The Greening of the Supply Chain

1. The Greening of the Supply Chain Jonathan D. Gatrell VP – Industry Development Inovis

2. The Supply Chain is the Center treehugger Virtualization brundtland commission materials sourcing audit Data Centers Carbon Footprint Sustainability RoHS governance Servers recyclable greenhouse disposal quality Compliance Transportation WEEE analysis Carbon Credits biomimicry environmental reduction design packaging Green IT eInvoicing emissions

3. Let’s start with the business.

4. … A Branded Global Citizen… SOURCE: AMR Research

5. … Green Opportunities … • Collaboration tools can reduce travel • Video/Tele Conference • Supply chain management tools can optimize supply chains for environmental factors • Routing • LTL • E-business initiatives provide low impact shipping options. • Direct to consumer • Cross Docking • Business activity monitoring and alerts can drive improved decisions

6. …Where Industries are Focusing… First Degree: Infrastructure Second Degree: Applications & Process Third Degree: Materials and Service SOURCE: Gartner

7. …Gartner: Green IT is REAL… By 2009, one-third of IT organizations will have "improved environmental sustainability" as a top IT management issue, and included as a priority item in the list of buying criteria. By 2011, suppliers to large global enterprises will need to prove their green credentials via an audited process to retain preferred supplier status.

8. Global Retailers Multi-Channel Commerce Private Label The Greening Consumer Drivers for a Green Supply Chain Globalization Increasing Sourcing Complexities Compliance and Corporate Conscious

9. Let’s start with the customer.

10. The Customer has the Power Power to buywhatthey want!

11. Transparency Customers connect directly with other customers and organizations for recommendations.

12. …The Race for the green consumer… • Consumers do make decision on a brands environmentalism: • the products they purchase (79%), • the products/services they recommend to others (77%), • where they shop (74%), • where they choose to work (73%) • where they invest their money (72%). SOURCE: 2007 GfK Roper Green Gauge

13. Not just Consumerism – Economics too!

14. Consolidate Air Freight Deconsolidate Customs Ocean Freight Customs … A world of opportunity… • Demand Driven Supply Chains • 9 of 10 suppliers source from China • Multi-Modal Options

15. Globalization Longer supply chains limit visibility, increase complexity and impact the environment.

16. “$200 Oil” Higher transportation costs a key driver to impacting change

17. Cost Reduction Greener manufacturing and material selection can reduce cost of production

18. Compliance Automation, Visibility and Control The Supply Chain Executive Goes Green

19. …Collaboration Is Increasing… “How much do you collaborate with trading partners for the following activities?” BASE: 89 retailers and 80 manufacturers Source: 2006 Shared Strategy Study by Forrester Research, Consumer Goods Technology, and RIS News

20. …Collaboration Creates Value… “To what degree to you agree with the following statements?” BASE: 89 retailers and 80 manufacturers Source: 2006 Shared Strategy Study by Forrester Research, Consumer Goods Technology, and RIS News

21. …But Collaboration is Hard. “Which of the following are challenging or extremely challenging to your company’s ability to collaborate with its trading partners?” BASE: 89 retailers and 80 manufacturers Source: 2006 Shared Strategy Study by Forrester Research, Consumer Goods Technology, and RIS News

22. Green Retail

23. Mervyns Automation Manual vendor set-up limits responsiveness and paper laden.

24. A Manual vendor setup process Buyer submits new vendor request form Merchant sends paperwork toBuyer's finance Signed financial agreement from vendor New Vendor approved by DMM Vendor Setup in Financial System Validate ID and add to translator or gateway Vendor Welcome Letter Notify New Vendor Teams: Buyer Finance Run onboarding/certification process Vendor Setup Form Create ticket for EDI Send Onbording process notification Set up Product Information Set up Vendor Portals Send Vendor Training Docs

25. Mervyns Solution • Reduces vendor set-up by 10x. • Reduces internal resource requirements. • Accelerates time to automation. • Reduces paper.

26. Boscov’s Optimization Improved on boarding and distribution model reduces impact on the environment. Vendors Expense offsets aren’t effective for on-boarding Vendor certification is manual Data mapping bottlenecked Cross-docking constrained Store sales suffer

27. Boscov’s Solution • Increased e-commerce connections from 200 to 600 vendors. • Reduced operational costs. • Distribution center times shrink from 2 days to 4 hours. • Faster product to more stores.

28. Green Manufacturing

29. The Greening of HP On boarding of new shipment messages, sourcing of material and recycling initiatives

30. IBM: Global Accountability On boarding of suppliers, channel management, compliance and scorecarding

31. …A 5 Point Action Plan … • Know where you stand - Who and What have you automated? • Have a plan – Who and What can you STILL automate? • Incorporate "green" into your existing procurement processes – Remove paper where possible. • Communicate your goals and standards to your supplier community – Align your business community • Do the "easy stuff" first – More partners, more documents

32. What can YOU do today?

33. use this presentation in your business to create awareness forward it to 5 other colleagues to make OR Difference

34. The Greening of the Supply Chain Jonathan D. Gatrell VP – Industry Development Inovis