Shopper Trends 2007,” reported that consumer confidence in the safety of the food supply has dropped dramatically. Confidence had consistently hovered in the 80th percentile for years, but dropped to 66 percent, the lowest point since 1989. Consumer confidence in the safety of restaurant food is even lower, at 43 percent.
  17. 17. End Consumer Trends ‣
  18. 18. Industry Response Goals of Green Supply Chain Reduce overall business costs 56% Enhance company social responsibility 51% Improve profits 42% Improve visibility into green supply chain drivers 49% Reduce waste/improve disposal methods 38% Source Aberdeen Group 2008
  19. 19. Checking In ‣Who is doing what?
  20. 20. GSC Best Practices ‣ Align green supply chain goals with business goals ‣ Evaluate the supply chain as a single life cycle system ‣ Use green supply chain analysis as a catalyst for innovation ‣ Focus on source reduction to reduce waste
  21. 21. Collaboration (define) The new promise of collaboration is that with peer production we will harness human skills, ingenuity, and intelligence more efficiently and effectively than anything we have witnessed previously
  22. 22. Current Trends
  23. 23. Current Trend(s)
  24. 24. The Whole System
  25. 25. Product LCA
  26. 26. The Whole System
  27. 27. Areas of focus ‣ Pollution and waste represent incomplete, ineffective, or inefficient use of raw material. ‣ GS collaboration analysis provides an opportunity to review processes, materials, and operational concepts. ‣ GS analysis targets: ‣ Wasted material ‣ Wasted energy or effort ‣ Under-utilized resources
  28. 28. Challenges ‣Trust ‣Cultural differences ‣Organizational barriers ‣Un-sustained executive commitment and involvement ‣Technology differences ‣and others.
  29. 29. The 3-Steps ‣Internal Buy-in and systems ‣Evaluate Potential Peers ‣Work towards innovation through collaboration
  30. 30. Step 1- Internal buy-in ‣ Get executive buy-in ‣ Form a sustainability team ‣ Explain the Mutual Benefits ‣ Set a sustainability vision and goals ‣ Keep it simple - Thinking big, starting small.
  31. 31. Step 1- cont. ‣ Focus where Revenue and Profit are greatest ‣ Map your supply chain ‣ Link Incentives to overarching vision ‣ Aim for Continuous Improvement ‣ Considering other areas of compliance that you want to promote through supplier selection.
  32. 32. Partner Criteria ‣ Both sides need to come to the table. ‣ 75% of the battle is simple communication, which seems like it should be so easy but ends up being the barrier; draft a MOU ‣ Focus on collaboration with companies that have both the willingness and the capacity to collaborate. ‣ Funny how a true win-win seems to lead to more rapid adoption and ultimate success.
  33. 33. Towards innovation ‣ Standardized content for industry supplier questionnaires ‣ Establishing good processes that are streamlined, flexible and duplicatable. ‣ Recognizing and rewarding the true value in your supply chain. ‣ Considering other areas of compliance that you want to promote through supplier selection. ‣ what is the balance and what are the constraints? ‣ Extended vender responsibility ‣ Thinking big, starting small.
  34. 34. Overall Benefits ‣ Improve Brand Image ‣ Employee Productivity & Morale ‣ Reduce Risk ‣ Increase Profits ‣ Identify New Markets ‣ Establish new best practices in your industry
  35. 35. 10 easy steps ‣ Be bright about light - Artificial lighting accounts for 44 percent of the electricity use in office buildings. ‣ Maximize computer efficiency - Computers in the business sector unnecessarily waste $1 billion worth of electricity a year. ‣ Print smarter - The average U.S. office worker goes through 10,000 sheets of copy paper a year. ‣ Go paperless when possible - Make it a habit to think before you print: could this be read or stored online instead? ‣ Ramp up your recycling - Make it a habit to recycle everything your company collects. ‣ Close the loop - Make it a policy to purchase office supplies and furniture made from recycled materials. ‣ Watch what (and how) you eat - Make it a habit to bring your own mug and dishware for those meals you eat at the office. ‣ Rethink your travel - Make it a habit to take the train, bus, or subway when feasible instead of a rental car when traveling on business. ‣ Reconsider your commute - Make it a habit to carpool, bike, or take transit to work, and/or telecommute when possible. ‣ Create a healthy office environment - Make it a habit to use nontoxic cleaning products. Brighten up your cubicle with plants, which absorb indoor pollution.
  36. 36. Collaborative Tools ‣Google Docs - ‣Net Suite - ‣Mind Meister - ‣NING - ‣LinkedIn - ‣Survey Monkey - ‣Write Board - 36
  37. 37. Resources Web: ‣ ‣ ‣ ‣ ‣ Food Trade Sustainability Leadership Association - ‣ Google Docs ‣ Books: ‣ Living Supply Chains, John Gattorna ‣ Wikionomics, Don Tapscott ‣ Small Giants, Bo Burlingham 37
  38. 38. Thank-you Q & A:
  39. 39. Contact info Rob Sinclair ph: 403.697.9314 e: 39
  40. 40. Keys to success “... you should only collaborate with those customers and (suppliers) who genuinely want to collaborate. For the rest, you do whatever you have to do, but don’t waste your time trying to be collaborative- it is too wasteful on resources,” Unilever’s former CEO, Anthony Burgmans
  41. 41. Supply Change Systems
  42. 42. What others are doing ‣3PL - (Third Party Logistics) - Benefit ‣A seamless, 360-degree view of the supply chain. ‣Access to and knowledge about the global marketplace. ‣Improved customer service ‣Enhanced business processes ‣Improved capacity during peak seasons or promotions ‣Higher service levels at lower cost. ‣Improved new product introduction and management of new SKUs (product lifecycle management) ‣Reduced inventory and stockouts as a result of collaborative forecasting activities ‣Navigating governmental regulations
  43. 43. Actions Required ‣Sustainable Food Industry standarization ‣Develop a set of questions to ask? ‣Know who to ask them to? medium? ‣How will they be rewarded? ‣What are two supply chain issues?
  44. 44. Benefits of working with GiG • Protection from Greenwashing • Staff involvement and incentive programs that tie in with your overall sustainability goals