Dr. Silvia Rossi Tafuri Senior Research Fellow Cranfield School of Management

Transcription

1 Dr. Silvia Rossi Tafuri Senior Research Fellow Cranfield School of Management

2 Agenda Defining sustainability Logistics and carbon intensity The wider implications of sustainability Managing sustainability Unilever Case study

3 What is sustainability? Discuss within your group for 2-3 minutes and pencil down 3 concepts to share

4 What is sustainable supply chain management? Discuss within your group for 2-3 minutes and pencil down 3 concepts to share

5 Food miles Energy use Reverse logistics Water footprint Biodiversity Global sourcing Carbon neutral Resource consumption Product life cycle management No net impact Producer responsibility Ecoefficiency Waste management Freight Transport emissions Cradle to cradle / PLC

6 What level of human activity is sustainable? What is the Earths capacity to re-generate? If everyone in the world lived like the average European we would need 3 planets (Source WWF)

7 Sustainable development Macro economic view Environment Economy Society Sustainable business Corporate responsibility view Environment Shareholder Value Society Supply chain sustainability view Source Make Deliver Return

8 One million people become new mobile subscribers everyday Aviation now transports over 2.2 billion passengers annually in a global fleet of planes Food supply what we thought of as an abundant food supply is anything but...the global systems...will reach breaking point unless action is taken Chatham house

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11 Virtual Water Footprint

12 Transport Carbon Intensity Development of Greenhouse Gas emissions of different sectors ( )

13 Growth in freight transport follows or even exceeds GDP Traffic volume and GDP EU 27

14 Vehicle trip distance lengthening Modal switch away from train/sea to lorry and air

15 Source, stuffintheair.com Source, treehugger.com

16 The complexity of managing sustainably Vs Organic food is it sustainable?

17 Strategies for Sustainability 4 Strategic approaches Risk mitigation

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19 Strategies for sustainability 4 Strategic approaches Risk mitigation Cost minimisation

20 Concept Design Source Make Deliver Return Disposition Aerodynamic design 16% more load 10% fuel saving 20% CO2 reduction Load optimisation / utilisation Improved maintenance Advanced vehicle routing & scheduling Tyre pressure Driver training & behaviour 7% fuel saving Energy efficient tyres 10% difference between best & worst performing Alternative fuels

21 Concept Design Source Make Deliver Return Disposition The UK beer sector will save millions of pound each year by moving to lightweight glass bottles Sustainable Packaging Initiatives Are a Viable Cost-Reduction Solution in a Downward Economy Feb 2009 Heinz has saved 404,000 / year by using lightweight can ends. 1,400 tonnes is the amount of steel saved Heinz can fit 18% more cans on each pallet

22 4 Strategic approaches Risk mitigation Cost minimisation Competitive advantage Concept Design Source Make Deliver Return Disposition

23 A revolution in washing.. Ariel Gel Three years to develop Five million trial formulations Ariel Gel Wash at 15c Concentrated Lower packaging Recyclable pack Lower logistics costs

24 4 Strategic approaches Risk mitigation Cost minimisation Competitive advantage Supply chain transformation Concept Design Source Make Deliver Return Disposition

25 All good stuff but... it s not going to get us where we need to be! UK Govt target? Reduce greenhouse gas emissions by at least 80% by 2050 from 1990 levels

26 Last UN Global Compact Survey to CEOs

27 UNILEVER CASE STUDY

28 UNILEVER CASE STUDY Split into 6 groups and prepare a presentation after discussing the questions provided. Time: 45 minutes to prepare the presentation and 5 minutes to present

29 UNILEVER CASE STUDY Group 1 What lessons can be learned from the Unilever initiative to shift its entire supply to tea from Rainforest Alliance Certified farms? What are the challenges, risks and opportunities posed by the initiative? What did you learn from this case that can be useful for your organization?

30 UNILEVER CASE STUDY Group 2 What are the main opportunities for Unilever in implementing this program? What would you recommend to Unilever s tea suppliers? What did you learn from this case that can be useful for your organization?

31 UNILEVER CASE STUDY Group 3 What are the main challenges for Unilever in implementing this program? Why did Unilever decided to work with a NGO? What did you learn from this case that can be useful for your organization?

32 UNILEVER CASE STUDY Group 4 What are Unilever s main environmental practices in the tea supply chain? How will suppliers benefit from being involved? What did you learn from this case that can be useful for your organization?

33 UNILEVER CASE STUDY Group 5 Why is Unilever interested in revitalizing Lipton s supply chain? What s the role of suppliers in the program? What did you learn from this case that can be useful for your organization?

34 UNILEVER CASE STUDY Group 6 - How should companies approach the selection of third-party certification partners or eco-label in general? - Can Unilever rely on the Rainforest Alliance to monitor ongoing compliance with certification over time? How exposed is Unilever if the standard for the certification is raised? - What did you learn from this case that can be useful for your organization?

35 OPEN DISCUSSION WRAP UP SESSION What are you going to do differently in regards to sustainability?