Supply Chain Transparency for Development

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1 Supply Chain Transparency for Development Dr. Leonardo Bonanni Founder/CEO November 7, 2012

2 Collaborating for Sustainability Incubated at the MIT Media Lab, Sourcemap found its first applications when small business owners shared data for infrastructure and economic development. Working with the Scottish government, Sourcemap asked brewers in the Highlands to share their supply chains and found a common weakness: a bottling plant located far to the South. The government invested in a new bottling plant in the Highlands, reducing shipping by over two thirds. Before: 9,100 km After: 3,000 km

3 sourcemap.com mysourcemap A Social Media Platform for: CSR Reporting Product Traceability An Internal Dashboard for: Supply Chain Information Management Risk Planning and Response Supply Chain Strategy

4 Sourcemap.com: sharing the source of products Map important supply chain sites, add multimedia content, and calculate environmental footprints Describe your product or company Browse a database of over 3,600 supply chains Search for specific sources on a map Share the supply chain by embedding on other websites and linking products through mobile barcodes: Communicate directly with customers

5 Sourcemap.com: visualizing environmental footprints Nodes indicate contributions to the overall footprint at each site in the supply chain Arrows show the footprint of each shipment Size shows the contribution of each site and shipment to the total footprint Calculations are transparent so that they can be independently verified References are available to the published source of each impact factor Multiple Impact Factors can be visualized including carbon, water and energy footprint.

6 Mobile Traceability A multi stakeholder group led by Office Depot is mapping the carbon life cycle of recycled paper and connecting consumers with the footprint story through QR codes. The mobile barcodes allow Sourcemap to trace a path to the consumer s exact location.

7 Mobile Traceability A multi stakeholder group led by Office Depot is mapping the carbon life cycle of recycled paper and connecting consumers with the footprint story through QR codes. The mobile barcodes allow Sourcemap to trace a path to the consumer s exact location.

8 Crowdsourcing the supply chain Sourcemap is helping companies and municipalities crowdsource information from their suppliers in exchange for visibility and useful benchmarking information. Embeddable Map(s) are embedded on the city s websites and on other stakeholders Businesses contact the city to add themselves to the map and customize their profiles Search for specific businesses by name, type, size, and other key attributes Profiles for each company include products sold, contact information, photos, videos, and a link to the business website Residents can contact the city to ask questions, suggest ideas, or make complaints

9 sourcemap.com mysourcemap A Social Media Platform for: CSR Reporting Product Traceability An Internal Dashboard for: Supply Chain Information Management Risk Planning and Response Supply Chain Strategy

10 There is growing demand for supply chain visibility Companies are being asked to report on many aspects of their extended supply chains, leading to data sharing initiatives across the extended supply chain. Forced Labor California SB 657 Ingredient Quality FDA & Rx360 Consortium Carbon Footprint Sustainability Consortium Eco Labeling France Grenelle 2 Water Footprint CDP Water Disclosure Suppliers CDP Supply Chain Conflict Minerals Dodd Frank Environmental Performance Sustainable Apparel Coalition

11 Every Site, Every Shipment, Every Risk On One Screen Crowdsourcing A private social network connects manufacturers to upstream suppliers and downstream distributors, to the n tier Big Data A shared database of supply chain wide metrics including logistics, risk, and sustainability Rapid Response A real time platform connecting decision makers with suppliers, distributors, and customers Strategy Vendors Procurement Operations Sales Distribution Planning tools to identify risk hotspots and compare optimization scenarios

12 Supply Chain Wide Metrics: a Triple Bottom Line Approach People Codes of Conduct Social Audits Stakeholder Engagement Demographics Political/Social Risk Planet CO2e Energy Water Toxics Weather Climate Change Profits Spend, Lead time, Capacity, and Leverage Recovery time, Time toqualify Commodification, Solesourcing, Transport bottlenecks

13 Supply Chain Strategies A B Substitute sources based on local variables Diversify to mitigate risk from suppliers and shippers C D Bypass unnecessary steps and intermediaries Optimize efficiency across a network

14 Visibility Today = Planning for Tomorrow The latest climate models can be used to pinpoint water and temperature changes over the next 20 years with significant changes expected to impact power generation and agriculture Comparing today s supply chains with tomorrow s climate conditions indicates where to direct mitigation efforts as in this visualization, showing Saharan climate shifting South across Africa.

15 Dr. Leonardo Bonanni Founder/CEO November 7,