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Designing Sustainable Supply Chain Systems

Resilience.OSU.edu. Joseph Fiksel Executive Director. Designing Sustainable Supply Chain Systems. Safety & Business Continuity. Long-Term Strategic Sustainability. Resilience. The capacity to survive, adapt, and flourish in the face of turbulent change. Our Expanding Footprint.

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Designing Sustainable Supply Chain Systems

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  1. Resilience.OSU.edu Joseph Fiksel Executive Director Designing Sustainable Supply Chain Systems

  2. Safety & Business Continuity Long-Term Strategic Sustainability Resilience The capacity to survive, adapt, and flourish in theface of turbulent change

  3. Our Expanding Footprint “If every human alive today consumed natural resources and emitted carbon dioxide at the same rate as the average American, European , or Australian we would need at least another two earths.” - WWF International

  4. Sustainable Materials Management Industrial Systems Ecosystem Goods & Services Economic Goods & Services Product/Service Supply Chains Capital Stocks Demand Fulfillment Energy Production Human Impacts Material & Energy Harvesting Direct Labor Direct Utilization Natural Systems Societal Systems Renewable Resource Stocks Energy Use Service Use Non-renewable Resource Stocks Waste Recovery Durable Product Use Waste & Emissions Consumable Product Use Finite Media Energy Sources Source: J. Fiksel, “A Framework for Sustainable Materials Management,” Journal of Materials, August 2006.

  5. The Hidden Mountain of Resource Use  Direct resource consumption Life Cycle Assessment (LCA) € $ Purchased goods & services(indirect) Supply chain Footprint Full ecological footprint Ecosystem goods and services – embedded natural capital

  6. Paradigm Shift • Material-Based Economy • Throughput • Products • EconomicCapital • Value-Based Economy • Knowledge • Services • Human Capital

  7. Less Stuff—More Value

  8. Life Cycle Thinking Customers Contractors Measure Suppliers Assets Communities Employees Natural Resources: Energy, Water, Materials, Services

  9. CorporateSustainability

  10. Enterprise Strategies Preventing Pollution at the Source Converting Wastes into Resources Developing Sustainable Products Eco-efficiency Value Out Resource In Substituting Services for Products Collaborative Networks and Partnerships Adapted from World Business Council on Sustainable Development

  11. Greening of Consumer Products

  12. Greening of Service Industries

  13. By-Product Synergy Networks Waste = Food = Value = Profit Industrial ecology is a process systems approach that mimics natural cycles, converting waste into “food”

  14. “By-product synergy (BPS) is the matching of under-valued waste or by-product streams from one facility with potential users at another facility to create new revenues or savings with potential social and environmental benefits.” - U.S. Business Council for Sustainable Development

  15. Eco-Flow™ Industrial Ecology Optimization

  16. Kansas City Network CCP Cook Composites & Polymers Painting/Coating Paint stripping Polyester resin Super Sacks Gel coats Gerdau-Ameristeel Iron source Shredder residue Millscale Ferrous metals Furnace dust Railcar debris Gerdau-Ameristeel Alternate fuels Erosion control Confetti/crafts Packaging dunnage Hallmark Hallmark Polyethylene Solid waste Food waste Scrap materials Packaging Waste ink Energy Solvents Cleaning Coating Filtration Finishing Cleaning Metal parts Harley Davidson Paint sludge Powder paint Solvents Used oils Polydrums Pallets Rubber Plastic Metals Alkalines Abrasives Solid waste Harley Davidson Lafarge Alternate materials KCMO Solid Waste Appliances Wood chips Glass Missouri Organics Composting Erosion control FGD sludge Fly ash Wood chips KC Power & Light Systech Potential Savings: $15 million Alternate fuels

  17. Natural Capital Accounting for Natural Capital Ecosystem Products & Services Sun Economic Capital Economic Products & Services Eco-LCA™ Consumers

  18. LifeCycle of Industrial Materials Value Creation Value Extraction Inputs Outputs Production Supply Chain Processes Materials Products Utilization & Consumption Processes Energy By-Products Non-Product Waste & Emissions Revalorization Recovery Processes Recycled Parts & Materials Residual Materials Virgin Materials Extraction Disposal Environment – Natural Capital

  19. Automotive Fuel Analysis Gasoline 8 6 4 2 0 MSW Cellulosic Ethanol Biodiesel Return on Energy Crop Cellulosic Ethanol Corn Ethanol Renewability 0% 50% 100% Source: A. Baral and B. R. Bakshi, “The Role of Ecological Resources and Aggregate Thermodynamic Metrics for Assessing the Life Cycle of Some Biomass and Fossil Fuels”, Environmental Science and Technology, 2009

  20. Material-Energy-Water Nexus Energy excludes ecosystem services ~ 0.5 kWh/MT ~ 0.5 MT/kWh ~ 100 liters/kWh ~ 3 kWh per $ Water Materials ~ 1 kg per liter ~ 100 liters per $

  21. Progress Indicators Greenhouse Gas Emissions Human Need Fulfillment Energy Intensity Persistent Toxic Emissions Energy Efficiency Health & safety Improvement Societal Value Environmental Footprint Water Intensity Solid Waste Intensity Resource Conservation Asset Recovery Land Intensity Non-Renewable Resource Intensity Economic Development Poverty Alleviation

  22. Design for Environment Joseph Fiksel McGraw-Hill, July 2009 • Disruptive Innovation • Product Development • Process Eco-Efficiency • Life Cycle Management • Business Value Creation • Supply Chain Sustainability

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