Call to Action Presentation by Dave Closs

1. Call to Action for Food and Pharmaceutical Sustainability Dr. David J. Closs John H. McConnell Chair in Business Administration Chairperson Department of Supply Chain Management Michigan State University November 12, 2009

2. Desired Outcomes Increase awareness of inter-related food and pharmaceutical sustainability challenges. For challenges identified, frame food/pharmaceutical sustainability complexities for broader understanding and dialogue. In “safe” space, begin to explore alternative paths of action for identified challenges and related complexities. Establish agenda for joint efforts to understand and resolve complexities.

3. Agenda Introductions Dimensions of sustainability Call to action for food and pharmaceutical sustainability Strategic challenges: Overview and process Strategic challenges: Group discussion Strategic challenges: Report out Linking Challenges to Themes from Food + Society MAP Review matrix relating challenges to themes Prioritize and characterize complexities Keep the call to action alive

4. Introductions Name Company and position Responsibility for sustainability

5. Call to Action for Food and Pharmaceutical Sustainability A safe and sustainable food supply is a common challenge Who’s who in the room and why? Why MSU?

6. Transportation of products between stages in the system. T Complexity In The Food Supply Chain meat & poultry dairy fish & seafood eggs ANIMAL PRODUCTION grain elevators shippers feed lots fresh products prepared products T T FARM PRODUCTASSEMBLERS FARM INPUTS MULTIPLE FARM SOURCES T END-PRODUCT PROCESSORS T T seed feed fertilizer pesticides CROP PRODUCTION T INGREDIENT PROCESSORS T T T grains oil seeds fruits vegetables milling slaughtering crushing starches flavorings STORAGE MULTIPLE FARM SOURCES T WHOLESALERS supermarkets convenience stores co-op restaurants hotels schools hospitals military bases vending farmer’s markets community feeding general home specialty products food service T RETAILERS CONSUMERS Adapted from Bruce Hope, (April 13, 2005), “Identifying Research Needs for Risk Assessment of U.S. Food Supply Security,” Society of Toxicology - Risk Assessment Specialty Section (RASS) Monthly Teleconference.

7. Environmental Sustainable

8. Environmental Ethical Sustainable

9. Environmental Ethical Sustainable Economic

10. Environmental Ethical Sustainable Education Economic

11. Dimensions of Sustainability Education Economic External Management Internal Management Employee Relations SUSTAINABILITY Usage Reduction Community Connection Business Practice Management Conservation Ethics Environment Talent Development Relationship Management

16. A Safe and Sustainable Food Supply is a Common Challenge We all have a very strong interest in food availability, cost and safety

17. A Safe and Sustainable Food Supply is a Common Challenge We all have a very strong interest in food availability, cost and safety We have a joint vested interest in making food safe and available

18. A Safe and Sustainable Food Supply is a Common Challenge We all have a very strong interest in food availability, cost and safety We have a joint vested interest in making food safe and available The food and pharmaceutical industry is in constant transition New ingredients to enhance taste, offerings, longevity, and efficacy New packaging to enhance safety and longevity New technologies to enhance tracking and point-of-sale New channel members to enhance access This combination of changes introduces continuous dynamics in the food and pharmaceutical chain As executives in this chain, we must learn to manage from one dynamic state to another

19. Taste/Health – Ice Cream Innovation in low-fat and low-sugar ice creams Low temperature extrusion technology leads to a smooth, creamy textured ice cream at lower fat levels Additives Omega-3 fatty acids (brain function) Phytosterols (anti-cancer) Probiotics (intestinal health) Vitamin D (heart health) Calcium (osteoperosis, hypertension) Uses of new ice cream Healthy snack Meal replacement Nutrition for Elderly who have difficulty swallowing

20. Safe Packaging – Blow-fill-seal Aseptic process for filling and packaging sterile pharmaceutical liquids and other health care products Replacing traditional glass vial processing Container molded from plastic, aseptically filled and hermetically sealed in one continuous, integrated, and automatic operations without human manipulation

21. New Technology – FoodLogiQ On Demand Software Trace and monitor movement of food, feed, food-producing animals or substances through all stages of production and distribution leveraging RFID, barcoding, mobile and web solutions Automate ordering and reporting of laboratory tests for surface pathogens, pesticide residues, or irrigation water conducted within your own facilities and farms Quality Management – help with certification and set up of program

22. A Safe and Sustainable Food Supply is a Common Challenge We all have a very strong interest in food availability, cost and safety We have a joint vested interest in making food safe and available The food and pharmaceutical industry is in constant transition New ingredients to enhance taste, offerings, longevity, and efficacy New packaging to enhance safety and longevity New technologies to enhance tracking and point-of-sale New channel members to enhance access This combination of changes introduces continuous dynamics in the food and pharmaceutical chain As executives in this chain, we must learn to manage from one dynamic state to another CEOs are beginning to include sustainability as a key corporate performance indicator.

23. Who’s Who in the Room and Why?

24. Who’s Who in the Room and Why? Problem solving has historically received a functional focus

25. Who’s Who in the Room and Why? Problem solving has historically received a functional focus Today’s problems and challenges require a cross-functional expertise

26. Who’s Who in the Room and Why? Problem solving has historically received a functional focus Today’s problems and challenges require a cross-functional expertise Academic expertise Agricultural production Agricultural processing Food and pharmaceutical manufacturing Engineering Packaging Communication Criminal justice and counterfeiting Supply chain management Information technology University administration

27. Who’s Who in the Room and Why? Problem solving has historically received a functional focus Today’s problems and challenges require a cross-functional expertise Academic expertise Representatives from industry Packaged food Ethical and OTC pharmaceutical Packaging

28. Who’s Who in the Room and Why? Problem solving has historically received a functional focus Today’s problems and challenges require a cross-functional expertise Academic expertise Representatives from industry We are here to share space, challenges, and insight

29. Who’s Who in the Room and Why? Problem solving has historically received a functional focus Today’s problems and challenges require a cross-functional expertise Academic expertise Representatives from industry We are here to share space, challenges, and insight We are here to work together to solve dilemmas

30. Traditional Career Path: Functional Depth Supply Chain Production Safety Packaging R&D Traditional Career Paths

31. Fostering Depth And Breadth In Skills And Work Experience Supply Chain Production Integrated Management Safety Packaging R&D Traditional Career Paths Sample Integrated Career Paths

32. Why MSU? Effective sustainability requires a cross-functional focus

33. Why MSU? Effective sustainability requires a cross-functional focus Rankings

34. Rankings Agriculture Ranked in the top 100 schools in the world by Shanghai Jiao Tong University Veterinary Medicine #9 by US News & World Report Material Science For over 35 years, held the nation’s best record for winning and placing in the American Institute of Chemical Engineers National Student Design Competition Criminal Justice - #7 by US News & World Report Supply Chain Management - #2 by AMR Research and # 1 by Supply Chain Management Review

35. Why MSU? Effective sustainability requires a cross-functional focus Rankings Universities are typically a storehouse of siloed knowledge

36. Why MSU? Effective sustainability requires a cross-functional focus Rankings Universities are typically a storehouse of siloed knowledge MSU has developed world class expertise in the disciplines required for food and pharmaceutical safety and sustainability

37. Why MSU? Effective sustainability requires a cross-functional focus Rankings Universities are typically a storehouse of siloed knowledge MSU has developed world class expertise in the disciplines required for food and pharmaceutical safety and sustainability President Simon says that environmental stewardship and sustainability "is part of our DNA at Michigan State."

38. Conclusion