Responsible Supply Chains 2.4.17

Responsible Supply Chain Management

UW-Oshkosh Executive MBA Presentation

February 4, 2017

Joanne Gorski, SCOR-P, CFPIM, CSCP, CLTD, Green Manufacturing Specialist

President, Sustainable Insights [email protected]

Biography

• Sustainability/Supply Chain Consultant

• Certification Chair for APICS• Former FVTC Faculty

• Sustainability• Supply Chain• Applied Engineering

• APPVION• IT, Logistics, Supply Chain Planning

• Kimberly-Clark• Logistics, Supply Chain Planning,

Operations, Warehousing

Discussion Overview

• Supply Chain Management Challenges

• “Amazon Effect”

• SCOR® Model

• Sustainable Procurement

• Responsible Supply Chain Management Examples

• Q&A

Top Supply Chain Challenges 20161. Hiring and retaining a skilled workforce

2. Customer demands for faster response times

3. Customer demands for lowered delivered cost

4. Rising customer service expectations

5. Increasing volatility of demand

6. Customer demands for more customized products and services

7. Increasing number of products

8. Increasing volatility of supply, including supply chain disruptions

9. Customer demands for smaller, more frequent deliveries

10.Customer demands for more supply chain transparency/sustainability

Source Deloitte: http://www.healthcarefinancenews.com/slideshow/mhi-and-deloitte-

identify-top-10-supply-chain-challenges-2016-see-list?p=0

“AMAZON Effect”

• What is “The Amazon Effect”?

• How many of the challenges can be linked to it?

• What is Amazon’s CEO Jeff Bezos background?

• Name one business that is not impacted by it?

What is the SCOR® Model?

• The product of a global non-profit consortium (SCC)• A framework that links business processes, metrics, best practices and technology• Describes the all the business activities that satisfies a customer’s demand• Is organized around the primary management processes: plan source, make, deliver,

return, enable• Can be used to describe simple or complex supply chains using a common set of

definitions (such as value stream mapping)• Applies to diverse industries• A benchmarking & diagnostic tool

SCOR® Performance Attributes

• Reliability: Ability to perform tasks as required

• Responsiveness: The speed at which tasks are performed

• Agility: The ability to respond to marketplace changes to gain or maintain a competitive advantage

• Cost: The cost of operating a supply chain

• Asset Management Efficiency: The ability of the supply chain to efficiently use assets

SCOR® Metrics

APICS Certification Coverage of SCOR® Processes

• Develop operations plans

• Resource management

• Balancing requirements

• Gap analysis/planning

Plan

• Inbound logistics

• Receiving

•Supplier payment

Source • Create product/service

• MTO/MTS/ETO

Make

• Order management

• Transportation

• Pick/Pack/Ship

Deliver • Reverse flow of goods activities

• Disposition/Scheduling

Return

Operations Manager

CSCP

CPIM CLTD

Enable

SC Management: Business rules / performance / data / risk / contracts / regulatory / resource

GreenSCOR®

Can be used as a framework for environmental accounting

• Carbon Emissions

• Air Pollutant Emissions

• Liquid Waste Generated

• Solid Waste Generated

• % of Recycled Waste

• What other eco-efficiency measures need to be considered?

What is Sustainable Procurement?

The process of acquiring goods and services that:•Meets the user’s need•Delivers long term value for money•Maximizes social and economic benefits•Minimizes damage to the environment and health

Source: http://www.forumforthefuture.org/sites/default/files/project/downloads/buying-better-world.pdf

Sustainable Procurement is Powerful

• Purchasing is the gateway into your organization

• Setting guidelines and criteria transfers control over sustainable performance to your organization

• Drives marketplace toward adopting sustainable practices for long-term improvement

• Purchasing dollars = power!

3rd Party Certifications

• Green Seal

• Fair Trade

• Forest Stewardship Council

• ENERGY STAR

• LEED

• Rainforest Alliance

• WaterSense

• Cradle to Cradle

• Council for Responsible Sports

Tiffany’s and Conflict Free

http://www.patagonia.com/blog/worn-wear/repair-is-a-radical-act/

Same Container through Entire Supply Chain

• Egg Farms

• Distribution Centers

• Retailers

• Closed-loop system: a system that accounts for the return flow of products for reuse, asset recovery, or recycling in a way that is cost-effective and maximizes returns. APICS Dictionary, 15th edition

Sustainable Event Management

Service example:

• New North Summit 2015

• ISO 20121

• 99.5% waste diversion from landfill

• 100% event spend with local businesses

• World-class performance

• Planning & Communications

• Procurement

• Access & Equity

• Community Legacy

• Resource Mgt• Waste

• Water

• Energy & Carbon

Certification Credit Categories

• What is responsible supply chain management?• What are the challenges your organization faces with it’s supply chain?• What do you need to do to combat the “Amazon Effect”?• Does your organization use some type of supply chain model?• Does your organization practice sustainable procurement?

Contact Information:• Joanne Gorski, SCOR-P, CFPIM, CSCP, President, Sustainable Insights LLC• [email protected]• 920-636-6721

Closing Questions