Responsible Supply Chains 2.4.17
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Joanne Gorski presented on responsible supply chain management. She discussed challenges like meeting customer demands, the "Amazon Effect", and the SCOR model. SCOR is a framework that links business processes and metrics. Sustainable procurement considers social, economic and environmental impacts. Examples given were Tiffany's ensuring conflict-free diamonds and Patagonia repairing products. The presentation concluded with a Q&A.
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- 1. Responsible Supply Chain Management UW-Oshkosh Executive MBA Presentation February 4, 2017 Joanne Gorski, SCOR-P, CFPIM, CSCP, CLTD, Green Manufacturing Specialist President, Sustainable Insights Joanne.Gorski@sustainableinsightsllc.com
- 2. Biography • Sustainability/Supply Chain Consultant • Certification Chair for APICS • Former FVTC Faculty • Sustainability • Supply Chain • Applied Engineering • APPVION • IT, Logistics, Supply Chain Planning • Kimberly-Clark • Logistics, Supply Chain Planning, Operations, Warehousing
- 3. Discussion Overview • Supply Chain Management Challenges • “Amazon Effect” • SCOR® Model • Sustainable Procurement • Responsible Supply Chain Management Examples • Q&A
- 4. Top Supply Chain Challenges 2016 1. Hiring and retaining a skilled workforce 2. Customer demands for faster response times 3. Customer demands for lowered delivered cost 4. Rising customer service expectations 5. Increasing volatility of demand 6. Customer demands for more customized products and services 7. Increasing number of products 8. Increasing volatility of supply, including supply chain disruptions 9. Customer demands for smaller, more frequent deliveries 10.Customer demands for more supply chain transparency/sustainability Source Deloitte: http://www.healthcarefinancenews.com/slideshow/mhi-and-deloitte- identify-top-10-supply-chain-challenges-2016-see-list?p=0
- 5. “AMAZON Effect” • What is “The Amazon Effect”? • How many of the challenges can be linked to it? • What is Amazon’s CEO Jeff Bezos background? • Name one business that is not impacted by it?
- 7. What is the SCOR® Model? • The product of a global non-profit consortium (SCC) • A framework that links business processes, metrics, best practices and technology • Describes the all the business activities that satisfies a customer’s demand • Is organized around the primary management processes: plan source, make, deliver, return, enable • Can be used to describe simple or complex supply chains using a common set of definitions (such as value stream mapping) • Applies to diverse industries • A benchmarking & diagnostic tool
- 9. SCOR® Performance Attributes • Reliability: Ability to perform tasks as required • Responsiveness: The speed at which tasks are performed • Agility: The ability to respond to marketplace changes to gain or maintain a competitive advantage • Cost: The cost of operating a supply chain • Asset Management Efficiency: The ability of the supply chain to efficiently use assets
- 10. SCOR® Metrics
- 11. APICS Certification Coverage of SCOR® Processes • Develop operations plans • Resource management • Balancing requirements • Gap analysis/planning Plan • Inbound logistics • Receiving •Supplier payment Source • Create product/service • MTO/MTS/ETO Make • Order management • Transportation • Pick/Pack/Ship Deliver • Reverse flow of goods activities • Disposition/Scheduling Return Operations Manager CSCP CPIM CLTD Enable SC Management: Business rules / performance / data / risk / contracts / regulatory / resource
- 12. GreenSCOR® Can be used as a framework for environmental accounting • Carbon Emissions • Air Pollutant Emissions • Liquid Waste Generated • Solid Waste Generated • % of Recycled Waste • What other eco-efficiency measures need to be considered?
- 13. What is Sustainable Procurement? The process of acquiring goods and services that: •Meets the user’s need •Delivers long term value for money •Maximizes social and economic benefits •Minimizes damage to the environment and health Source: http://www.forumforthefuture.org/sites/default/files/project/downloads/buying-better-world.pdf
- 14. Sustainable Procurement is Powerful • Purchasing is the gateway into your organization • Setting guidelines and criteria transfers control over sustainable performance to your organization • Drives marketplace toward adopting sustainable practices for long- term improvement • Purchasing dollars = power!
- 15. 3rd Party Certifications • Green Seal • Fair Trade • Forest Stewardship Council • ENERGY STAR • LEED • Rainforest Alliance • WaterSense • Cradle to Cradle • Council for Responsible Sports
- 17. Tiffany’s and Conflict Free
- 20. Same Container through Entire Supply Chain • Egg Farms • Distribution Centers • Retailers • Closed-loop system: a system that accounts for the return flow of products for reuse, asset recovery, or recycling in a way that is cost-effective and maximizes returns. APICS Dictionary, 15th edition
- 21. Sustainable Event Management Service example: • New North Summit 2015 • ISO 20121 • 99.5% waste diversion from landfill • 100% event spend with local businesses • World-class performance
- 23. • Planning & Communications • Procurement • Access & Equity • Community Legacy • Resource Mgt • Waste • Water • Energy & Carbon Certification Credit Categories
- 24. • What is responsible supply chain management? • What are the challenges your organization faces with it’s supply chain? • What do you need to do to combat the “Amazon Effect”? • Does your organization use some type of supply chain model? • Does your organization practice sustainable procurement? Contact Information: • Joanne Gorski, SCOR-P, CFPIM, CSCP, President, Sustainable Insights LLC • Joanne.Gorski@sustainableinsightsllc.com • 920-636-6721 Closing Questions