The document discusses the importance of supply chain sustainability and green initiatives. It provides examples of how large companies like GE have benefited financially from focusing on sustainability. Research indicates that sustainability-focused companies outperform peers and see advantages in supplier selection. The document urges companies to consider the environmental impact of their entire supply chain and how optimizing areas like transportation and paper usage can provide benefits while reducing environmental footprint. It promotes attending an upcoming forum to learn more about assessing and improving supply chain sustainability.

1. Putting the Green Supply Chain in
Context
Presented by:
Bryan Scott Larkin, Chief Supply Chain Strategist, Digital
Management
Steve Keifer, VP of Industry and Product Marketing, GXS
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2. Agenda
Even in a bad economy, sustainability is real
The bigger you are…the harder you fall for
sustainability
You can make a difference
Why you should come to the Forum!
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3. COP 15 This Week
Key Topics of Discussion
• Goals for Carbon Emissions
by Country
• Will the US cut emissions
by 83% by 2050?
• Will China and India cut
aggressively?
• How to Finance the Programs
• Rich countries subsidize
the poor
• Cap & Trade
• New Taxes on Shippers
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4. Supply Chain Sustainability:
The Opportunity
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5. “Green is Green”:
Lessons from GE
• CEO of General Electric Jeffrey Immelt
• “Green is green”
• “There’s a lot of money to be made here”
• “It doesn’t make me afraid or scared. There’s
a tidal wave coming, and you either get ahead
of it or you get crushed.”
• GE makes money and improves the environment
at the same time by developing new technology
• Ecoimagination far surpassed GE’s goals
• GE thought it would cost $100 million to
reduce its carbon footprint, but instead the
company saved $100 million in energy costs
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6. Doing Good Is Good For You
• University of Nevada, Reno
• Center for Logistics Management
• Sustainable Supply Chain Project
• Research into Supply Chain Sustainability
• Focus on companies with operations in developing countries
• Findings
• Sustainability focused companies outperform their peers
• Firms that engage strongly in sustainable supplier selection
realize various advantages over their competitors
• This also holds true for social and environmental efforts in
supplier monitoring…
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7. Sustainability:
Green and Dollars Hand in Hand
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8. Your Supply Chain,
Not Just You
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9. Environmental Sustainability Provides
Competitive Advantages
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10. 10
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11. Demand Planning
Physical Supply Chain
Smarter for Your Business and the Environment
Customer Vendor Late Stage Collaborative Build to
Inventory
Self- Managed Configuration & Demand Order
Consignment
Configure Inventory Postponement Planning (or Configure)
Brand Contract Component
Customer Retailer Distributor
Owner Manufacturer Supplier
Quotes & Point of Trade
Sales Sale Inventory Sales New Product
Promotions
Activity Transactions Positions Forecasts Introductions
Schedule
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Information Supply Chain
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12. Green Sourcing
Smarter for Your Business and the Environment
Sourcing & Packaging & Usage &
Manufacturing Transportation Disposal
– Materials Composition – – Accurate Weights – – Recyclable – Whole
Lead, Mercury, Pallet Level Product or
Cadmium Components
– Packaging or Product
– Manufacturing Process made from Recycled – Recycling Instructions
uses Renewable Energy Content Well Understood and
Sources process is Practical
– Packaging
– Paints, coatings, plastics Configurations & – Energy Usage – On,
containing SCCPs Dimensions – SKU, Off and Standby Mode
Case, Pallet
– Useful Life Expectancy
– Upgradable, Easily
Repaired
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13. Optimizing Transportation
Smarter for Your Business and the Environment
Air Ocean Ground Rail
Freight Freight (LTL, TL) Freight
Transportation Management System
Transportation Network Modeling
Lane Optimization & Consolidation
Tracking of Shipment, Order, Inventory
Total Landed Cost Analysis
Carrier Scorecards & Performance
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14. Traditional Invoice & Payment
Challenging for your Business and the Environment
Invoice Process
Input to
Print Mail Accounting Validate & Approve
Invoice Invoice System Match Payment
Payment Process
Funds Check Lockbox Mail Print
Transfer Clearing Processing Check Check
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15. Congrats to Schneider Electric
• AMD Corporation • Ivalua Inc.
• ATC Logistics & • JIT Reshippables,
Electronics Inc.
• CaseStack, Inc. • ModusLink Global
• Cass Information Solutions
Systems, Inc. • Optiant
• Conexant Systems, • Ryder
Inc. • Schneider Electric
• Container and Pooling • SciQuest, Inc.
Solutions (CAPS) • SigmaQuest
• Con-way Inc. • SmartTurn
• D.W. Morgan Company • Strive Logistics, LLC
• DSC Logistics • SYSPRO
• Flash Global Logistics • The Evans Network
• Global4PL of Companies
• Hewlett-Packard • Total Logistic Control
Company • Transplace
• HIS • Transzap, Inc.
• INSIGHT, Inc. • UPS
• Integration Point • Williams-Sonoma
• Interface, Inc
http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and-Demand-Chain-Executive-Announces-Its-2009-Green-
Supply-Chain-Awards/60$11835
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16. Case Studies
Sporting Consumer Animal
Equipment Packaged Medicines &
Manufacturer Goods Brand Vaccines
Saved equivalent of Prevented Eliminated 17 Tons
22,200 gallons of consumption of of Paper from
wastewater 1,100 Million BTUs Supply Chain
of energy
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17. Governmental Regulations
and Customer Requirements
Environmental health and safety (EH&S)
– Global regulations spanning employment, hazard “This is only the beginning,
materials, food safety, building materials, etc. there is similar legislation
(to RoHS) pending in
The European Union is generally ahead of the China. The challenge for
U.S. in restricting toxic substances in the electronics industry is
electronic products*: not just compliance with
– Waste Electrical and Electronic Equipment RoHS: It’s also about
(WEEE) managing the
environmental impact of
– Restriction of Hazardous Substances our products.**”
(RoHS) Directive
Paul Tallentire, President,
US has new 10+2 requirements for Newark InOne
inbound shipments
* Eric Karofsky and Simon Jacobson, AMR Research, 2005
**EDNAsia, June 2005 The "greening" of the supply chain
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18. By removing the paper from supply chain
transactions, we could eliminate…
2.3 billion pounds of CO2, the equivalent of
taking 206,672 cars off the road for a year or
reducing gasoline consumption by 434 million
gallons or 8.9 million barrels of oil
1,386,667 tons of wood, the equivalent of 9.6
million trees
15.3 million BTUs of total energy
consumption, the equivalent of about 168,633
homes/year
7.6 billion gallons of wastewater, the
equivalent of about 11,553 swimming pools
911 million pounds of solid waste, the
equivalent of about 32,548 garbage trucks.
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19. Green Business is Good Business
Mitigate business risks
Reduce costs
Improve performance
Motivate better performing suppliers
Preserve business continuity
Enhance market access
Strategic importance
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20. When you come to the Forum…
o Bring your total number of business
documents shared per year
• Paper based
• Electronic
o We’ll provide a quick Supply Chain
Sustainability Assessment, including
a certificate you can share with your
corporate sustainability leaders, and
we’ll let you know things you can do
to help improve your business’
carbon footprint!
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21. Join us!
To learn more about this year’s
Hardlines Technology Forum,
visit our website at ahma.org/HTF
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