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Going Green by Saving Green
          Advancing Sustainability and Financial Goals in Unison
 Bryan is the strategist and ...
What Makes Them Special?       2009


    Apple                 Wal-Mart
    Nokia                 Toyota Motors
    Dell ...
2009




   Making the Green Case




WELCOME to the FORUM
Green Defined                            2009

   United Nations definition
   – “Sustainable Development is development t...
The Opportunity
                                     2009




WELCOME to the FORUM
What the Future Holds
         Growth of the Global Middle Class will Strain Finite
                                      ...
Sustainability Seen as an
                           Extension of Lean                                    2009

       53%...
Companies Will be Held
                        Accountable for       2009
                        Green Practices




 Sou...
“Green is Green” – Lessons
                     from GE                           2009



 • CEO of General Electric Jeffr...
Green is a Competitive Advantage                            2009

 According to a recent IDC U.S. Green IT Survey, 40% of ...
Green Business is Good Business          2009


          Mitigate business risks
          Reduce costs
          Motivat...
Traditional Invoice & Payment
        Challenging for your Business and the Environment            2009


                ...
Governmental Regulations
                     and Customer Requirements                                            2009


...
Going Green Is Important to
                   Executives                                   2009

 According to a recent I...
IT Plays a Critical Role                        2009

 According to a recent IDC U.S. Green IT Survey, 75% responded
 that...
Green IT Suppliers Are
                      Preferred                                      2009


 According to a recent ...
2009




   Green Supply Chain




WELCOME to the FORUM
Green Supply Chain Defined
                                                                        2009

   Enabling busin...
Supply Chain Inefficiencies and
                  Environmental Implications                                              ...
Green Supply Chain Benefits
                                                                      2009

    Remove ineffic...
Transportation Optimization and Fuel
                            Reduction                        2009

  eyefortransport’...
Transportation Optimization and Fuel
                             Reduction                                               ...
Perfection Yields Sustainability
                                                                                         ...
2009




   Case Studies and Findings




WELCOME to the FORUM
Automation and Digitization Removes
                           Paper Waste                2009




    According to Aberde...
B2B Carbon Savings Example -
                          Paper                                                              ...
Dow Jones Sustainability Index                                 2009


    First, the concept of corporate sustainability i...
Case Study - Retailer                                                             2009
   A large European retailer implem...
Useful Links                           2009


    http://www.sustainability-
    index.com/djsi_protected/djsi_world/compo...
What Makes Them Special?       2009


    Apple                 Wal-Mart
    Nokia                 Toyota Motors
    Dell ...
The Green Supply Chain 2009
          Advancing Sustainability and Financial Goals in Unison


        Bryan Scott Larkin
...
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Bryan Larkin On Green Supply Chain Ahma Hardlines Technology Forum 2009

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Bryan Larkin, GXS Director of Retail and Consumer Products Marketing, presented at the American Hardware Manufacturer Association's Hardlines Technology Forum during April 2009 in Philadelphia, PA.

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Bryan Larkin On Green Supply Chain Ahma Hardlines Technology Forum 2009

  1. 1. Going Green by Saving Green Advancing Sustainability and Financial Goals in Unison Bryan is the strategist and marketing leader for the consumer products, retail and high tech industries for GXS. Bryan has spoken at conferences in the US and Europe, has authored over 30 articles, and participates in industry organizations to help advance best practices and standards within the industries he supports. WELCOME to the FORUM
  2. 2. What Makes Them Special? 2009 Apple Wal-Mart Nokia Toyota Motors Dell Cisco P&G Samsung IBM Anheuser-Busch 2 WELCOME to the FORUM
  3. 3. 2009 Making the Green Case WELCOME to the FORUM
  4. 4. Green Defined 2009 United Nations definition – “Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” Environmental sustainability is often the primary focus of Corporate Social Responsibility (CSR) programs The terms ‘green’ and ‘sustainability’ are used interchangeably GXS green statement – “GXS operates in an environmentally responsible manner and seeks opportunities to reduce our impact and that of our customers on our natural resources” WELCOME to the FORUM
  5. 5. The Opportunity 2009 WELCOME to the FORUM
  6. 6. What the Future Holds Growth of the Global Middle Class will Strain Finite 2009 Resources and Infrastructure 1950 − 3 Mega Cities: – New York – Shanghai – London 2000 − 30 Mega Cities: – 23 in the developing world 6 WELCOME to the FORUM
  7. 7. Sustainability Seen as an Extension of Lean 2009 53% of companies say that environmental spending tops Corporate Social Responsibility (CSR) investments Highest priorities are reducing energy consumption (50%) and solid waste (20%) Over half say that spending on Green initiatives will increase in 2009 41% of sustainability initiatives are local in nature Brand enhancement and business opportunity are the two leading reasons companies launch sustainability programs within the supply chain. Source: AMR Research 7 WELCOME to the FORUM
  8. 8. Companies Will be Held Accountable for 2009 Green Practices Source: GlobeScan 8 WELCOME to the FORUM
  9. 9. “Green is Green” – Lessons from GE 2009 • CEO of General Electric Jeffrey Immelt • “Green is green” • “There’s a lot of money to be made here” • “It doesn’t make me afraid or scared. There’s a tidal wave coming, and you either get ahead of it or you get crushed.” • GE makes money and improves the environment at the same time by developing new technology • Ecoimagination far surpassed GE’s goals • GE thought it would cost $100 million to reduce its carbon footprint, but instead the company saved $100 million in energy costs WELCOME to the FORUM
  10. 10. Green is a Competitive Advantage 2009 According to a recent IDC U.S. Green IT Survey, 40% of companies have a policy in place favoring ‘green’ suppliers. WELCOME to the FORUM
  11. 11. Green Business is Good Business 2009 Mitigate business risks Reduce costs Motivate better performing suppliers Preserve business continuity Enhance market access Strategic importance 11 WELCOME to the FORUM
  12. 12. Traditional Invoice & Payment Challenging for your Business and the Environment 2009 Invoice Process Input to Print Mail Accounting Validate & Approve Invoice Invoice System Match Payment Payment Process Funds Check Lockbox Mail Print Transfer Clearing Processing Check Check 12 WELCOME to the FORUM
  13. 13. Governmental Regulations and Customer Requirements 2009 Environmental health and safety (EH&S) – Global regulations spanning employment, hazard “This is only the beginning, materials, food safety, building materials, etc. there is similar legislation (to RoHS) pending in The European Union is generally ahead of the China. The challenge for U.S. in restricting toxic substances in the electronics industry is electronic products*: not just compliance with – Waste Electrical and Electronic Equipment RoHS: It’s also about (WEEE) managing the environmental impact of – Restriction of Hazardous Substances our products.**” (RoHS) Directive Paul Tallentire, President, US has new 10+2 requirements for Newark InOne inbound shipments * Eric Karofsky and Simon Jacobson, AMR Research, 2005 **EDNAsia, June 2005 The "greening" of the supply chain 13 WELCOME to the FORUM
  14. 14. Going Green Is Important to Executives 2009 According to a recent IDC U.S. Green IT Survey, 71% responded that the goal or reducing their organization’s environmental impact was “important” or “very important” to senior management. WELCOME to the FORUM
  15. 15. IT Plays a Critical Role 2009 According to a recent IDC U.S. Green IT Survey, 75% responded that the role of IT will play in reducing environmental impact was “important” or “very important”. WELCOME to the FORUM
  16. 16. Green IT Suppliers Are Preferred 2009 According to a recent IDC U.S. Green IT Survey, 77% responded that it is “important” or “very important” for an IT supplier to be green. WELCOME to the FORUM
  17. 17. 2009 Green Supply Chain WELCOME to the FORUM
  18. 18. Green Supply Chain Defined 2009 Enabling businesses to securely and seamlessly convert manual and paper-based processes into automated electronic transactions among vendors, partners and customers while making business transactions more efficient and reducing the impact on the environment Aligning supply chain and environmental goals so that there is collaboration in efforts to reduce the combined carbon footprint Pursuing a reduced supply chain carbon footprint actually helps improve the bottom line WELCOME to the FORUM
  19. 19. Supply Chain Inefficiencies and Environmental Implications 2009 Automating supply chain transactions can reduce carbon waste impacts while also reducing the costs associated with manual transactions. Supply Chain Inefficiencies Resulting Environmental Implications • Keystroke entry, and other manual efforts such as • Use of air freight instead of more optimal shipping ordering, receiving, pick/pack/ship, and comparing methods receipts to invoices, lead to the costly problems • Use of too many trucks to ship loads faced by companies today • Routes that are not optimized • Depending on your industry, you may face: • Trucks that use too much fuel • Compliance penalties costing 2% or more of • Paper used for various manual processes internally gross sales and externally – and paper is one of the most • Out-of-stock rates of between 8% and 10% environmentally unsound of all manufacturing • Expedited shipping to rectify out of stock issues processes Shipping loads that are not optimized • Fuel and other impacts associated with mailing • Unnecessarily high inventory levels paper (invoices) • Slow settlement when paper invoices are sent • Fuel and other impacts associated with shipping via mail (increased DSO) paper that will be used • Inability to take advantage of early pay discounts WELCOME to the FORUM
  20. 20. Green Supply Chain Benefits 2009 Remove inefficiencies and waste • Reduce fuel use through reduce, reuse, and • Reduce expediting recycling • Optimize manufacturing Reduce errors through digitizing • Reduce stock outs documents • Improve inventory turns Automate manual processes • Reduce unnecessary inventory and Optimize transportation and safety stock shipping • Improve the procure-to-pay cycle Reduce packaging and logistics spend • Increase corporate productivity, profits and public reputation Increase Perfect Order Performance WELCOME to the FORUM
  21. 21. Transportation Optimization and Fuel Reduction 2009 eyefortransport’s July 2008 Green Transportation & Logistic Survey Results A typical company spends 8-20% of its annual revenue on Transportation B2B technology such as a Transportation and Logistics visibility solutions can help shippers make better decisions, improve utilization, reduce expedites and significantly reduce spend Specifically if a company can reduce or eliminate Air Freight expedites they are eliminating the most polluting and expensive way to move product www.eyefortransport.com WELCOME to the FORUM
  22. 22. Transportation Optimization and Fuel Reduction 2009 eyefortransport’s July 2008 Green Transportation & Logistics survey results also revealed that government compliance, improved customer and public relations, a decreased fuel bill, and financial ROI are important drivers for transport and logistics greening initiatives. WELCOME to the FORUM
  23. 23. Perfection Yields Sustainability 2009 • “Green” or environmental sustainability initiatives are part of almost every company’s goals • Perfect Order initiatives demand similar discipline and some of the same initiatives 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
  24. 24. 2009 Case Studies and Findings WELCOME to the FORUM
  25. 25. Automation and Digitization Removes Paper Waste 2009 According to Aberdeen Group, for a company that processes 500,000 invoices per year, the cost to process a manual invoice can be reduced by 60 percent or more when automation is implemented Additionally, companies can realize even greater savings and reduced environmental impact by automating other supply chain documents such as purchase orders, payments and advanced ship notices WELCOME to the FORUM
  26. 26. B2B Carbon Savings Example - Paper 2009 Based on our analysis of transactions, kilo- If each of the estimated 40 billion B2B character counts and paper equivalents the transactions undertaken worldwide each year potential savings generated by companies were automated, the environmental impact currently using GXS Trading Grid is would be equivalent to saving: equivalent to: • 68 million pounds of CO2, the equivalent of • 680 million pounds of CO2, the equivalent of taking taking 6,224 cars off the road for a year or 62,240 cars off the road for a year or reducing reducing gasoline consumption by 11.5 million gasoline consumption by 115 million gallons or gallons each year 2.4 million barrels of oil • 40 thousand tons of wood, saving the equivalent • 400 thousand tons of wood, the equivalent of 2.79 of 279,6740 trees million trees • 460,770 million BTUs of total energy • 4.6 billion BTUs of total energy consumption, the consumption, the equivalent of that consumed equivalent of about 50,630 homes per year by 5,063 homes per year • 228 million gallons of water, the equivalent of • 2.28 billion gallons of wastewater, the equivalent of filling 346 swimming pools about 3,460 swimming pools WELCOME to the FORUM
  27. 27. Dow Jones Sustainability Index 2009 First, the concept of corporate sustainability is attractive to investors because it aims to increase long-term shareholder value. Since corporate sustainability performance can now be financially quantified, they now have an investable corporate sustainability concept. Second, sustainability leaders are increasingly expected to show superior performance and favourable risk/return profiles. A growing number of investors is convinced that sustainability is a catalyst for enlightened and disciplined management, and, thus, a crucial success factor. 27 WELCOME to the FORUM
  28. 28. Case Study - Retailer 2009 A large European retailer implemented outsourced B2B messaging to move transactions between itself and its suppliers. Besides reduction in paper use, this retailer has optimized transportation, thus reducing greenhouse gas emissions This retailer has eliminated 182 metric tons of and helped suppliers optimize their paper using B2B. If paper was used, it would planning, thus reducing unnecessary require: production. At the same time they have • 661 tons of wood, the equivalent of about reduced costs and increased revenue. 4,573 trees • the consumption of 7,527 million BTU's of energy, the equivalent of the energy used Business Challenge by about 83 homes each year – ASN failure and errors cost retailer over $1.2M / • 1,120,108 lbs (560 tons) CO2 equiv., year about the CO2 emitted by approximately – An additional $50K – 100K / day in lost sales 102 cars yearly stemming from shipments turned away • 3,738,049 gallons of water, the – Labor intensive and time consuming manual equivalent of maintaining about 6 receiving processes or rejection of goods Olympic sized swimming pools Environmental impact estimates were made using the – No centralized visibility or root cause analysis of errors Environmental Defense Fund Paper Calculator. For more information visit http://www.papercalculator.org WELCOME to the FORUM
  29. 29. Useful Links 2009 http://www.sustainability- index.com/djsi_protected/djsi_world/components/SAM_DJSI World_Components.pdf http://www.environmentalleader.com/2007/06/04/top-10- greenest-companies-in-the-world/ http://ge.ecomagination.com/smartgrid/#/landing_page www.greensupplychain.com 29 WELCOME to the FORUM
  30. 30. What Makes Them Special? 2009 Apple Wal-Mart Nokia Toyota Motors Dell Cisco P&G Samsung IBM Anheuser-Busch 30 WELCOME to the FORUM
  31. 31. The Green Supply Chain 2009 Advancing Sustainability and Financial Goals in Unison Bryan Scott Larkin Director, Strategy and Marketing Retail, Consumer Products, and High Tech GXS bryan.larkin@gxs.com http://twitter.com/bslarkin http://delicious.com/bslarkin WELCOME to the FORUM

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