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Sustainable Sourcing:Leveraging Your Supply Chain for Competitive Advantage
Brought to you by and DuPont Sustainable Solutions
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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
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 [email protected]
@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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• 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.
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