2. Background
Dave Pedersen
Supply Chain Director (SoCal) for Resources Global
Member, Hermosa Beach Green Task Force
B.S. Chemical Engineering (USC) / MBA (UCLA Anderson)
Resources Global Professionals
Founded in 1996, we are publicly traded (RECN) with 80
offices in 22 countries.
FY 2009 revenues of $686 million.
We help firms execute on their initiatives within Supply
Chain, Accounting/Finance, IT, Human Capital, Legal and
Internal Audit.
90% of the Fortune 50 have been our clients.
3. Definitions
Supply Chain Management encompasses the planning and
management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities. (CSCMP)
In other words, Supply Chain Management encompasses
these core functions:
Plan
Buy
Make
Store
Move
Related business processes are highly integrated as well (for
example, Procure to Pay process). IT functionality is heavily
utilized within “Best of Class” Supply Chains.
4. Supply Chain turns Green
Supply Chain Management has traditionally worked to
optimize business solutions between these constraints:
Cost
Quality
Service
“Going Green” introduces additional constraints in these
areas:
Carbon
Waste
Water
Social Impacts
5. Drivers
Laws: Federal, State and Local
Investor groups: Carbon Disclosure Project
“Non Governmental Organizations” (NGO’s)
Consumer preference and brand equity
Business Partner Mandates aka Walmart
Employee retention and satisfaction
Cost Reduction from Efficiencies
6. Moving toward a Green Supply Chain
Optimizing Transportation Mix ( Rail vs. Truck vs. Air).
Improving Fleet efficiency (hybrids, biodiesel, etc.).
Changes in delivery lot sizes and order frequency.
Reduction of floor space requirements through Inventory
Optimization.
Alternative Energy usage at company facilities.
Improved scrap efficiency within the manufacturing process.
Sourcing locally to reduce transportation footprint.
Locating factories within countries or regions that best fit your
sustainability criteria.
Moving administrative processes to a paperless environment.
Considering “End of Life” factors in design criteria.
7. What Interface Carpet has done….
…then he challenged his
company to climb “Mount
Sustainability”.
Since 1994, Interface has
achieved the following:
In 1994, Interface CEO Ray Cut GHG emissions by
Anderson read “The Ecology 82%
of Commerce” by Paul Cut Fossil Fuel usage by
Hawken: 60%
“The point of that story felt Cut Waste by 66%
just like the point of a spear
driven straight into my Cut Water use by 75%
heart….. I thought ’My God, Increased sales by 66%,
someday, they’ll send people doubled earnings and
like me to jail’.” raised profit margins