Professional Documents
Culture Documents
April 5, 2005
PAG E 2
2005 LMI
PAG E 3
2005 LMI
Plan
Source
S1 Source Stocked Products
P4 Plan Deliver
P3 Plan Make
Make
M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
Deliver
D1 Deliver Stocked Products
Return
Deliver
Return
Source
Environmental
Management
P5 Plan Returns
Custom ers
Suppliers
P2 Plan Source
Enable
Supply Chain
Management
Green
GreenSCM
SCM recognizes
recognizesthe
the
disproportionate
disproportionateenvironmental
environmental
impact
impactof
ofsupply
supplychain
chainprocesses
processes
in
inan
anorganization.
organization.
PAG E 4
2005 LMI
Contents
Summary
PAG E 5
2005 LMI
Tangible Outcomes
Green
GreenSupply
Supply
Chain
ChainPrograms
Programs
Profitability
Profitability
Asset
Asset Utilization
Utilization
Service
Service Level
Level
Supply
SupplyChain
Chain
Value
Value
Employee
Employee
Satisfaction
Satisfaction
Stakeholder
Interests
Environmental
Environmental
Sustainability
Sustainability
Community
Community
Quality
Quality of
of Life
Life
Customer
Customer
Reputation
Reputation
Continuity
Continuity
Alliances
Alliances
Technology
Technology
Commonwealth
Commonwealth Edison:
Edison: Produced
Produced
$50
$50 million
million in
in financial
financial benefits
benefits
from
from managing
managing materials
materials and
and
equipment
equipment with
with aa life-cycle
life-cycle
management
management approach.
approach.
Pepsi-Cola:
Pepsi-Cola: Saved
Saved $44
$44 million
million by
by
switching
switching from
from corrugated
corrugated to
to
reusable
reusable plastic
plastic shipping
shipping
containers
containers for
for one
one liter
liter and
and 2020ounce
ounce bottles,
bottles, conserving
conserving 196
196
million
million pounds
pounds of
of corrugated
corrugated
material.
material.
Dow
Dow Corning:
Corning: Saved
Saved $2.3
$2.3 million
million
by
by using
using reconditioned
reconditioned steel
steel drums
drums
in
in 1995.
1995. Also
Also conserved
conserved 7.8
7.8
million
million pounds
pounds of
of steel.
steel.
PAG E 7
2005 LMI
Source: The Triple-A Supply Chain, Lee, Harvard Business Review, October 2004
Environmental Supply Chain Management, Carter and Narasimhan, CAPS
Research, 1998
2005 LMI
PAG E 8
Contents
Summary
PAG E 9
2005 LMI
Concept
Design
Raw
Retail/
Transport
Manufacture
Transport
Material
Consumer Transport Disposal
Extraction
Use
P A G E 10
2005 LMI
Inputs
Stage
Concept
Design
Water
Water
Energy
Energy
Raw
Retail/
Transport
Manufacture
Transport
Material
Consumer Transport Disposal
Extraction
Use
Air
Impacts
Water
Waste
Air
Air
Water
Waste
Air
Air
Air
Water
Air
Waste
P A G E 11
2005 LMI
Water
Waste
Supplier
Supplier
Manufacturer
Manufacturer encourages
suppliers to adopt green
practices, environmental
management systems, etc.
Supplier
P A G E 12
2005 LMI
Raise Productivity
Minimize Risk
Enhance Relations
Maintain Health
Support Innovation
Enable Growth
Traditional
Cost
Avoidance
Emerging
Value
Creation
Long
Term
Strategic
Source Reduction
Recycle/Reuse
Control
Technology
Short
Term
Disposal
Tactical
The
ThePollution
Pollution
Prevention
Prevention
Hierarchy
Hierarchygauges
gauges
the
thevalue
valueof
of
environmental
environmental
programs.
programs.
Contents
Summary
P A G E 15
2005 LMI
Align
Align green
green supply
supply chain
chain goals
goals with
with
business
business goals
goals
Evaluate
Evaluate the
the supply
supply chain
chain as
as aa single
single
life
life cycle
cycle system
system
Use
Use green
green supply
supply chain
chain analysis
analysis as
as aa
catalyst
catalyst for
for innovation
innovation
Focus
Focus on
on source
source reduction
reduction to
to reduce
reduce
waste
waste
P A G E 16
2005 LMI
Product Differentiation?
Managing Competitors?
Cost Reduction?
Risk Management?
Redefining Markets?
Source: Bringing the Environment Down to Earth, Reinhardt, HBR, July-August 1999
Environmental Supply Chain Management, Carter and Narasimhan, CAPS
Research, 1998
2005 LMI
P A G E 17
Inputs
Raw Material
Energy
Stage
Concept
Outputs
Design
Raw
Retail/
Transport
Manufacture
Transport
Material
Consumer Transport Disposal
Extraction
Use
Product
Maximize
Maximize the
the
good
good outputs.
outputs.
Waste
Minimize
Minimize the
the
bad
bad inputs
inputs
and
and outputs.
outputs.
P A G E 18
2005 LMI
Measure or
identify the
opportunity
cost of the
waste
Create
innovation vs.
treatment bias
toward waste
reduction
Source: Green and Competitive, Proter and van der Linfde, HBR, Sept.-Oct. 1995
Environmental Supply Chain Management, Carter and Narasimhan, CAPS
Research, 1998
2005 LMI
P A G E 19
Concept
Design
Reduce
Raw
Retail/
Transport
Manufacture
Transport
Material
Consumer Transport Disposal
Extraction
Use
Reuse/Recycle
Control
Technology
Dispose
High
Potential for life
cycle cost savings
Cumulative life
cycle costs
Low
P A G E 20
2005 LMI
Domestic
Fuel Storage
Transportation
Into Theater
Transportation
Within Theater
Theater
Fuel Storage
Hybrid HMMWV
Theater Fuel
Distribution
P A G E 21
Direct
Mailer
Post
Office
Recycle
undeliverable
mail
Sorting
Facility
Target mailings
to generate less
waste
Post
Office
Customer
Waste
Problem: Excessive
direct mail waste
and cost
Target recycled
Undeliverable
content and
Items
recyclable
Estimated savings
savings (USPS)
(USPS) == $500
$500 Million
Million (1997)
(1997)
materials Estimated
Source: Greening the Mail, 1999, LMI
P A G E 22
2005 LMI
Netherlands produces 65% of the worlds cut flowers, yet has limited
land.
Mass cultivation in a confined area resulted in
fertilizer, herbicide, and pesticide contamination.
Producers were able to increase output per space and further innovate to
reduce costs (e.g., new harvesting methods).
Source: Green and Competitive, Porter and van der Linde, HBR, Sept.-Oct. 1995
P A G E 23
2005 LMI
70-90%
70-90%(by
(byweight)
weight)
of
ofmachines
machines reused
reused
144
144million
millionpounds
pounds
diverted
divertedfrom
from landfills
landfills
(2003)
(2003)
P A G E 24
Contents
Summary
P A G E 25
2005 LMI
2005 LMI
Environmental
Management
Managing the
environmental
impacts of
operations,
including
compliance,
emissions, and
remediation
Supply Chain
Management
GreenSCOR Model
P A G E 28
2005 LMI
Source
P3 Plan Make
P4 Plan Deliver
Make
M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
Enable
SCOR Model
Plan
Source
S1 Source Stocked Products
P3 Plan Make
P4 Plan Deliver
Make
M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
P5 Plan Returns
Deliver
D1 Deliver Stocked Products
Return
Deliver
Return
Source
Custom ers
P2 Plan Source
Suppliers
GreenSCOR modifies
the existing SCOR
structure to include
environmental
processes, metrics,
and best practices.
Deliver
D1 Deliver Stocked Products
Return
Deliver
Return
Source
Environmental
Management
P5 Plan Returns
Custom ers
Suppliers
P2 Plan Source
GreenSCOR maintains
the integrity of the
current SCOR model
by adding to the
existing elements.
Enable
GreenSCOR Model
P A G E 29
2005 LMI
Contents
Summary
P A G E 30
2005 LMI
P A G E 31
2005 LMI
Taylor Wilkerson
twilkerson@lmi.org
ACQUISITION FACILITIES & ASSET MANAGEMENT FINANCIAL MANAGEMENT
INFORMATION & TECHNOLOGY LOGISTICS ORGANIZATIONS & HUMAN CAPITAL
P A G E 32
2005 LMI