Putting The Green Supply Chain In Context Ahma Webinar December 2009

WELCOME to the FORUM

Putting the Green Supply Chain in Context

Presented by:Bryan Scott Larkin, Chief Supply Chain Strategist, Digital

ManagementSteve Keifer, VP of Industry and Product Marketing, GXS

WELCOME to the FORUM2

Agenda

Even in a bad economy, sustainability is realThe bigger you are…the harder you fall for sustainabilityYou can make a differenceWhy you should come to the Forum!


COP 15 This Week

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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


Supply Chain Sustainability: The Opportunity


“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


Doing Good Is Good For You

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• 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…


Sustainability:Green and Dollars Hand in Hand

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Your Supply Chain,Not Just You

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Environmental Sustainability Provides Competitive Advantages

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Demand Planning

Smarter for Your Business and the Environment

Customer Retailer DistributorContract

ManufacturerComponent

Supplier

VendorManagedInventory

Build toOrder

(or Configure)

Late StageConfiguration &Postponement

InventoryConsignment

CustomerSelf-

Configure

BrandOwner

Collaborative Demand Planning

InventoryPositions

Trade Promotions Schedule

SalesForecasts

Point of Sale

Transactions

New Product Introductions

Quotes & Sales

Activity

Physical Supply Chain

Information Supply Chain


Green SourcingSmarter for Your Business and the Environment

Sourcing &Manufacturing

Packaging &Transportation

Usage &Disposal

– Accurate Weights –Pallet Level

– Packaging or Product made from Recycled Content

– Packaging Configurations & Dimensions – SKU, Case, Pallet

– Materials Composition –Lead, Mercury, Cadmium

– Manufacturing Process uses Renewable Energy Sources

– Paints, coatings, plastics containing SCCPs

– Recyclable – Whole Product or Components

– Recycling Instructions Well Understood and process is Practical

– Energy Usage – On, Off and Standby Mode

– Useful Life Expectancy – Upgradable, Easily Repaired


Optimizing TransportationSmarter for Your Business and the Environment

Transportation Management System

Air Freight

Ocean Freight

Ground(LTL, TL)

Rail Freight

Transportation Network ModelingLane Optimization & Consolidation

Tracking of Shipment, Order, InventoryTotal Landed Cost Analysis

Carrier Scorecards & Performance


Traditional Invoice & PaymentChallenging for your Business and the Environment

Invoice Process

Payment Process

PrintInvoice

MailInvoice

Input toAccounting

System

Validate &Match

ApprovePayment

FundsTransfer

CheckClearing

LockboxProcessing

MailCheck

PrintCheck


http://www.sdcexec.com/web/online/Green-Supply-Chain/Supply-and-Demand-Chain-Executive-Announces-Its-2009-Green-Supply-Chain-Awards/60$11835

• AMD Corporation• ATC Logistics &

Electronics• CaseStack, Inc.• Cass Information

Systems, Inc.• Conexant Systems,

Inc.• Container and Pooling

Solutions (CAPS)• Con-way Inc.• D.W. Morgan Company• DSC Logistics• Flash Global Logistics• Global4PL• Hewlett-Packard

Company• HIS• INSIGHT, Inc.• Integration Point• Interface, Inc

• Ivalua Inc.• JIT Reshippables,

Inc.• ModusLink Global

Solutions• Optiant• Ryder• Schneider Electric• SciQuest, Inc.• SigmaQuest• SmartTurn• Strive Logistics, LLC• SYSPRO• The Evans Network

of Companies• Total Logistic Control• Transplace• Transzap, Inc.• UPS• Williams-Sonoma

Congrats to Schneider Electric




Case Studies

Saved equivalent of 22,200 gallons of

wastewater

SportingEquipment

Manufacturer

ConsumerPackaged

Goods Brand

Animal Medicines &

Vaccines

Eliminated 17 Tons of Paper from Supply Chain

Prevented consumption of

1,100 Million BTUs of energy


“This is only the beginning, there is similar legislation (to RoHS) pending in China. The challenge for the electronics industry is not just compliance with RoHS: It’s also about managing the environmental impact of our products.**”

Paul Tallentire, President,Newark InOne

Governmental Regulationsand Customer Requirements

Environmental health and safety (EH&S) – Global regulations spanning employment, hazard

materials, food safety, building materials, etc. The European Union is generally ahead of the U.S. in restricting toxic substances in electronic products*:– Waste Electrical and Electronic Equipment

(WEEE) – Restriction of Hazardous Substances

(RoHS) Directive

US has new 10+2 requirements for inbound shipments

* Eric Karofsky and Simon Jacobson, AMR Research, 2005 **EDNAsia, June 2005 The "greening" of the supply chain

http://www.ednasia.com/article-13631-thegreeningofthesupplychain-Asia.html


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 oil1,386,667 tons of wood, the equivalent of 9.6 million trees15.3 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.


Green Business is Good Business

Mitigate business risks

Reduce costs

Improve performance

Motivate better performing suppliers

Preserve business continuity

Enhance market access

Strategic importance


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!

When you come to the Forum…


To learn more about this year’sHardlines Technology Forum,

visit our website at ahma.org/HTF

Join us!