"Starting the Sustainability Journey in Supply Chain" in the Petrochemical Supply Shain & Logistics Conference USA 2020

1. PETROCHEMICAL SUPPLY CHAIN & LOGISTICS CONFERENCE USA – JUNE 11 2020
Víctor Alonso
Supply Chain Planning Manage at SABIC
STARTING THE SUSTAINABILITY
JOURNEY IN SUPPLY CHAIN

2. -
AGENDA
SUSTAINABILITY OPPORTUNITIES IN SUPPLY CHAIN
EPA SMARTWAY PROGRAM
CASE STUDY DECENTRALIZED DISTRIBUTION NETWORK
SUMMARY

3. SUPPLY CHAIN GHG OPPORTUNITY
Source: Starting at the Source: Sustainability in Supply Chains, McKinsey & Company Source: Cascading Commitments: Driving Ambitious Action Through Supply Chain Engagement, CDP 2019

4. Source: World Economic Forum / Accenture Beyond Supply Chains Report
SUPPLY CHAIN OPPORTUNITIES SUSTAINABILITY
Strategy Opportunity Benchmark Value Proposition
Operational
Optimization
1. Increase vehicle utilization IKEA, Unilever
2. Transportation modality Bosch Siemens
3. Decentralize distribution network Bayer Healthcare
(China)
4. Reduce travel distances (Routes optimization) DHL, UPS
Green
Technologies
5. Green vehicle technologies and tires Walmart
6. Use alternative fuels UPS, Coca-cola
7. De-speeding of the supply chain Con-Way
8. Smart and Green buildings development Nike (Laakdal)
Suppliers
Relationship
9. 3PLs selection requirements Nestlé, Wal-Mart
10. Supplier auditing and control Marks&Spencer
Profitability Environment Society Implementation

5. SMARTWAY PROGRAM – US ENVIROMENTAL PROTECTION AGENCY
EPA’s SmartWay program helps companies advance
supply chain sustainability by measuring,
benchmarking, and improving freight transportation
efficiency

6. SUSTAINABILITY CASE STUDY – DISTRIBUTION NETWORK OPTIMIZATION
PROJECT OBJECTIVE NETWORK DESIGN
Optimizing WH network to improve service at minimal cost to serve
BUSINESS CASE SUSTAINABILITY CASE
Cost-to-serve
Service
Reduction KM / TNKM travelled
Optimized load per shipment
Reduction Carbon Footprint
Source: IBM ILOG DEMO for illustration purpose
Customer Mapping Existing Network Gravity Center Optimization
LTL
LTL
LTL
LTL
FTL
FTL

7. SUMMARY 1ST STEPS IN SUSTAINABILITY JOURNEY IN SUPPLY CHAIN
SC CARBON FOOT
PRINT BASELINE
ESTABLISH
COLLABORATIONS
WITH SME
ID OPPORTUNITIES PILOT SOLUTIONS
SCM
SUSTAINABILITY
STRATEGY &
AMBITION
Employee Sustainability Awareness
“Stand on the shoulders of
Giants”
“If you can´t measure it,
You can´t improve it”
“Culture eats strategy for breakfast”
“Choose your battles” “Learn by doing”
Sustainability is a Global Business imperative but also a business opportunity
“Think Big”