State The of the Sustainable Supply World
Global Sustainability Focus
Hottest Topic in Business China, Japan, Europe
The Traditional Model of Sustainability Stands on Three Legs
Environmental Sustainability Social Responsibility Organizational Sustainability
Add a Fourth Leg: National Sustainability
Sustainability Foundations
Sustainability
Design
Starts with Design
of Firm Design of Products and Equipment Design of Practices
END The
Body Shop Foss Maritime Porteon
What Does This Mean for Supply Management?
Increasing
Emphasis on Sustainability and Green Activities Changes in How We Source Changes in Inventory Policies Changes in How We Use Transportation and Logistics Increased Scope of the Supply Function
Survey: Top Three Reasons for Green Focus
Improve Customer Relations Improve Public Relations Reduce Fuel Consumption and Cost ??? Greenwashing Motivation for Change
Cost Reduction? Sustainability?
Causes of Concern
Our Suppliers' Practices
Environmental Social
Finding Suppliers With Sustainable Practices Verification
Environmental Social Often Drives Sustainability Concerns
Global Population Growth
Population Growth: The Northwest Example
Population
Increase in Next 15 Years
Washington
+23% Oregon +25%
Port
of Portland Forecast Cost of Congestion Study Trucks Between Seattle and Portland Chronic Underfunding of Infrastructure
Population Growth: The National Example
Population
$286
400 Million by 2043 2005 Transportation Bill
Billion Over 5 Years 6373 Earmarks Expires in 2009
Population Growth: The Global Example
UN
Forecast
World
Population 2007: 6.78 Billion World Population 2050: 9.2 Billion
Today:
Half of Population in Urban 2050: 70% in Urban Areas
2050:
27 Mega-Cities of Over 10
Million
Environmental Sustainability
Environmental Sustainability Index, 2005 Rankings
Index
Air
by Yale and Columbia Universities
Quality Water Quality Climate Change (Greenhouse Gasses) Land Change (Protection & Conservation) http://www.yale.edu/esi/b_countryprofiles.pdf
Environmental Sustainability Index, 2005 Top Ten
1. Finland 2. Norway 3. Uruguay 4. Sweden 5. Iceland 75.1 73.4 71.8 71.7 70.8
6. Canada
64.4 7. Switzerland 63.7 8. Guyana 62.9 9. Argrentina 62.7 10. Austria 62.7 45. United States 52.9
Environmental Sustainability Index, 2005 Rankings: Trading Partners
13. Australia 61.0 30. Japan 57.3 31. Germany 56.9 33. Russia 56.1 45. United States 52.9 65. U.K. 50.2 69. Italy 50.1 82. Venezuela 48.1 95. Mexico 46.2 98. Nigeria 101. India 110. UAE 122. S. Korea 133. China 136. S. Arabia 145. Taiwan Last N. Korea 45.4 45.2 44.6 43.0 38.6 37.8 32.7 29.2
Environmental Sustainability
Environmental
Carbon
Issues
Footprint Global Warming Consumption of Non-Renewable Resources Pollution Land Preservation Many Others
The Environment and Supply Management
Planning
for Population Explosion Increasing Resource Scarcity Increasing Pressure on Supply Managers to Provide Positive Environmental Results.
Social Responsibility
Social Suppliers Responsibility
Carriers Workforce Immigration Education
Sustainability and Social Responsibility
An
Entity Has Social Responsibility to Society
Child
Labor Excessive Hours Less Than Living Wages Any Forms of Exploitation Gender Inequity Business Ethics
All
Facets of Human Rights
Retirements and Labor Concerns
Labor
Shortage Loss of Institutional Memory Loss of Practical Knowledge Education of Replacements Need Focus on Processes to Capture Knowledge Need to Attract New Employees
National and Organizational Sustainability
National and Organizational Sustainability
Sustainability
Nation Organization
Must Be Profitable
Invest
In Sustainability
Basic
Research Infrastructure Technology Education
Organizational Sustainability
Adopt
the Philosophy of Sustainability as a Corporate Culture
Similar
to TQM
Design
the Organization, its Products and Processes to be Sustainable Apply Philosophy of Continuous Improvement to Sustainability Practices
What Can We Do?
Sustainable Supply Management
Increased
Energy Process
Scope
Environmental
Wastes
Supplier
and Carrier Selection (and Elimination)
Sustainable Supply Management
Recycle
Buy
and Use Encourage
Minimize
Waste Energy Conservation/Reallocation Seek Suppliers With Sustainable Practices ISO 14000 - A Qualifier?
Sustainability in Transportation
Logistics as Much as 70% of an Organization's Carbon Footprint Low Sulfur Fuels Alternative Fuels
Ethanol Biodiesel Fuel Cells Solar/Electrical Others?
Long Term Solutions
Is Ethanol The Answer?
If Trip is 1,000 Miles,
At 20 MPG, requires 50 gal gasoline
If 5% ethanol causes 10% mileage reduction, then at 18 MPG, requires 55.6 gal. If 5% of that is ethanol, then 52.8 gal is gasoline. Thus, if correct assumptio...