Introduction to GreenSCOR. Introducing Environmental Considerations to the SCOR Model

Transcription

1 Introduction to GreenSCOR Introducing Environmental Considerations to the SCOR Model

2 The SCC has introduced environmental management elements into SCOR 9.0. Environmental management is a growing concern in industry. Specifically, the green supply chain SCC leveraged previous research to introduce green into SCOR Processes Best Practices Metrics As a proven Supply Chain Management model, SCOR is ideal as a Green Supply Chain tool. 2

3 Green SCM integrates environmental and supply chain management. Green Supply Chain Management Plan P1 Plan Supply Chain P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns Environmental Management uppliers S Source Make Deliver S1 Source Stocked Products S2 Source MTO Products S3 Source ETO Products Return Source M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order Enable D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products Return Deliver Green Supply Chain Management Custo omers Supply Chain Management Green SCM recognizes the disproportionate environmental impact of supply chain processes in an organization. 3

4 Green SCM leverages the role of the environment in SC value creation. Environmental Value Drivers Tangible Outcomes Green Supply Chain Programs Profitability Asset Utilization Service Level Supply Chain Value Stakeholder Interests Employee Satisfaction Environmental Sustainability Community Quality of Life Customer Reputation Continuity Alliances Technology Intangible Value Drivers 4 Source: Forging New Links, GEMI, 2004

5 The product life cycle is the basis of green supply chain management. Supply Chain in the Environmental Life Cycle Designing the supply chain concurrently with the product is a supply chain management best practice. Concept Design Raw Material Extraction Retail/ Transport Manufacture Transport Consumer Transport Use Disposal Typical Supply Chain Scope 5

6 Now, GSC programs are moving from compliance to value creation. Environmental, Safety, and Health Business Contributions Assure Compliance Minimize Risk Maintain Health Protect the Environment Raise Productivity Enhance Relations Support Innovation Enable Growth Traditional Cost Avoidance Emerging Value Creation 6 Source: Forging New Links, GEMI, 2004

7 GreenSCOR was created to add environmental considerations to SCOR ADUSD L&MR (SCI) created GreenSCOR to understand the relationship between environmental and supply chain management Greater community saw value of the approach GreenSCOR won the SCC 2003 Award for Academic Excellence 2008 GreenSCOR elements added into SCOR 9.0 as integral part of model. ADUSD L&MR (SCI)= Assistant Deputy Under Secretary of Defense, Logistics and Materiel Readiness, Supply Chain Integration 7

8 GreenSCOR is a modification of the SCOR model that includes environmental elements. GreenSCOR Development Plan P1 Plan Supply Chain P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns Suppliers Source Make Deliver S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products S2 Source MTO Products M2 Make-to-Order D2 Deliver MTO Products S3 Source ETO Products M3 Engineer-to-Order D3 Deliver ETO Products Customers Environmental Management Return Source Enable Return Deliver SCOR Model GreenSCOR modifies the existing SCOR structure t to include environmental processes, metrics, ti and best practices. Suppliers Plan P1 Plan Supply Chain P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products S2 Source MTO Products S3 Source ETO Products Return Source M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order Enable P5 Plan Returns D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products Return Deliver GreenSCOR Model tomers Cust GreenSCOR maintains the integrity of the current SCOR model by adding to the existing elements. 8

9 GreenSCOR focuses on the impacts of SCM in each stage of the product life cycle. GreenSCOR Concept Stage Raw Material Extraction Manufacture Retail/ Consumer Use Disposal Green- SCOR Mapping P P P P S D S M D S D S D 9

10 GreenSCOR, integrated with SCOR 9.0, adds Best Practices, Metrics, and Processes to SCOR. Best Practices to green the supply chain (examples) Collaborate with partners on environmental issues Minimize fuel/energy consumption Minimize and reuse packaging materials Metrics to measure the effects of greening (examples) Carbon and Environmental Footprint (proposed) Energy Costs Units per Shipment Processes to capture waste management M17 M1.7, M2.7, M27 M3.8 Waste M38 Disposal EMS=Environmental Management System 10

11 Environmental Best Practices were added throughout SCOR Example Environmental Best Practices Plan Source Make Deliver Return Enable Supply Chain partners collaborate on environmental issues Plans created to minimize energy use Select vendors with EMS system in place Establish environmental partnerships with suppliers Schedule peak production for of-peak energy demand times Minimize packaging material Route to minimize fuel consumption Retrieve packaging material for re-use Do not physically return product beyond economic repair Take back product for recycling Implement an EMS and track environmental performance Maintain equipment for fuel/energy efficiency EMS=Environmental Management System 11

12 Environmental metrics were added throughout SCOR Example Environmental Metrics Plan Source Make Deliver Return Enable Compliance costs Emissions cost per unit % of orders receives with correct packaging % of suppliers with current EMS system Energy costs as a per cent of production costs Waste produced as per cent of product produced Fuel costs as per cent of Deliver costs % of carriers meeting environmental criteria Products returned as percent of products delivered Return products disposed of vs. remanufactured Facility energy costs as per cent of total costs Down time due to non-compliance issues EMS=Environmental Management System 12

13 Proposed environmental footprint metrics leverage SCOR for environmental accounting. Environmental accounting is a current business concern. Carbon and greenhouse gas emissions Other environmental impacts Currently, there is not an agreed upon framework for measuring the environmental footprint of the supply chain. SCOR provides a framework for defining the supply chain network and measuring the environmental impacts. 13

14 Environmental footprint measurement is five metrics repeated at all three SCOR levels. Proposed Environmental Footprint Metrics Metric Units Basis Carbon Emissions Tons CO 2 Equivalent This is the unit of measure currently used for green house gas emissions and is a measure of the climate impact from CO 2 and other global warming air emissions. Air Pollutant t Tons or kg Thi ld i l d i i f j i Emissions This would include emissions of major air pollutants (COx, NOx, SOx, Volatile Organics (VOC) and Particulate). These are the major emissions that EPA tracks. Liquid Waste Tons or kg This includes liquid waste that is either disposed Generated of or released to open water or sewer systems (these emissions are generally listed on water emissions permits). Solid Waste Tons or kg The total solid waste generated by the process Generated The total solid waste generated by the process. % Recycled waste Per cent The per cent of the solid and liquid waste that is recycled. 14

15 Environmental footprint metrics are summed across SCOR levels, like the existing Cost metrics. Level 1 Proposed Environmental Footprint Hierarchy Total Carbon Footprint Air+Liquid+Solid-% Recyc=Total Environmental Footprint Level 2 Tier 3 Tier 2 Tier 1 Your Company Customer S1 M1 D1 S1 M1 D1 D1 S1 M2 D2 S2 S1 M1 D1 S1 M1 D1 Carbon Air Liquid Solid % Recyc Level 3 M2.1 Schedule productio n Activities M2.2 M2.3 M2.4 M2.5 Issue Produce Stage Package Product and Test Product M2.6 Release Product to Deliver Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc Carbon Air Liquid Solid % Recyc 15

16 A Waste Disposal process was added to make to capture waste management M1: Make-to-Stock M1.1 M1.2 M1.3 M1.4 M1.5 M1.6 Schedule Production Activities Issue Product Produce and Test Package Stage Product Release Product to Deliver M1.7 Activities associated with collecting and managing waste produced during the produce and test process including scrap material and non-conforming product. Waste Disposal 16

17 Green additions make SCOR a tool for managing environmental impacts of the supply chain. Processes to define the scope of supply chain operations and supply chain roles. Metrics for assessing and benchmarking the total environmental footprint of the supply chain. Best Practices for reducing the environmental footprint of the supply chain. The GreenSCOR framework is a tool for structuring and communicating environmental supply chain management programs to get faster, repeatable, collaborative results 17

18 Questions?