2. SUPPLY CHAIN MANAGEMENT
• Supply Chain
• Supply Chain Management
• Green Supply Chain Management
“Integrating environment thinking into supply chain management, including product
design, material sourcing and selection, manufacturing processes, delivery of the final
product to the consumers, and end-of-life management of the product after its useful life".
• GSCM = Green purchasing + Green manufacturing/materials management + Green Distribution /
marketing + Reverse logistics.
3. JOHNSON & JOHNSON
• American multinational founded in 1886 by Johnson brothers.
• Medical devices, pharmaceutical and consumer packaged goods manufacturer.
• 250 subsidiary companies with operations in over 57 countries and products sold in
over 175 countries
• The company operates is three broad divisions; Consumer Healthcare, Medical
Devices and Pharmaceuticals.
• Values
4. GREEN SUPPLY CHAIN
MANAGEMENT AT JOHNSON &
JOHNSON
• Earthwards Campaign by Johnson and Johnson
• This step was taken by the company to double down the environmental, health and social
impacts which were caused by the company in the processes of supply chain
management.
• Framework with various standards
• Product Innovation
• Some of the products receiving Earthwards recognition
• Band Aid : Bandages
• TruMatch : Knee System
• Neutrogena : Towelettes
6. RESEARCH AND DEVELOPMENT
BY J&J
• Objective : Sustainable product development
• Sustainable Goals
• Energy Reduction
• Waste Reduction
• Community and Human Rights Investment s
• Workforce Injury/ Illness Reduction
• Workforce Wellness
• Water Use Reduction
• Business Segments
• Pharmaceutical
• Medical Devices
• Consumer
7. R&D ACROSS BUSINESS
SEGMENTS
• Pharmaceutical
• Eco-Cooler
• Green Chemistry and Green Technology
• Medical Devices
• Product Recycling and development
• Consumer
• Palm Oil
• Global Aquatic Ingredient Assessment
9. DESIGN AND PACKAGING
Objective:
o to optimize the packaging needed to deliver the product
o to increase the use of more sustainable packaging materials
o to design for the next life
10. DESIGN AND PACKAGING
Standardized packaging solution
o increased use of sustainably sourced paper
o increased post-consumer recycled (PCR) content for paper
o elimination of polyvinyl chloride (PVC)
o Reduced packaging size and weight
• Primarily focused on
o PVC elimination
o recycling of product packaging
11. DESIGN & PACKAGING
• As a producer of thousand goods, the use of paper and paper-based packaging is relevant to Johnson
& Johnson
• They addressed this in terms of three basic objectives
• To optimize the packaging needed to deliver the product
• To increase the use of more sustainable packaging materials
• To design for the next life (e.g. recyclability, recovery, and reuse)
12. DESIGN & PACKAGING
• They used their ES&H standards for sustainable packaging improvements such as
• Increased use of sustainably sourced paper
• Increased post-consumer recycled (PCR) content for paper
• Elimination of polyvinyl chloride (PVC)
• Reduced packaging size and weight
• Primarily focused on PVC elimination & encouraging recycling of product packaging
13. SOURCE- INGREDIENTS
• Decision to reduce preservatives & chemicals from their products
• Setting safety & care commitment guidelines for suppliers
• Some of the guidelines included:
• Conduct ingredient safety assessment
• Partner only with suppliers who meet our ingredient safety standards and product stewardship principles to source our raw
materials
• Conduct clinical evaluation of formulations
Reformulations Baby care products Adult care products
formaldehyde releasers removed completely
used only for a few
products
1,4 dioxane removed completely
reduced to 10 parts per
million
Parabens removed completely
phased out except for
methyl and ethyl
parabens in formula
Triclosan Not permitted
removed from all
products
materials in fragrance removed completely process ongoing
14. SOURCING - SUPPLIERS
• Launched a Procurement Sustainability Initiative(PSI) to tackle this issue.
• Suppliers segregated into 14 broad categories and according to their importance
into a further 3 categories.
• Assessed on the basis of their EH&S risk i.e. audited
• Some of the other activities included: working with suppliers, assist in developing
with a time bound plan, communicating collecting and confirming data
15. MAKE
Management Systems & Standards
• All manufacturing & R&D to have ISO 14001 certification
• 95% of J&J sites are 140001 certified
Water
• Uses methodology developed by WRI to predict water-stressed areas
in 2025
• Have managed to reduce water consumption by 2.3% since 2010
Greenhouse Gas Emissions
• Energy use has decreased nearly 5% in 2104
Green Buildings
• 25 LEED-certified buildings
74%
23%
1% 2%
Water Discharge
Waste Water Treatment Plants
Surface Water Bodies
Oceans
Other
16. 2% 2% 3%
16%
38%
39%
% of Total Clean
Energy
Fuel Cell Bio Mass
Geothermal Wind
Congregation Solar PV
• Waste Management
• Goal is to achieve 10% reduction in waste with 2010 baseline
•
• Ozone Depleting Substances (ODS)
• Eliminated CFCs
• plan to eliminate the use of HCFCs by the end of 2025 or earlier
17. • Air Emissions
• Focus is on greenhouse gas emission sources including NOX, SOX,VOCs,
HAPs, PM
• CO2 Emissions
• $40 million annual budget for energy & greenhouse gas reduction projects
• In the last 10 years, 187 energy reduction projects have been approved, 151
have been completed
• Reduce CO2 emissions by 213, 931 metric tons per year
MARKET
18. BENEFITS OF GREENING THE
SUPPLY CHAIN
• Other benefits:-
• Product Differentiation and Competitive Advantage
• Improved quality and products
