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Getting from Point A to Point B Sustainably!

Getting from Point A to Point B Sustainably! . Furniture City, USA!. International Conference of Furniture, Transportation, and Logistics Managers Norman Christopher May 7 th , 2014. Distribution and Logistics The Requirements!. Cost-effectiveness Timeliness (JIT) Safety Reliability

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Getting from Point A to Point B Sustainably!

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  1. Getting from Point A to Point B Sustainably! Furniture City, USA! International Conference of Furniture, Transportation, and Logistics Managers Norman Christopher May 7th, 2014

  2. Distribution and LogisticsThe Requirements! • Cost-effectiveness • Timeliness(JIT) • Safety • Reliability • Responsibility • Compliance • Sustainability

  3. The “New” Economy Linear Economy • Natural Resources Take Make Waste Dispose • Technical and biological materials mixed together • Energy from finite sources e.g. petrochemical sources Circular Economy Make Make Earthe.g. compostable Manufacturee.g.industrial symbiosis Consume Use Return Enrich Technical Materials Biological Materials • Energy from renewable resources • “REs”: Reduce, Reuse, Remanufacture, Refurbish, Recycle, Reassembly, Reimagine! Source: Adapted Ellen McArthur Foundation

  4. ANSI/BIFMA e3 Furniture Assessment Standard Scope • Provides a pathway towards sustainability by establishing measurable criteria for multiple levels of achievement and/or performance • Is applicable to all businesses and institutional furniture and includes but is not limited to: • Moveable walls, system furniture, desk systems, case goods, tables, seating, and accessories • Is also applicable to materials and components manufactured by suppliers to furniture manufacturers • e3 Standard – evaluate and report score • Level – validate and certify score Source: www.levelcertified.org

  5. ANSI/BIFMA e3 Furniture Assessment Standard Note: (P) primary Source: www.levelcertified.org

  6. decrease greenhouse gases Source: pathways.wri.org

  7. Sustainability in the Marketplace! Producer Supplier Customer “Gate to Gate” Sustainable Supply Chain Management • Life Cycle Analysis Systems Approach • Product Design • Procurement • Production • Packaging • Warehousing • Transportation • Logistics • Risk Management

  8. Sustainable Supply Chain Management Product Development andStewardship CompetitiveEnvironment MarketEnvironment UpstreamSuppliers DownstreamCustomers RegulatoryEnvironment InternalEnvironment Internal Operations Source: Sustainable Logistics and Supply Chain Management, D.B. Grant, A. Trautrims, C.Y. Wong

  9. Motivators for Sustainable Supply Chains • Customers (56%) • Attraction (26%) • Retention (19%) • Reputation (8%) • Brand (2%) • Access (1%) • Costs (18%) • Risk Management (14%) • Efficiency (3%) • Productivity (1%) • Compliance (16%) • Regulation (14%) • Social Pressure (2%) • Competitive Advantage (7%) • Conscience/Moral Obligation (3%) Source: Managing Sustainable Global Supply Chains

  10. Advocates for Sustainable Supply Chains Source: Managing Sustainable Global Supply Chains

  11. What are the Key Issues in International Supply Chain Sustainability? Source: Managing Sustainable Global Supply Chains

  12. Pollution The Manufacturing and Product Life Cycle Waste Byproducts Inputs and Procurement Raw Materials Processing Manufacturing Remanufacturing Product Design Transportation and Distribution Recycling Distribution Product End-of-Life Retailing Consumer Use Product Reuse Disposal Source: EPA

  13. Hierarchy of Waste Management Source: Adapted Sustainable Logistics and Supply Chain Management

  14. Life Cycle AnalysisSustainability Impact

  15. Examples of Opportunities for Distribution and Logistics! • Global Logistics Stakeholder Network • Sustainable Packaging • Sustainable and Alternative Transportation • Sustainable Shipping Initiative

  16. Impact of Plastics Packaging on Life CycleEnergy Consumption and Greenhouse Gas Emissions in U.S. and Canada • Six general categories: caps/closures; beverage containers; rigid containers; carrier bags; stretch/shrink wrap; flexible packaging • LCA Methodology used • Comparison to packaging products made with alternative materials Source: American Chemistry Council

  17. Study Results Premise: Replacing all 6 plastic packaging products with non-plastic alternatives in U.S. in 2010 would: • Require 4.5x as much packaging material by weight increasing amount by 55 MM tons • Increase energy use by 80% equivalent to energy from 91 oil supertankers • Result in 130% more global warming potential equivalent to adding 15.7 MM more cars on roads Source: American Chemistry Council

  18. Study Results The answer! • The 4 Rs: Reduce, Reuse, Recycle, Recover • Downsizing/lightweighting of packaging • Increased recycling and waste recovery • Increased use of recycled content • Increased use of renewably sourced materials Source: American Chemistry Council

  19. What’s Next for the Shipping Industry?Safety Sustainability • Safety • Marine Pollution and Waste(Environmental Impact, Anti-Fouling, Phase Out of Single Hull Tankers) • Air Pollution (Sulphur Emissions, Automotive Emissions) • Climate Change(Kyoto Protocol, EU Emissions Trading Scheme, Aviation) • Resource Use(Natural Resource Management; Alternative Energy and Fuel Sources) LegalFrameworks and Regulations Source: Sustainable Shipping Initiative

  20. Distribution and Logistics!What Lies Ahead? • Codes of Conduct • Global Compact (human rights, labor standards, environment, anti-corruption) • Sustainability Assessments • Certifications and Compliances • SA 8000 (Social Accountability) • ISO 14001 (Environmental Management Systems) • ISO 50001 (Energy Management) • ISO 26000 (Social Responsibility) • ISO 14064 (Voluntary GHG Accounting Standards) • ISO 14025 (Environmental Product Declaration [EPD] based on LCA) • Monitoring and Auditing • Data Capture and Analyses • Sustainability Reporting e.g. GRI, ESG • Risk Management Source: Managing Global Supply Chains

  21. Source: Wal-Mart

  22. Management of Risks • Demand (Uncertainty) • Supply (Disruption) • Operational (Breakdown) • Competitive (Innovation) • Security (Crime) • Macro-economic (Downturn) • Policy (Restrictions) • Reputational (Brand) • Fraud (Bribery/Accounting) • Resource (Feedstocks) • Financial (Capitalization) • Legal (Governance) • Environmental (Pollution) • Brand (Marketing)

  23. What’s Ahead for the Export Market and Global Sustainable Supply Chains Use of natural resources Environmental impact and GHG emissions Clean and sustainable technologies Sustainable packaging materials Sustainable shipping initiatives Sustainability assessments and reporting Sustainability standards and regulations

  24. Distribution and LogisticsStrategies for Sustainability “Greening” and applied sustainable development best practices for distribution, logistics, and supply chains • Transportation, vehicles, and infrastructure networks • New technologies e.g. noise reduction, fuel efficiency • Alternative fuels and vehicles • Optimized networks e.g. IT/mobile communications • Sustainable shipping • EPA SmartWay program e.g. fuel conservation, carbon footprint reduction • Buildings • “Green” and LEED design and construction • Sourcing, product manufacturing, and packaging design • Design for Environment (DfE) • Sustainable purchasing e.g. green and local procurement • Sustainable manufacturing e.g. EPA 18 point dashboard • Sustainable packaging • “Smarter” products

  25. Distribution and LogisticsStrategies for Sustainability (Cont.) • “Eco-Efficiencies” e.g. Air, Energy, Waste, Water, Land • Closed loop systems e.g. Life Cycle Analysis (LCA) • Waste minimization • Dematerialization • Pollution prevention • Smarter and cleaner productivity • Mitigation of environmental, energy, health impacts • Reverse logistics • What types of materials can be returned, recovered, or recycled? • How are responsibilities defined and accountability managed? • What is reasonably possible to return, recover, or recycle? • How is economic, social, and ecological value determined?

  26. Distribution and LogisticsStrategies for Sustainability (Cont.) • Sustainable Warehousing • Sustainability assessments and impact analysis • Environmental and carbon footprints • Sustainable/renewable energy • Green/LEED buildings • Handling equipment • Data management • LED lighting and relamping • Corporate Social Responsibility (CSR), Ethics, and Risk Management • CSR e.g. economic, legal, ethical, philanthropic responsibilities • Codes of conduct e.g. labor practices, corporate governance supplier practices, morals and ethics • Management of risks

  27. The Tenets of Sustainability Socially Desirable • 10 • 9 • 8 • 7 • 6 • 5 • 4 • 3 • 2 • 1 Politically Expedient Ecologically Sustainable Administratively Achievable Economically Viable Legally Permissible Technologically Feasible Customer ______________Management - - - - - - - - - - - Development * * * * * * * * * * Source: Sustainable Logistics and Supply Chain Management

  28. Distribution and Logistics!What’s in it for me?! Source: Sustainability: The ‘Embracers’ Seize Advantage, MIT Sloan Management Review

  29. Thank you! Norman Christopher Director of Sustainability Grand Valley State University Author, Sustainability Demystified! chrisfn@gvsu.edu 616-331-7461 (o) 616-443-8549 (c)

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