SUSTAINABLE SUPPLY CHAINS

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SUSTAINABLE SUPPLY CHAINS

• By Keith Robinson
• Acumen Services Ltd

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What is Sustainable Business?

• To some it is triple bottom line reporting
  economic, social and environmental.
• Put simply, it is
• future-proofing your business

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WHAT IS A SUSTAINABLE SUPPLY CHAIN?

• This is a supply chain where
• Resources are consumed in line with replenishment
  patterns
• General business decisions consider long-term
  business interruption impacts
• Total Risk and costs continue to fall over time.
• This is not JUST an environmental issue

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. AND JUST WHY DO WE WANT ONE?

• Making profits for a while isnt particularly
  difficult. The challenge is to do it
  sustain-ably.
• If we consume more resources than the total
  system can deliver to us, then other resources
  will be wasted waiting for the late ones.
  Wastage Financial loses.

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SustainabilityWhy ?

• To reduce costsenergy
• To reduce riskwaste bills, water shortages
• To reduce absenteeismless toxins, cleaner air
• To improve productivitynatural light and
  ventilation
• To increase property valuelow operating costs
• To create healthier environmentslandscaping.
• To leadstaff and students
• To Increase profits on an ongoing basis ..

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So, what is the problem?

• Humans are the only species on earth that create
  waste
• We are using the earths resources faster than
  they can be replenished
• We are creating substance that nature can not
  managecan not break down
• We are destroying the earths bio-diversity at an
  increasingly fast pace
• With 80 of the planets resources and 80 of the
  planets wealth sitting in the hands of just 20
  of the worlds populationwe are not being fair to
  all people.
• We are consuming and living way beyond the means
  of this onefinite planet.

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SCM Risk What should we think about?

• Who am I dependent on?
• Which systems are critical and which are not?
• What could take me down, and how long would the
  outage last?
• What contingencies does my business have in
  place?
• What contingencies do my suppliers have in place?
  
• - Lisa Hauser, Marsh Consulting

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Many Companies believe that it is necessary to
achieve sustainability across their supply
chains.So why isnt it happening?
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Why the lack of emphasis

• With basic environmental management processes
  achieved there is little low hanging fruit
  left.
• Consumers often do not see it as a benefit worth
  supporting and driving
• Short term focus of user, consumer, management or
  government

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So what can you do? Slide 1

• As a consumer and a professional, give emphasis
  on sustainable options.
• Create transparency across your entire supply
  chain
• Convert everything to dollars where you can..an
  example is the reaction of fast food companies to
  potential Fat Tax (you pollute you pay)
  movements !!

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So what can you do? Slide 2

• Encourage your company members through
  brain-storming sessions, project teams and
  feedback loops.
• Encourage suppliers to become more sustainable
  be a watchdog.
• Educate your customers so they see that your
  sustainability could result in fewer
  interruptions to their supply this would give
  your organisation a competitive advantage.

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So what can you do? Slide 3

• There is a world-wide shortage of skills.
• Why?
• Because we are not committed to training. We
  need to train more to ensure that the workforce
  is sustainable.

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The Process of Improvement

• Step One Map your risks/impacts
• Step Two Evaluate your organisation and your
  suppliers
• Step Three Get the right people involved
• Step Four Make SMART Plans include reporting
  processes and formats
• Step Five Take Action
• Step Six Evaluation/review progress

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Case Study One Palliser Estate

• Committed to achieving Zero Waste.
• Vineyard waste from pruning is mulched and left
  to break down between the grapevine rows. Under
  vine areas are mown rather than sprayed.
• "We are organic in style as much as possible"
  says Sharon Goldsworthy, "but we must reserve the
  right to go in with a spray if there is no other
  option and we may lose our crop. The reality is
  sometimes different from the theory.
• Other things the judges liked
• Strong community leadership
• Ongoing support of trust set up to support local
  school
• Educating staff to reduce waste
• Very successful policy in place to reduce energy
  consumption
• Seaweed fertilisers used in trial blocks
• Manuka planted to host wasps which kill
  caterpillars on vines
• Strong involvement with groups seeking to improve
  the industry
• Seek out other vineyards to form discussion
  groups

NZ Business Council for Sustainable Development
ANZ BFEA Harvest Award
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Case Study One Palliser Estate

• Palliser Estate Winery comprises 70 ha in
  Martinborough certified to ISO14001.
• Operating with a "triple bottom line" a
  collective commitment to profit, environment and
  social aspects.
• The award judges noted This commitment has led
  to the development of a wide range of policies
  that have been well thought through and carefully
  implemented."

NZ Business Council for Sustainable Development
ANZ BFEA Harvest Award
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Case Study Two The Warehouse

• As part of its commitment to Zero Waste, The
  Warehouse actively encourages waste elimination
  through its supply chain. Using its buying power
  as leverage, The Warehouse is able to influence
  its suppliers toward minimising the amount of
  material used in packaging.
• For Example Menswear Buyer Ewa Liddington
  recently initiated the redesign of packaging for
  a range of mens t-shirts, polo shirts and
  singlets. The original plastic bag and hanger
  were replaced with cardboard band wraps. This
  replacement eliminates 12 grams of plastic per
  unit. With sales of over 300 thousand garments
  this packaging change equates to a direct saving
  of around 4 tonnes of waste plastic per year.

NZ Business Council for Sustainable Development
ANZ BFEA Harvest Award
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Case Study Three Macpac

• Reduced its impact on the environment
  (Biodiversity Loss) by increasing efficiency and
  reducing greenhouse gas emissions.
• An investment programme has started in which the
  firm will invest in around 20 hectares of native
  forest restoration. In a related scheme the firm
  made interest-free loans to staff to install
  energy-saving products at home.

NZ Business Council for Sustainable Development
ANZ BFEA Harvest Award
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Case Study Four - BP

• "BP has proved that reducing greenhouse gas
  emissions can be good for a company's financial
  bottom line. Since 1997 BP internationally has
  reduced its greenhouse gases by 10 from a 1990
  base line and at the same time created US650
  million in value. Other companies can also
  achieve these results."
• PETER GRIFFITHS, CEO, BP OIL NEW ZEALAND LIMITED

NZ Business Council for Sustainable Development
ANZ BFEA Harvest Award
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So, Where are we Heading?

• Companies living/breathing the need for
  sustainable business principles.
• More links found between pollution and diseases
  maybe as many as 200 from cerebral palsy to more
  than 37 types of cancer.
• Greater government controls to manage
  sustainability driven by voters
• Shareholders demanding measures of
  sustainability in financial accounts

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On the Positive Side

• Eco-friendly actions/companies are now being
  recognised.
• The hippies of 40 years ago, now have money and
  they want clean, green and organic but with
  style.
• This is a new, emerging and potentially huge
  market !!

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Quotes to remember.

• Dick Hubbard -If you're not sustainable yourself
  how can you demand it of others.
• Ghandi - The world has enough for everyones
  needs but not for everyones greed.
• Einstein - The world will not move beyond its
  current state of crisis using the same thinking
  that got us there in the first place.