Using Sustainability to Build a Resilient Supply Chain. Sara Harper, Director of Sustainable Supply-Chain Solutions

Transcription

1 Using Sustainability to Build a Resilient Supply Chain Sara Harper, Director of Sustainable Supply-Chain Solutions

2 Overview Re-defining the S word for business Understanding the New Normal: High Volatility, Radical Transparency, Consumer Issues & Resource Challenges Strategies for securing your supply chain: Integrate sustainability data into your business planning and operational management!

3 The Planet Will Survive. Will You? Sustainability isn t about saving the planet. It is about saving your business. In a business that depends so heavily on natural resources, a food company or cooperative of farmers MUST factor into business growth planning things like: Water Scarcity / Future Availability Water Quality / Regulatory Impacts Climate Change Projections Risk Management 2.0 Customer Data Demands to Connect with Shifting Consumer Values & Preferences

4 Balancing Economic, Environmental & Social Aspects Member of:

5 A Lens to Find Hidden Costs & Connect With Customers More than 4,000 Walmart stores in the U.S. have transitioned to concentrated liquid laundry detergent They also saved a lot of money by reducing: Shelf space Shipping costs By selling only concentrated liquid laundry detergent, Walmart is helping to save significant amounts of natural resources. Over three years in the United States, the commitment is expected to save: more than 400 million gallons of water more than 95 million pounds of plastic resin and more than 125 million pounds of cardboard.

6 Sustainability Data Used As Much for Internal Purposes as External 29 of world s biggest companies are incorporating prices on carbon emissions into long-term financial plans. These shadow prices are used to assess risks of long-term investments and anticipate a future price on GHG emissions. Smaller subset of companies listed above (including Microsoft and Disney) charge their divisions real fees for every ton of carbon emitted by their operations then invest funds in energyefficiency Harvard Business Review, April 2014

7 Understanding the New Normal: High Volatility, Radical Transparency, Consumer Issues & Resource Challenges

8 Perfect Storm of Forces Driving Sustainability from PR to Core Management Concern Fewer Natural Resources More People to Feed Extreme Weather Expanded Buying Power and Shifting Consumer Preferences Supply Chain Disruptions High Volatility Higher Cost of Doing Business

9 Big Data Enabling Impact Forecasting & Supply Mapping

10 Polling Shows Significant Trust Gap Issue Between Public and Food System Right Direction/Wrong Track Source: Center for Food Integrity 2014

11 If Trust is Lacking, Trusted Vetting is Required Over 400 ecolabels exist globally today - a mark of having received the right to display an organization s seal for having complied with its standard. Altogether, Fortune 500 Companies have over 3,900 goals to be tracked.

12 Radically Transparent Environment Is Here Source: Center for Food Integrity 2014

13 Key Food Retailers Evaluating on Sustainability Requires suppliers to answer The Sustainability Consortium (TSC) questions Designates products for special online sustainability store portal Will benchmark suppliers on sustainability using SAP system Committed to sourcing sustainable beef starting in 2016 Will start requiring suppliers to phase out some antibiotics in chicken

14 Securing Your Supply Chain Integrate sustainability data into your business planning and operational management!

15 Take a Team Approach to Educate and Build a New Mindset CSO Introductory Workshop 1-2 day onsite educational workshop Facilitates team understanding of need for action and agreement on next steps Program Design & Implementation Discovery Develop Program Plan Data Collection & Analysis Benchmarking CSO Value Strategies & Reporting Infusing greater value into your operational management and planning by increasing operational efficiency and transforming your business model to address your greatest challenges

16 Make the Shift to Triple Bottom Line Management Financial projections need to talk to your biggest resource challenges Create what if financial scenarios (example: price water according to risk vs current price) Build a new internal scorecard to track the triple bottom line and enable customer reporting options 1, 3, 10 year goals & growth plans

17 Leverage Your Data Collection

18 Develop & Expand Meaningful Relationships

19 Questions? Sara Harper: