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Companies that practice sustainability, or green practices that help the environment, do so for a number of reasons.

There are regulatory, legal, financial, and community responsibility and perception drivers that lead to the decision to work toward sustainability. But how many business leaders think of it in terms of managing risks or gaining a competitive edge? Or getting ahead of the game in customer satisfaction?

The pure definition of “sustainability” is: “An approach to business that creates long-term stakeholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. In short, sustainability is the result when responsible actions lead to long-term success.”

Nothing impacts long-term success and shareholder value like a solid supply chain strategy. So it only makes sense that sustainability initiatives should be built into global supply chain strategy.

And as consumers increasingly demand products and services that are certifiably “green,” supply chains with strong sustainability indicators will become more common. This is an evolving area that is ripe with opportunities for energy and cost savings, increased customer satisfaction, and more effective risk management.

Organizations that take hold of the sustainable supply chain conversation now and develop its potential early will boost their financial outlook as well as the environment’s future.

If you’d like to learn more about sustainability and why it matters in your supply chain, check out this complimentary webcast on Thursday, March 29, from 2-3 pm EDT. Hear what the experts have to say and ask questions.

More Resources

Sustainability Strategies Provide Competitive Advantage for Supply Chains

American Energy Solutions

Sustainable Business Excellence Center


Photo Credit: Axel-D

Guess who is most interested in your company’s environmental sustainability efforts? Your customers!

Once in a while in this blog, I like to take a look at business jargon we use all of the time and try to figure out what it really means. So in the realm of business jargon, what does “going green” mean to you?

I recently read an interesting article from IndustryWeek about companies that are “going green,” that is, making their operations more sustainable for the environment. The article reports on an increasing trend: Shareholders are looking past any so-called “greenwashing” and asking for audits in the form of Corporate Social Responsibility Reports.

Shareholders want to know exactly how the corporations and their boards are going about their environmental efforts, and how much of an impact they are really making.

Customers and shareholders will want to see concrete efforts, with clear, transparent disclosure. The jargon of “going green” won’t be enough; details of the actions being taken are now being demanded.

Read more in this article and see more details on what customers and shareholders are asking for in the sustainability area today.


Go!Go!Go!

Jim

 

More Resources

Sustainable Supply Chains

 

Photo Credit: Kevin Jack


How would you like to reduce your company’s electric bill by 30 percent, 40 percent or even 60 percent? Especially now in the middle of winter, I know that these huge bills are never a welcome sight.

 

But there are companies who are able to realize such savings -- taking tens of thousands of dollars off of their bills – by implementing sustainable practices. Not only do they save money, but they're helping the environment. In some cases, the federal or state government will qualify these companies for grants due to their sustainability efforts, which is a big incentive.

 

Sustainability within facilities and buildings is the topic of this fourth installment of a six-part series on sustainable business. Steve Simonson, a partner at Tompkins Associates, and I discuss a lot of great ideas, from what to do when building a totally new facility to what equipment can give you the biggest energy efficiency.

 

For example, lighting typically takes up more than half of a commercial property’s electric bill. There are proven ways to cut these costs through the use of more natural light and certain lighting products and scenarios. Installing energy efficient systems can also go a long way in reducing costs and promoting sustainability.

 

Even planting trees on the roof of the warehouse is an idea some have implemented to good use! What kinds of things are you doing to help "green" facilities and buildings and cut costs?

 

Be sure and listen to the podcast, Environmental Sustainability for Business: Facility and Building Sustainability, for many more details and some great ideas: http://www.tompkinsinc.com/podcast/transcripts/1-19-10_podcast34-facility-building-sustainability.asp

 

See more on greening supply chain resources and best practices.

 

Go!Go!Go!

 

Jim

 

Photo credit: Faith Goble


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

 


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


Sometimes we get subtle reminders of core life principles, and other times they just slap us right in the face. I had one of those hard slaps recently, involving water, sand, and environmental sustainability practices.

 

This time last week, I was on the back of a bus traveling between Safaga, Egypt, and the ancient Egyptian city of Thebes, Luxor. Earlier in the week, my wife and I were in Cairo, Egypt, where we saw the Pyramids of Djoser, Teti, Unas, Userkaf, Keops and Giza, the Tombs of Mereruka, Kagemni and Ankhmahor and the Great Sphinx. We were on a two-week cruise that began in Athens, Greece and ended in Dubai, U.A.E.

 

My harsh reminder came as I was pondering the Top 7 High Intensity Principles while in the deserts of Egypt and the area around the Nile River. First, I want to note that the American phrase, "the shifting sands of time," is really contrary to reality. Although 85% of Egypt is sand and there is a mighty wind that constantly blows in the desert, the times in Egypt have not shifted all that much. At least my observations are that the lessons learned over the last 5,000 years have not led to that many changes in Egypt – the sands of time have not substantially altered circumstances in light of the past.

 

Now on from sand to water. Our cruise took us to Port Said, Egypt and then through the Suez Canal to Safaga on the Red Sea. Without the bounty of the Nile – the world’s longest river at 3,470 miles – it seems that Egypt would cease to exist. The Greek historian Herodotus was right on target 25 centuries ago when he wrote that "Egypt is the gift of the Nile." The river is clearly the country’s core.

 

On the highways between the Suez Canal, or Gulf of Suez or Red Sea, and the Nile River, a bus ride is about 3 to 4 hours through the desert. It is around the Nile where the pyramids, tombs and temples cluster, where the majority of the people live and where most Egyptians have always lived. In fact, without the Nile, the country and its pyramids, tombs and temples would not exist. Although the sands of the Egyptian desert shift continuously, I observed that little has changed in Egypt – it is all about the water and the flowing rhythm of the Nile.

 

Of course, we all know that water is the essence of all life, and we would do well to remember it in this heightened time of striving for green practices and sustainability in life and business. The center (the core) of sustaining life is clean water – something that is easy to forget when we’re sitting in offices, airports, restaurants, or at home with a steaming cup of tea.

 

Interestingly, one of the items on my "To-Do" list that I worked on during this trip was a green, environmental sustainability podcast series. This research has taken me well beyond carbon counting and into material consumption, material recycling, pesticides, and herbicides. My mind has been focused on water, air and soil contamination, natural resources, food supply chains, and sustainable business.

 

Egypt has soared in popularity in the last few years as an offshore destination for Europe and has a young, growing population. Even as the country is gaining increased attention as a location for global business processes and IT outsourcing, the Nile still commands the greatest respect. Water! Egypt is surely dealing with the economic fall-out of the global financial crisis, but it is water that is important for survival and will continue to be so.

 

Have you been to Egypt recently, and if so, what are your observations?

Jim

 

Photo credit: Michael Gwyther-Jones

 


Green is the new green. What I mean by this is that the concept of "green" is not new at all in the supply chain arena.

 

Environmentally friendly efforts have been a hot topic for quite some time. But while many companies are implementing sustainable efforts, the initiatives that are green (financially) as well as green (pro-environment) are leading the pack.

 

Businesses and consumers alike are encouraging environmentally friendly trends, but many times the costs of "going green" overcome the benefits, especially as companies work to regain their strength from the recession.

 

Yet we also see that companies like Wal-Mart are leading the sustainability efforts as they discover that sustainability is a powerful offensive strategy.

 

Along with Wal-Mart, more and more organizations are realizing the impact that sustainable packaging has on energy usage, material availability and costs. The increased consumer interest in environmental issues is also a major motivator for sustainable packaging initiatives.

 

According to a recent Packaging Sustainability Hot Topic Report published by the Supply Chain Consortium, sustainable packaging projects are resting on the shoulders of transportation efficiency, improved package handling, and the percentage of recycled content in the packaging material. (See the chart below for the criteria used by participants from the Consortium’s Packaging Sustainability survey to evaluate packaging.)

 

Sustainability measures for the supply chain and packaging

 

And, to improve their use of packaging sustainability initiatives, the Consortium’s survey respondents say that that they need:

 

A better collection and recovery process;

Higher end-user awareness;

A better-designed supply chain, and

A life-cycle analysis process that identifies the cost effectiveness of sustainability initiatives.

 

So, with all of this green awareness and interest in greening supply chains, the future appears to be bright for the evolution of sustainable packaging, and I’m wondering how your company's supply chain strategy fits in with this trend. Are sustainability efforts important to you? What are your sustainability goals and what will it take to reach those goals? Leave a comment below if you would like to share your thoughts. 

 

To view the Supply Chain Consortium’s Packaging Sustainability Hot Topic Report, click here.

 

Go!Go!Go! And stay green.

 

Jim