Putting The Green Supply Chain In Context Ahma Webinar December 2009


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A webinar delivered to the American Hardware Manufacturers Association (AHMA) Hardlines Technology Forum Group in December 2009 by Steve Keifer of GXS and Bryan Larkin of Digital Management

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Putting The Green Supply Chain In Context Ahma Webinar December 2009

  1. 1. Putting the Green Supply Chain in Context Presented by: Bryan Scott Larkin, Chief Supply Chain Strategist, Digital Management Steve Keifer, VP of Industry and Product Marketing, GXS WELCOME to the FORUM
  2. 2. Agenda Even in a bad economy, sustainability is real The bigger you are…the harder you fall for sustainability You can make a difference Why you should come to the Forum! 2 WELCOME to the FORUM
  3. 3. COP 15 This Week Key Topics of Discussion • Goals for Carbon Emissions by Country • Will the US cut emissions by 83% by 2050? • Will China and India cut aggressively? • How to Finance the Programs • Rich countries subsidize the poor • Cap & Trade • New Taxes on Shippers 3 WELCOME to the FORUM
  4. 4. Supply Chain Sustainability: The Opportunity WELCOME to the FORUM
  5. 5. “Green is Green”: Lessons from GE • 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
  6. 6. Doing Good Is Good For You • University of Nevada, Reno • Center for Logistics Management • Sustainable Supply Chain Project • Research into Supply Chain Sustainability • Focus on companies with operations in developing countries • Findings • Sustainability focused companies outperform their peers • Firms that engage strongly in sustainable supplier selection realize various advantages over their competitors • This also holds true for social and environmental efforts in supplier monitoring… 6 WELCOME to the FORUM
  7. 7. Sustainability: Green and Dollars Hand in Hand 7 WELCOME to the FORUM
  8. 8. Your Supply Chain, Not Just You 8 WELCOME to the FORUM
  9. 9. Environmental Sustainability Provides Competitive Advantages 9 WELCOME to the FORUM
  10. 10. 10 WELCOME to the FORUM
  11. 11. Demand Planning Physical Supply Chain Smarter for Your Business and the Environment Customer Vendor Late Stage Collaborative Build to Inventory Self- Managed Configuration & Demand Order Consignment Configure Inventory Postponement Planning (or Configure) Brand Contract Component Customer Retailer Distributor Owner Manufacturer Supplier Quotes & Point of Trade Sales Sale Inventory Sales New Product Promotions Activity Transactions Positions Forecasts Introductions Schedule 11 Information Supply Chain WELCOME to the FORUM
  12. 12. 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
  13. 13. Optimizing Transportation Smarter for Your Business and the Environment Air Ocean Ground Rail Freight Freight (LTL, TL) Freight Transportation Management System Transportation Network Modeling Lane Optimization & Consolidation Tracking of Shipment, Order, Inventory Total Landed Cost Analysis Carrier Scorecards & Performance WELCOME to the FORUM
  14. 14. Traditional Invoice & Payment Challenging for your Business and the Environment 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 WELCOME to the FORUM
  15. 15. 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 http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and-Demand-Chain-Executive-Announces-Its-2009-Green- Supply-Chain-Awards/60$11835 15 WELCOME to the FORUM
  16. 16. Case Studies Sporting Consumer Animal Equipment Packaged Medicines & Manufacturer Goods Brand Vaccines Saved equivalent of Prevented Eliminated 17 Tons 22,200 gallons of consumption of of Paper from wastewater 1,100 Million BTUs Supply Chain of energy 16 WELCOME to the FORUM
  17. 17. Governmental Regulations and Customer Requirements 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 17 WELCOME to the FORUM
  18. 18. 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. 18 WELCOME to the FORUM
  19. 19. Green Business is Good Business Mitigate business risks Reduce costs Improve performance Motivate better performing suppliers Preserve business continuity Enhance market access Strategic importance 19 WELCOME to the FORUM
  20. 20. When you come to the Forum… 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! 20 WELCOME to the FORUM
  21. 21. Join us! To learn more about this year’s Hardlines Technology Forum, visit our website at ahma.org/HTF 21 WELCOME to the FORUM