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The world's cell phone users are watching as a big transition takes place: Cell networks are moving from 3G to the new 4G, and users are starting to make the transition. It won't be long until the next big development in network connectivity is announced.

But what do cell service providers do with all the old 3G equipment and technology used to provide the old 3G access? Much of it must be de-manufactured, as no one else wants the old technology.

This is just one example of the e-waste issue that is becoming a hot topic. As technological progress excels, more and more discarded e-waste is going to landfills or being shipped to developing countries. This National Geographic article is an excellent read for understanding the hazards that e-waste creates for people and for the environment.

Having worked in supply chain for many years (read “decades”), I have a keen understanding of the reverse logistics challenges that organizations face on a regular basis – especially in dealing with final disposition of products.

The 3G to 4G network change is just one example of the growing e-waste issue, as the most powerful PCs being produced right this moment will be obsolete incredibly fast. And today, cell phones themselves are changed so often that it’s almost as if they were fashion accessories.

There are already some regulations being made in response to the issue, such as states requiring retailers to accept customers' old cell phones for recycling. But the really exciting news is that technology manufacturers are also responding to the problem themselves by creating their own internal regulations to handle e-waste before any official regulations are even created.

In the United States, a number of companies take e-waste and recycle it into materials that can be re-sold, keeping the lead, mercury, arsenic and other hazardous substances out of the soil and water. However, oftentimes, companies like this are only able to operate regionally. The cost of transporting e-waste from its origin point to a sorting/processing facility is usually higher than the profits that can be gained from de-manufacturing.

These many small companies create opportunity for a business to merge with or acquire a number of these smaller operations to create something large-scale. This is just one possible business opportunity that this emerging e-waste issue could create. By moving these smaller operations to a more large-scale effort, more recycling and reusing can take place as a larger operation can solve the problem of high transportation costs.

For the most part, as we consume new technology and dump the old, we have been able to apply a “out of sight, out of mind” philosophy to the problem.

But with more rapid technological advancement (which shows no sign of slowing) the problem will continue to grow, potentially harming the environment and human health. Using innovation in business to create a response to the problem that helps make high technology sustainable will be a key factor in solving this global issue.

GoGoGo!
Jim

Resources

Greening the Supply Chain and Sustainable Business Resources

Getting the Green Light: Environmental Success Stories from the Supply Chain Consortium


Top Ten List of Issues/Opportunities Facing High-Tech Companies


Service Supply Chain

 

Photo Credit:  parityytirap


OK, it’s not exactly your father’s Oldsmobile, but we have recently discovered that companies with transportation sustainability initiatives are using many of the same old tools to gauge their success.

 

The Supply Chain Consortium’s new Transportation Sustainability Report found that a number of companies are using ROI or cost-payback analysis and life-cycle assessment – which are commonly used to measure capital expenditures – to evaluate their environmental initiatives.

 

These tried-and-true methodologies are not nearly as cutting-edge as some of the initiatives they’re measuring, so therefore they tend to be a very conservative predictor of success. Encompassing the total cost savings of a long-term sustainability initiative can be quite challenging. Consider using some new tools and keep the Oldsmobile in the garage.

 

Other green business tools used by companies we surveyed include environmental reporting and certification programs, environmental management systems, eco-mapping, and environmental accounting.

 

Overall, having sustainability initiatives within your organization is a powerful offensive strategy, whether you are measuring cost benefits, environmental benefits, or company benefits.

 

For more information on what other companies are doing and how you can improve your transportation sustainability initiative, check out the Transportation Sustainability Report. You can also listen to a recent podcast on the topic.

 

Go!Go!Go!

Jim


I cannot fully express how excited I will be to ring in the new year. And it’s not because I’m longing for champagne, confetti and a kiss as the clock strikes midnight. These are all nice things, but mostly, I am elated to finally say good riddance to 2009.

 

I would bet that most people feel exactly the same way. Let me clarify: I am ready to move out of recovery mode and really make things happen!

 

It’s time for energy, capital, sustainability efforts, people and big ideas to come together again and grow global business. As executives, one of the things we do early in the year is to challenge ourselves on how to take our business to the next level. And I don’t think this challenge has ever been more welcome than now.

 

In my view, the most essential thoughts we can take into 2010 are the "5 Rs" plus one: Reduce, Reuse, Recycle, Redesign, Re-imagine, and especially for this season, Rejoice!

 

These "6 Rs" force innovation into the life cycle of organizations, products and people and take the environmental focus to a whole new level. This is the view that I challenge you to embrace in 2010.

 

1. Reduce: Examine your company’s packaging, redundancies and areas of waste. What can be reduced without affecting customer service and quality? It could be time to streamline materials, handling or logistics. Examine reduction opportunities across the supply chain.

 

2. Reuse: Why throw it away if it can be recycled or repurposed? New products and ideas are great, sure, but creating waste where reusing would be better, this is not so great. What is your company doing with respect to reverse logistics? There could be a revenue opportunity for returned or refurbished products. Inventory will take on a whole new meaning in the next decade.

 

3. Recycle: Sure, many current and future regulations require recycling, but this should just be a matter of sound business these days – sustainable practices that add value and are "green" in terms of the environment and your bottom line. Fly your "green flag" proudly and with cost reduction in mind.

 

4. Redesign: What is a good design today may or may not be a good design tomorrow when your company grows. How can you redesign your distribution center or logistics network to bring new life to your business? Does your information technology need an upgrade? Or perhaps redesigning means simplifying. It varies by industry sector and company but bears looking into in the coming year.

 

5. Re-imagine: This goes to the heart of innovation and big ideas. It’s time to kick-start our creativity again, since it has likely been stalled by the recession. What are the possibilities to expand your organization beyond the pure planning phases? What ideas will knock the competition off its feet? Is the booming China market in your company’s future? Sometimes, the best business ideas begin with a spark of imagination tempered with knowledge.

 

6. Rejoice: Be happy that 2009 is behind us, of course. But also rejoice in the fact that companies are really about people, despite a year that has seen too many lose their jobs as companies lost their footing and their customer bases. Celebrate small and large successes and retain your organization’s talented people, because you will need them. Have some fun in your celebrations and let your staff know that they are appreciated.

 

Ahhh .. It will be wonderful to get back to risk-taking, creativity with ideas and projects, and increased confidence and all the rewards that come with them. Sure, it will take hard work but that in itself is a reward.

 

How do you think the "6 R’s" will help you in 2010? I would also be interested in knowing why you want to bid good riddance to 2009; there may be a few things I left out. Happy Holidays.

 

Go!Go!Go!

Jim

 

More resources:

Sustainability podcast series, http://www.tompkinsinc.com/podcast/

Service supply chain and reverse logistics, http://gogogosupplychain.tompkinsinc.com/post/Services-Supply-Chain-Aftermarket.aspx

 


Business jargon is something we all use at work to describe common situations or concepts. In fact, we use jargon so much that over the years the words themselves tend to lose meaning, or their meanings get skewed.

 

As a regular feature on this blog, I take a minute to examine some of these jargon words in an attempt to help us remember what these words really mean.

 

"Innovation" is one of these words. I would define this word as "finding a new way of doing something that works better than the previously established way."

 

The part about finding the new way is important. Innovation can happen purposefully due to years of research and work. But, innovation can also happen by accident. One famous example is the Post-it, which was actually the result of an attempt to make stronger glue. It resulted in an accidental creation of a less-sticky glue that, when applied to paper, allows Post-its to be removable and re-usable today.

 

The word "innovation" has been around since the 1500s, and shares similar roots with the words "alter" and "renew." Because of these roots, innovation goes hand and hand with change, which we are seeing now with the automobile industry. Great change has swept through the industry, as the market redefines what it wants from a car as a product. As the car producers adapt, innovation has cropped up. An example of this is the hybrid car, which consumers like, because they are green and save on fuel.

 

A more extreme example of innovation, not in the auto industry but in personal transportation itself, was recently covered in a Wired Magazine article. It described a Florida retirement community with 77,000 residents, many of whom use electric golf carts to get around.

 

But they don’t just use the carts to get around the golf courses and recreation areas of the retirement community - they drive them in the city itself, which has built golf cart access around the roads and shopping centers so these residents can easily access them by golf cart.

 

Car-sharing is another innovation in transportation from ZipCar, a service that allows you to reserve a car, for a few hours or for a day, that’s already parked at a designated spot. You reserve it online, then go to the parking spot and drive away. When you’re done, you return it to the same parking spot. It’s applicable not only to the general public, but to businesses and to universities, where sometimes students aren’t able to bring their cars.

 

Paid car-sharing and electric golf carts for running errands around town may sound like strange concepts, especially since they are new. With the many universities and colleges in Raleigh, North Carolina, where I live, I’ve been seeing ZipCars on the roads once in a while. I don’t expect to see any golf carts any time soon though – they would be crushed on the I-440 Beltline!

 

But back to my word: the way to make innovations like these really work is to try them out in the appropriate market. Innovation, when it’s really good, catches on like wildfire through adaptation as people come to view the new way as better, easier or faster.

 

How can you foster innovation in your company? This is a burning question now, as the innovators during this recession could be the winners when it’s over and recovery and new growth commences. I suggest you create your company’s Great Comeback plan, as outlined in this Executive Briefing, which has the steps to allow for innovation while keeping ahead of the competition.

 

What innovations are happening in your industry now that you would have never expected? Leave a comment below and point out some examples.

 

Photo credit: jdanvers


You know the three Rs: Reduce, reuse, recycle.

 

But do you know the five Rs? These five should have a major impact on your business!

 

I explain the five Rs in the latest Global Supply Chain Podcast, which kicks off a five-part series talking about sustainability issues in business and what top companies are doing to green their operations.

 

I'm really excited about this series, because not only can it help companies with supply chain cost reduction and with other costs, it can have an amazingly positive effect on the world. In the podcast, I talk about how one company set out to reduce their carbon usage, and they were able to hit their goals. In the process, the company ended up saving $1.5 billion dollars!

 

Listen to this introductory podcast here:

http://www.tompkinsinc.com/podcast/transcripts/11-17-09-podcast31-sustainability-series-1.asp

 

The next parts of this series will be on:

 

1. Packaging

2. Transportation

3. Facilities and Buildings

4. Recycling and Reuse

 

This is a great topic, so be sure to subscribe to get updates when the next parts in the series are released every two weeks:

http://www.tompkinsinc.com/podcast/

 

Speaking of green and sustainability, congratulations to Tompkins Associates’ clients for these recognitions:

 

Williams-Sonoma for being named a "2009 Green Supply Chain Award" winner by Supply & Demand Chain Executive magazine. The award recognizes companies that incorporate sustainability into their supply chains.

Medtronic, for their top ranking on The Green List of American corporations by Newsweek. 

Go!Go!Go!

 

Photo credit: Pylon757


I just recorded a podcast with Mike Moore, the co-founder, President and CEO of American Energy, about cost reduction for business operations in their energy usage. It’s a major issue that affects us all, around the world, because of concerns for the environment. Businesses can make a big impact on the environment and save money through energy use reduction, and Mike and I talk about some of the ways to achieve this.

 

Mike answers some tough questions in this podcast, and we talk about the current state of energy management and the future possibilities that may come from energy legislation. An important take-away that Mike points out is a really important first step his clients take when reducing their energy usage and carbon footprint. He explains that it’s essential to understand your business operation’s current emissions inventory, especially in terms of greenhouse gasses. This first step creates a baseline for future improvement.

 

However, Mike notes that this kind of project is more time-consuming than it sounds. It is still more than worthwhile to accomplish. Mike points out that with the possibility of a mandatory greenhouse gas reduction and conservation laws for certain industries that will have to be in compliance with any future legislation, some business sectors can’t afford to ignore taking that first step.

 

Not only does energy use reduction help the environment, it reduces operations costs. Listen to more ideas and real-life strategies about this very big topic in this installment of the Global Supply Chain Podcast:

http://www.tompkinsinc.com/podcast/transcripts/6-16-09_podcast21_energy.asp