BIOTECH SUPPLY October 8-9, 2012 Crowne Plaza, Foster City, CA Implementing Sustainability Programs: Case Studies from the Field Megan Maltenfort, Sustainability.

BIOTECH SUPPLYBIOTECH SUPPLYBIOTECH SUPPLYBIOTECH SUPPLYOctober 8-9, 2012

Crowne Plaza, Foster City, CA

Implementing Sustainability Programs:Case Studies from the Field

Megan Maltenfort, Sustainability Manager VWR International, LLC

VWR Corporate Overview

04/18/23 2

VWR… Founded over 150 years ago One of the largest distributors of lab supplies in the world 8,000 associates in over 25 countries $4.1 billion in sales (2011)

Mission: To enable the advancement of science throughout the world

Common Customer Sustainability Requests

04/18/23 3

Case Study: Customer Tote Programs

04/18/23 4

Source: wh1.com

Case Study: Customer Tote Programs

04/18/23 5

Customers may not see full environmental impactImpacts are not eliminated only shifted along the supply chain

What Distributor’s Customer sees: Reduced waste- packaging &

cardboard- less clutter in lab Positive impact to sustainability goals-

metrics are favorable

Problem Solved- Right?

What the Distributor sees:x Increased waste at Distributor’s facilities- packaging & cardboardx Negative impact to Distributor’s sustainability goalsx Totes are heavier than cardboard impacts fuel efficiency during transportx Totes break and need to be repaired and replaced- increased costs/wastex Totes are not returned and need to be replacedx Packing products on totes is not easily integrated into distribution process

Key Challenges

04/18/23 6

• How do you give the customer what they want when it does not fit your business model• Example- Delivering product in carts to reduce waste at customer sites

• How do you help customers see sustainability from broader perspectives• Balancing customer sustainability initiatives with your own• Customers may ask for services that are detrimental to your own

program this forces you to look up the supply chain

Developing Successful Tote Programs

04/18/23 7

Create closed loop program where suppliers are involved

Supplier ships product in tote to avoid disposable packaging from beginning Customer ships empty totes directly back to supplier Distributor does not generate waste from detrashing and does not have to store and manage totes More streamlined, efficient, and implementable solution

Engaging Suppliers to Reduce Waste

04/18/23 8

In a Distributor’s Customer Survey about Waste and Recycling:

#1 Complaint was Packaging Waste

Solution: Engage upstream partners to fix

downstream problems

Solution: Engage upstream partners to fix

downstream problems

Inspired by Toyota- Kaizens and lean thinking (Japanese for "improvement" or "change for the better”)- expand from internal exercise to external with distributors and customers

Common Customer Sustainability Requests

04/18/23 9

Balancing Product Sustainability and Costs

04/18/23 10

Price of “Environmentally Preferable” Product

Price of “Average” Product

Low Cost Environmentally Preferable Products (EPPs)

04/18/23 11

• Across Industries: Grainger, Office Max, VWR • Cost-competitive EPPs Within Our Industry: Centrifuges (recycled content), pipet tips (bio-based), freezers (energy efficient)

• Across Industries: Grainger, Office Max, VWR • Cost-competitive EPPs Within Our Industry: Centrifuges (recycled content), pipet tips (bio-based), freezers (energy efficient)

Many companies are creating branded EPPs which are lower cost

EPA-defined environmentally preferable attributes

RecyclableRecycled content

Reusable

Energy efficient

Water efficientBio-basedTake-back

DurableEasily Disassembled Reconditioned

Common Customer Sustainability Requests

04/18/23 12

Product Recycling and Take-Back Solutions

04/18/23 13

Advantages: Can reduce waste in supply chain and help customers achieve sustainability

goals Can provide customized solutions to customers to create “stickiness” Can make money by providing these services

Pipet tip box recycling

Chemical recycling

Garment recycling

Glove recycling

Equipment recycling/take-back

Key Drivers of Sustainability Success

1. Collaboration & transparency with customers and suppliers

2. Sharing of best practices & mistakes• Partners are at different stages of the journey- be

motivational, patient, and supportive

3. Increasing efficiency and reducing waste is a win for all4. Look at the big picture & think holistically

04/18/23 14

Thank You!

Questions….

04/18/23 15

Megan MaltenfortSustainability Manager, VWR International

[email protected]