Sustainable Sourcing: Leveraging Your Supply Chain for Competitive Advantage
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This document summarizes a webinar on leveraging supply chains for competitive advantage through sustainable sourcing. It introduces the panel of experts and discusses how assessing sustainability measures alongside traditional business metrics can multiply impact and reduce risk. Frameworks are important for sustainable results and supply chain capability directly affects sustainability performance and business success.
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Sustainable Sourcing: Leveraging Your Supply Chain for Competitive Advantage
- 2. Sustainable Sourcing: Leveraging Your Supply Chain for Competitive Advantage Brought to you by and DuPont Sustainable Solutions
- 3. About this Webinar Submit your questions in the GotoWebinar window Follow along and share your thoughts on Twitter at #SBFLive How you can Share
- 4. About the Panel #SBFLive Taylor Wilkerson is the Program Manager for LMI’s Research Institute, having been with LMI since 2001 as a consultant in the Supply Chain Management program. Prior to LMI, Taylor spent 6 years as an environmental engineering consultant. Nicole Sherwin is a Senior Corporate Social Responsibility Analyst for EcoVadis, a sustainable procurement platform, where she has led research on Conflict Minerals, Supplier Diversity, and Green IT. She holds In an MBA in Sustainable Management from Presidio Graduate School. William Newman is Managing Principal for the Newport Consulting Group, bringing over 25 years of experience in strategy and IT planning across multiple industry sectors. Bill is a trained SA-8000 social accountability consultant since 1999 and Social Fingerprint coach and trainer since 2011. Peter Murray , CIRM, is Supply Chain Development and Innovation Leader at DuPont, where his role is to take on whatever is new, different or difficult in a very broad definition of supply chain management. Peter's focus areas include biofuels, resiliant and green supply chains, integrated business management, and SCOR and GreenSCOR models. Marc Gunther is a veteran journalist, speaker, writer and consultant whose focus is business and sustainability. Marc is a contributing editor at FORTUNE magazine, a senior writer at Greenbiz.com, and a lead blogger at TheSustainableBusinessForum.com.
- 5. SUSTAINABLE Supply Chains Supply Chain Capability Competitive Advantage Supply Chain Visibility Sense & Respond Supply Chain Risk Management Sustainable Supply Chain Visibility Predictability Resilience Sustainability Used by permission from Douglas Kent Eknowtion
- 6. Image from the UN Practical Guide To Supply Chain Sustainability – DuPont is a member company
- 7. Supply Chain Capability Business Innovation & Long Term Success Risk Management & Cost Avoidance Challenge to Sustain Performance RISK Sustainability Strategy Opportunity Right to operate and performance reliability
- 8. SOURCE – Traditional Purchase Costing + The Unknown
- 9. Sustainable Supply Chains - Takeaways Utilize assessment methods that combine “traditional” business and supply chain measures with “sustainability” measures. Leveraging your supply base multiplies your impact and reduces your risk Getting your internal supply chains in order will increase the opportunity for success with your supply base Frameworks and standard methods are important for sustainable results Supply Chain capability directly affects sustainability performance and ultimately how sustainable your supply chains are - will drive how successful your business will be
- 10. ADDITIONAL REFERENCE MATERIAL Thank you [email_address]
- 12. DuPont Success Stories Strategy Framework Please contact us to learn more about specific projects and programs
- 13. This document is confidential and is intended solely for the use and information of the client to whom it is addressed. eBook Preview: Leveraging ERP for a Greener Supply Chain William Newman, MBA, CMC, SA Newport Consulting Group January 25, 2012 Newport Consulting Group, LLC
- 14. A Brief Introduction … William D. Newman, CMC, MBA, SA ASUG Recognized Influencer EPM, GRC, Sustainability Member, SAP Sustainability Executive Advisory Council Certified Management Consultant (since 1995) Over 25 years in industry, professional services Public Speaker (ASUG, SAP Insider, TEDx) Adjunct faculty, Northwood University SAP Press Author (Understanding SAP BOBJ EPM) Numerous articles on program oversight, stakeholder engagement, mobility, strategy, sustainable supply chain Twitter (@william_newman ) Newport Consulting Group, LLC
- 15. A Primer on Supply Chain and the “New ERP” / 1 Newport Consulting Group, LLC
- 16. A Primer on Supply Chain and the “New ERP” / 2 Internal Processes – cash based Order to Cash (O2C) Internal Processes – materiel based In-bound Materiel Flow Warehouse Management Packaging Stock Transfers External Processes – cash based Procure to Pay (P2P) External Processes – materiel based Freight Forwarding / Shipping Distribution and handling Out-bound Logistics and Distribution Key Core Processes Information used to support cash and materiel based processes internally and externally Information required to make decisions on how to deploy TBL approaches to supply chain Key Point: By managing these processes already you likely have much of the information needed to “green” your supply chain Newport Consulting Group, LLC
- 17. One Example: OakGreen Initiative A number of initiatives based on TBL for residence, communities (CTVs), and Businesses. Initiated a pilot study of three contiguous cities for broad bio-diversity and land-use planning. Leverages both County ERP purchasing / vendor sources and large stores of Geographic Information Systems (GIS) data to help map land-use to area plot and what providers can be used for specific public initiatives in each locality. Newport Consulting Group, LLC
- 18. Another Example: SAP Sustainable Business Network Software company SAP has developed a sustainable business network for supplier management analysis. Leverages: Value chain membership Member questionnaire responses Purchasing histories per member (planned) Location in-flows / out-flows (planned) Library of existing best practices (data instruments, business improvement programs) Other information (as potentially modified) Solution is in limited ramp-up available to SAP customers and used internally. Info video (You Tube) http:// youtu.be/crTeFxIpBcE Newport Consulting Group, LLC
- 19. Current Situation Social Audits Environmental Questionnaires CO2? CSR Surveys Ethical Surveys SA8000? CSR Rating? REACH Audit / Questionnaire fatigue No personalized feedback No focus on improvements Suppliers High costs No reliable data No internal adoption Buyers
- 20. Supplier CSR Performance - Distribution of Global Scores Source: Statistics calculated in November 2011 on a sample of more than 5300 assessments by EcoVadis High Risk Medium Risk Under Control Medium Opportunity High Opportunity
- 21. The Cooler Supply Chain Integrating Sustainability with Supply Chain Operations Taylor Wilkerson [email_address] @LMI_org @THWilkerson facebook.com/lmi.org
- 22. Supply chain is where sustainability happens Business has migrated from vertical integration to multi-player supply chain. Result: sustainability is a multi-player issue Supply chain processes drive sustainability Forecasting, planning, resourcing Source selection, procurement Material handling Production Distribution Transportation Returns
- 24. Address the end-to-end supply chain The biggest benefit may be far upstream or even downstream Screen for impacts, focus on big wins
- 25. Have a plan Effective action requires deliberate planning Structured process ensures action Continuous process, continuous improvement
- 26. Take the right action The best action depends on capability and need
- 27. Start small, think big Start with a plan Don’t try to do it all at first; start with a limited scope (e.g., GHG from top 10% tier 1 suppliers) Learn as you go, scale as you go More sustainability elements More suppliers and tiers Fit the action to the situation
- 28. Thanks for Joining Us This webinar will be available on-demand at www.SustainableBusinessForum.com. Stop by to learn more and share your comments. You will receive an email containing the download link for the “Sustainable Sourcing” eBook from the Sustainable Business Forum as well as a link to this recording within 2-3 days. Connect with our panelists on Sustainable Business Forum using the search function:
Editor's Notes
- #6: Lets take a moment and define sustainable supply chains and talk about the relationship between supply chain capability and sustainability performance.