Sustainable Sourcing: Leveraging Your Supply Chain for Competitive Advantage

Sustainable Sourcing:Leveraging Your Supply Chain for Competitive Advantage

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About the Panel

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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.

SUSTAINABLE Supply ChainsS

uppl

y C

hain

Cap

abili

ty

Competitive Advantage

Supply Chain Visibility

Supply Chain Visibility

Sense & RespondSense & Respond

Supply Chain Risk

Management

Supply Chain Risk

Management

SustainableSupply ChainSustainable

Supply ChainVisibility

Predictability

Resilience

Sustainability

Used by permission from Douglas Kent Eknowtion

Image from the UN Practical Guide To Supply Chain Sustainability – DuPont is a member company

Sup

ply

Cha

in

C

apab

ility

Business Innovation & Long Term Success

Risk Management & Cost Avoidance

Challenge to Sustain Performance

RISK Sustainability Strategy Opportunity

Right to operate and performance reliability

SOURCE – Traditional Purchase Costing + The Unknown

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

ADDITIONAL REFERENCE MATERIAL

Thank youPeter.w.murray@usa.dupont.com

DuPont Success Stories

Strategy Framework

Please contact us to learn more about specific projects and programs

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 ChainWilliam Newman, MBA, CMC, SA

Newport Consulting Group

January 25, 2012Newport Consulting Group, LLC

Sustainable Sourcing: Leveraging Your Supply Chain for Competitive Advantage

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

A Primer on Supply Chain and the “New ERP” / 1

Newport Consulting Group, LLC

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

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 ProcessesKey Core ProcessesKey Core ProcessesKey Core ProcessesInformation used to support cash and materiel based processes internally and externally

Information required to make decisions on howto deploy TBL approaches to supply chain

Key Point: By managing these processes already you likely have muchof the information needed to “green” your supply chain

Newport Consulting Group, LLC

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

Another Example: SAP Sustainable Business Network

Software company SAP has developeda sustainable business network forsupplier 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

Current Situation

Audit / Questionnaire fatigue

No personalized feedback

No focus on improvements

Suppliers High costs

No reliable data

No internal adoption

Buyers

Social

Audits

Environmental Questionnaires

CO2?

CSR

Surveys

Ethical Surveys

SA8000?

CSR Rating?

REAC

H

Supplier CSR Performance - Distribution of Global Scores

High Risk

Medium Risk

Under Control

Medium Opportunity

HighOpportunity

Source: Statistics calculated in November 2011 on a sample of more than 5300 assessments by EcoVadis

The Cooler Supply Chain

Integrating Sustainability with Supply Chain Operations

Taylor Wilkersontwilkerson@lmi.org

@LMI_org

@THWilkerson

facebook.com/lmi.org

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

Sustainability is…

Address the end-to-end supply chain

• The biggest benefit may be far upstream or even downstream

• Screen for impacts, focus on big wins

Have a plan

• Effective action requires deliberate planning

• Structured process ensures action

• Continuous process, continuous improvement

Take the right action

• The best action depends on capability and need

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

Thanks for Joining Us

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