Rutgers Greening Its Supply Chain...1998 – SC Environmental Archeology/Logistics GHG 1999 - Energy Grid, GHG-Carbon Impact 2004 – Modified Strategic Sourcing (Construction, etc.)

Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green

Greening the Supply Chain by Dr. K evin Lyons

Clean Water and Oceans Environmental Justice

Global Warming

Clean Air and Energy

Health and the Environment

International Issues

Wildlife and Fish

Sustainable Solutions!

http://www.nbp.rutgers.edu/


K. Lyons Work/Research History

1980/6 – USAF – Supply Chain/Contracting (Corporate Trends)1986 – St Peter’s Medical Center/Pharmaceutical Supply Chain1987/8 - Rutgers, NJ Recycling Act; Supply Chain Response; Supply Chain Waste Research (Archeology)1992 - US Federal Executive Orders (13101); NJ EO; Research, LCA, Waste Prevention, Recycling, Product Life Cycle Research! Rio Summit; Talloires Declaration (Colombia, Peru, Brazil, etc)

1997 – N. Ireland - SCM/Green Purchasing Program1998 – SC Environmental Archeology/Logistics GHG1999 - Energy Grid, GHG-Carbon Impact2004 – Modified Strategic Sourcing (Construction, etc.)2005 - Alternative Energy Carbon-Impact Research

Supply Chain Environmental Management - Archeology


Energy Purchased on the New Brunswick / Piscataway / Newark / Camden Campus – F/Y 2009-10 - R esour ce Data

• E lectr ic – Purchase, 292,100,000 kW h – Produce 115,000,000 kW h = 407,100,000 kW h per year

• Natur al G as – Purchased 2,988,738 dekather ms• Oil – 290,000 gallons• Water – 566,000,000 gallons• C ar bon F ootpr int – 345,197 tons C O2

E lectr ic $23,300,000.00

Natur al G as $ 35,700,000.00

Water $ 3,700,000.00

Totals $62,700,000.00

$2.5 B illion A ssets6200 A cres$550 M illion/Y r C ommodities and Ser vices

900 Buildings6200 Tons/Waste

26 Waste Commodities63% Recycling Rate

Cost Reductions 10yrs!

Software installed through networksPlaces computer into sleep modeBased on 40,000 ComputersInstallation Cost $660,000.00Annual Savings $480,000 - $800,000Annual Reoccurring Cost $80,0001 Year payback A nnual Net Savings $640,000.00

RU Data


Green Purchasing Policy

" Consumption (is it needed?) >Z er o W asteCradle-to-Cradle concepts (more than price!)Green Buildings (Design, Landscaping, Construction, Renovation)BioBase, Biodegradable, etc.Energy/Water ConservationE co-L abels; C er tificationsCorporate Social & Environmental Reporting

Changing the Mindset Inside the Campus

http: //purchasing.rutgers.edu/green/

http://purchasing.rutgers.edu/green/



Global Corporate Social and Environmental Reporting

CommunityDiversityEnvironmentEthicsFinancial ResponsibilityHuman RightsSafety

Russell Athletics:

http://www.nikebiz.com/responsibility/2009SecretaryClintonHondurasLetter.html


Kevin Lyons, Ph.D. http: //greenpurchasing.rutgers.edu

In order to be good stewards of the environment, we should buy products and services that conserve energy, water and other natural resources.

Rutgers G r een SC M /Pur chasing (1988 – Present)

Green Purchasing:minimizes negative environmental effects through the use of environmentally friendly products, practices and attributes.

is a way of adding environmental considerations to the price and performance criteria that businesses use to make purchasing decisions.

attempts to identify and reduce environmental impact as well as maximize resource efficiency.

http://solutions.3m.com/wps/portal/3M/en_WW/Worldwide/WW/

http://greenpurchasing.rutgers.edu

Why consider the environment?Purchasing with a ‘green’ mindset can:• Reduce energy and water consumption

(which can reduce costs)• Improve resource use efficiency• Reduce waste (which can reduce waste

disposal costs)• Reduce environmental health impacts of

goods and services.

Supply Chain and Purchasing

John E ngler is president and CE O of the National Association of Manufacturers (NAM), the largest industry trade group in America representing small and large manufacturers in every industrial sector and in all 50 states. A former three-term governor of Michigan, Mr. E ngler became NAM president on October 1, 2004 and was elected President of the Business Roundtable (commencing 1.15.11)

Business Roundtable is an association ofchief executive officers of leading U.S.companies with nearly $6 trillion in annualrevenues and more than 12 millionemployees. Member companies arecommitted to working with policymakers,NGOs and consumers to make theircommunities stronger and moresustainable. Enhancing Our Commitmentto a Sustainable Future explains what theyare doing to promote better business and abetter world.

Brand Equity!


Green Supply Chain-Purchasing Research

Product Development, Design, Performance, & Cost! Environment and Health Impacts – Eco-Labeling! Total Cost of Ownership! Global Warming and Climate Change ! Raw Material Data (Marketplace Availability and Eco-Impacts)! Green Products and Services Data (ePr ocur ement/Or acle)! Competitive Procurement Process and Strategic Sourcing! Green Contract Language and Evaluation Criteria! End of Life Data (W aste M anagement/R ecycling)

Annual Spend (Bottom-line Expectations)! Life Cycle Assessment/Cost! Return on Investment - ROI

Corporate and Organizational Reporting (Sox and Environmental Reporting)Multiple Academic Departments (RE I , E ngineering, Public Policy, Business, Marine, etc.)

Research Along the ‘Chain’



Raw MaterialProduct

downsizing, extensive recycling

ManufacturingEnergy conservation, conservation and recycling of raw materials, measures to prevent air, water and underground water-pollution

DistributionSimplified packaging, efficient distribution, use of low-pollution delivery vehicles

Consumer UseProducts that consume less power, reduce use of auxiliary materials (products that require less use of water, detergent and other materials)

Post Consumer UseProducts designed for easier recycling, lower amounts of environmentally harmful substances (Risk Mgt Research)

Life Cycle Assessment (LCA, NPV)ISO 14040 Criteria (research investment, risks, decisions)

L ogis tic s / Trans portation =

Reverse Logistics: Opportunity/Innovation


Product/Process Design

Raw and Virgin

Material

New Components and

Parts

Recycled, Reused Material

and Parts

V endor s

E xternalTransportation

Storage

Inventory Management

Internal Transportation, Materials Movement

F abr ication

Assembly

Closed-Loop Manufacturing,Demanufacturing,Source Reduction

Storage Distr ibution,F or war dL ogistics

USE

Purchasing, M ater ials

M anagement, I nbound L ogistics

Pr oductionOutbound L ogistics

Disposal

Waste Waste Waste

Energy Energy Energy

Energy

Location Analysis,Inventory Management,

WarehousingTransportation

Packaging

MarketingEngineering

R ever se L ogistics

Reusable,Remanufacturable,

Recyclable Materials and Components

Waste

Materials, Product and Information Flow. Forward and Reverse Logistics, Adapted From Sarkis, 2001.

Materials, Product and Information Flow. Forward and Reverse Logistics

• We will use this product as an example of an LCA to unders ta nd how des ign decis ions a ffect the env ironm enta l im pa ct of the product.

• This presentation is meant to show designers the importance of thinking about these issues while designing a new product or working on an existing one. Therefore, the general concepts and steps will be simplified.

• The important concept behind each step will be explained. It is important to understand the thinking behind these steps, even when the details of how to perform the step in a specific LCA might be unclear. Remember, the actual figures and calculations are not usually done by designers, but rather engineers. T he des igner ’s role is to be a ble to rea d the res ults of a n LC A, unders ta nd the rela tions hip between des ign decis ions a nd env ironm enta l im pa cts , a nd identify is s ues a nd opportunities . Als o, the des igner ha s to k now when a nd how to a s k for a n LC A.

OLFA Cutter

Steps Involved in LCA

• Start by identifying the materials in the product. For every material there is a set of inputs and outputs of energy and pollution. You should include the product, its packaging and every other object related to the product on an indiv idua l basis.

PP = PolypropyleneABS = Acetyl Butene Styrene

Materials

* Source: Des ign + E nv ironm ent; a globa l guide to des igning greener goods

Life-Cycle Inventory Analysis (PP)

Dec is ion G reenS M

UP S ’s approac h to environmental s us tainabilityUP S T rans port & T he E nvironment

R utgers Univers ityNew Brunswick, NJApril 2010

Dec is ion G reenS M

UP S ’s approac h to environmental s us tainability


Supply Chain Environmental Archeology; Waste Research - The Concept

History – Question (SCM is everywhere!)!Merge Supply Chain and Environmental Mgt/ISO 14001!Challenge Waste/Recycling Concepts!Challenge WMX and Industry (separate trucks)!Waste as Feedstock/Commodity!Upstream Design and Technology (Waste Prevention)!Technology Development along the SC!Methane and Waste Research!New Emerging Contract Development


Green Purchasing and Waste ResearchSupply Chain Archeology

Consumerism, Consumption and the Linking and Integrating of Solid Waste into the Supply Chain Management Process

A Supply Chain Manager’s and Purchaser’s Perspective On:

Understanding the History, Behavior, Movement and Business of Waste;

Methane!

http://vodpod.com/watch/1866241-eco-tech-zero-waste-plastic-bottles
















Waste is a Commodity!Mack Truck/Volvo



Waste is Food!

http://ecocomplex.rutgers.edu/incubator_businesses.php





Projects From Recycled Plastic Polymershttp://www.youtube.com/watch?v=0hE-ymdio44

http://www.youtube.com/watch?v=3dD3ml_t77Y&feature=related

Waste is Feedstock

Corporate Logistics and Packaging




http://www.youtube.com/watch?v=0hE-ymdio44


















A 120-ton diesel locomotive crosses newly built plastic lumber bridge at the Army's Fort Eustis installation in Newport News, Virginia.

Purchasing for the

G reener G oods

Kevin Lyons, Ph.D., Magda Comeau, Purchasing Departmenthttp: //purchasing.rutgers.edu/green

Changing the Mindset Outside the Campus

Criteria we will be considering when we procure an item will be:•The availability of the item; the potential impact of procurement on the solid waste stream•The economic and technological feasibility of producing the item; and•Other uses of the recovered materials used to produce the item. •Ethics and Socially Responsible policies and practices• Items you may want to share could include:•Company/Corporate annual report (current or prior year) highlighting current ‘green’ initiatives•Documents presenting ideas for new ‘green’ initiatives•Company/Corporate policies regarding office recycling, reducing packaging, etc.

If your company does not have a policy or initiative in place currently, we would be happy to work with you to develop a plan that fits your company’s specific needs.



30% Cost and E nergy ReductionRutgers PC-Laptop Purchasing Program

•EPEAT/ISO 14001

•Energy Star

•Environmental Mgt Plan

•Corporate Social and Environmental Reporting Criteria

•Extended Product Responsibility (Recycling On-Site)

Greening RU RFPs & Contracts



UBS

KPMG

Student Research Projects

http://www.bd.com/support/bdlogo.asp?site=&title=&country=&ctitle=

http://welcome.hp.com/country/us/en/welcome.html

eProcurement – RU eEnergy Grid System

E NE R G Y PR OC UR E M E NT I NT E L L I G E NC E , R E A L I Z E D!

Low Carbs … Zero Waste Project2011 REI Energy Innovation Contest

R utger s Univer sity Product

Carbon/Climate Impact Research;Product Labeling and Certification

Measuring carbon emissions at every step of the supply chain could lead to valuable energy and cost saving opportunities (for the General Public, Rutgers, and our Manufacturers). “Carbon F ootprinting” is a way to measure the impact human activities have on the environment, in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.

Solar Project

The University installed one of the largest ground mounted solar arrays on any one campus in the United States. The 1.4 mega Watt system provides 10% of the power to the Livingston campus. The project cost was 10 million dollars. $4,900,000 dollars of the project was funded through a BPU Core Solar rebate. Currently the University is expected to make $1.1 million for the first year on its SRECS

Kevin Lyons, Ph.D. http://purchasing.rutgers.edu/green

THE LAWRENCEVILLE SCHOOLBogotá

Projects and Initiatives

Middlesex CountyVocational and Technical Schools

GreenEconomic

DevelopmentZone

http://www.mcvts.net/index.aspx


http://www.diy.com/diy/jsp/index.jsp?1130905145136

http://www.nps.gov/archive/gate/shu/shu_themes_wayside.htm

http://www.barnesandnoble.com/index.asp

http://www.mars.com/global/Home.htm

http://www.whrhs.org/