Achieving Real Results with Sustainable Supply Chain Management Bob DeVos Senior Vice President...
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Transcript of Achieving Real Results with Sustainable Supply Chain Management Bob DeVos Senior Vice President...
Achieving Real Results with Sustainable Supply Chain Management
Bob DeVosSenior Vice PresidentGENCO Supply Chain Solutions
GENCO – At a Glance… North America’s 2nd largest 3PL
◦ 38,100,855 square feet under management Pittsburgh based, 112 year old, privately held, non-asset-based 2009 gross revenue : $840+ million 130+ operations throughout U.S. and Canada 7,000+ award-winning teammates Over $1 billion in freight managed annually Visibility to $3.5 billion in freight annually Liquidates $6 million worth of product daily The leader in reverse logistics Innovative leader in supply chain technology, R&D and implementation Formal process to provide initial and ongoing value – 6Sigma / Lean
Inbound Vendor Compliance
GENCO’s Supply Chain SolutionSolution Type
Finished Goods to Customer or Distribution
DC Distribution
Returns
Refurbish & Liquidation
Manufacturing / Distribution
Customers/Inter-plant
B to B and B to C
Distributio
n
Customer Direct
Returns
Business Trends
Shipment volume is increasingCapacity is TighteningCarrier Rates going upOcean Carriers - significant increasesCustomers continue to look for cost savingsSustainable Supply Chain Management
Supply Chain Decarbonization Opportunities
Energy Efficient Buildings* Clean Vehicle Technologies* Reverse Logistics / Recycling* Despeeding the Supply Chain* Enabling Low Carbon Sourcing: Agriculture Optimized Networks* Packaging Design Initiatives* Enabling Low Carbon Sourcing: Manufacturing Training and Communication* Modal Switches* Near shoring Increased Home Delivery Reducing Congestion
“Role of Logistics and Transport in Reducing Supply Chain Carbon Emissions”
World Economic Forum / Accenture 2009* GENCO Role
Lighting Control and Retrofit• LightMiser technology• Motion sensitive control
• Retrofit: 8 facilities Hi Pressure Sodium / Metal halide Hi Efficiency Fluorescent
Results:
Saved over 4 million KwH electricity
$908,700 in energy costs saved
ROI 1.6 years
Equivalencies:• 14.9 railcars of coal burned,
2857 metric tons of CO2
• Annual CO2 emissions of 523 passenger vehicles• 649 acres of pine trees to sequester / absorb
annually
Alternative FuelsHydrogen Fuel Cell – Case Study
19% decrease in annual operating costs
Hydrogen-powered Industrial VehiclesLeading the way to mass market
Only byproduct is water and heat
Requires CapEx InvestmentCosts
~$31,000 per Fuel CellFederal Tax Credit thru 2016 ~ 30% of purchase priceIndividual state grant money may also be available
Ohio Third Frontier Fuel Cell Program >$38M; $1M to Crown for lift truck battery replacement researchBottom-line
Pure economics still a ROI challenge – this is changingJustification by productivity improvements and cost avoidance associated with lead/acid batteries
Scenario 2 Results:Minooka, IL; Carlisle, PA; Atlanta, GA and Phoenix, AZ
8
Location Total Weight Total Shipments Plant to DC DC to Customer Variable Cost Fixed Cost Total CostMinooka, IL 163,910,892 12,200 $1,435,894 $6,166,976 $2,012,148 $3,025,554 $12,640,572Carlisle, PA 88,713,543 8,355 $3,180,712 $2,570,024 $991,144 $2,126,728 $8,868,608Phoenix, AZ 85,824,935 7,355 $5,934,803 $3,027,768 $1,034,212 $1,273,789 $11,270,572Atlanta, GA 77,947,210 5,850 $2,011,010 $2,091,323 $795,599 $1,943,372 $6,841,305
Totals 416,396,580 33,760 $12,562,419 $13,856,092 $4,833,103 $8,369,443 $39,621,056
Freight Costs Variable Costs
GENCOSustainability Impact
2009 Savings = 8,271 Tons◦14,019,222 KwH of energy◦39,472 barrels of oil◦237,436,700,000 BTUs of energy◦92,394 cubic yard of landfill space◦69,309 trees◦28,539,000 gallons of water◦1,680 pounds of air pollutants prevented
Green Supply Chain
• Align with business goals
• Set Baseline / Metrics
• Process improvement
• Think holistically
• Plan for the long term
Considerations Benefits
• Reduced wastes
• Reduced health /safety costs
• Better working conditions
• Reduced water, energy, fuel
and transportation costs
• Regulatory compliance
• Enhanced reputation
For more information… “The Lean and Green Supply Chain – A Practical Guide for Materials
Managers and Supply Chain Managers to Reduce Costs and Improve Environmental Performance” - EPAhttp://www.epa.gov/opptintr/library/pubs/archive/acct-archive/pubs/lean.pdf
Green Supply Chain Network – GreenSCM.com Greenbiz.com 2nd Annual Green Supply Chain Summit – April 09 – London
4th Sustainable Supply Chain Summit – March - Brussels GreenSCOR – Supply Chain Council
www.supply-chain.org/
Discussion & Follow-upBob DeVos
Senior Vice President(920) – 593-8942