AVEDA NRE 701 Final Presentation Nathan Arbitman Tony Baptista Ted Ekkers Jon Forrester Heather Kirshman April 19, 2004

Agenda Why? (Jon) Background (Jon) Methodology & Timeline (Tony) Budget & Logistics (Ted) Results & Expected Impact (Nathan) Testimony (Heather) Progress to Date (Heather)

Why?

Why this project: unanswered questions Aveda is regarded as a preeminent “sustainable enterprise,” what are the best practices? What is the Global Warming impact of delivering a bottle of shampoo to the salon? What logistics changes (ordinary process improvements) could reduce the Greenhouse Gas profile? What do logistics management and industrial ecology tell us about the future of ecological transport?

Background Aveda Corporation (Aveda) is a division of Estée Lauder and a manufacturer, wholesaler and retailer of plant, flower and mineral-based salon, personal-care, and lifestyle products. Products are sold through a network of Aveda-branded cosmetology institutes, independent hair salons and spas, and Aveda- owned retail stores. We are working with Aveda’s executive director of Environmental Sustainability and a VP of packaging.

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Timeline Ambitious but doable

Methodology Phase 1 (Mar 1 – Jun 30) –Collect company data –Plant/Warehouse Tour –Interview Stakeholders –Map out material and information flows Phase 2 (Jul 1 – Sep 30) –Build models to quantify the GHG and energy impact of transportation and secondary and tertiary packaging. –Compare industry best practices Phase 3 (Oct 1 – Jan 31) –Evaluate options

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Budget Project Costs Research and Supply Costs 1,000 Student Hourly Costs 9,400 Center for Sustainable Systems (CSS)5,000 Airfare for 5 to $400/person2,000 Room & Board – 3 days1,473 Vehicle Rental + Parking114 Total Project Expenses18,987 University Overhead – Sponsored 58% 11,013 TOTAL30,000

Working Arrangement with CSS Center for Sustainable Systems (CSS) –Eliminates time required to learn Sima Pro software –Provides expertise in setting parameters and ensuring completeness of model –Adds resources during summer CSS will provide the expertise needed to complete a robust model in a timely matter Phase 1: Map Masters Team CSS Phase 2: Model AvedaSuppliersStandards

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Results and Expected Impact Final work products will include: –Presentation to Aveda executives –Master’s Project Three-to-five major recommendations for alternative product delivery options Environmental, financial, and customer impact assessment If feasible, an implementation plan for key recommendations, including potential points of resistance Implications –No other projects like this have been done –Other companies will be able to replicate –Cost-effective improvements to product delivery systems have huge potential to reduce GWP Charting new territory in the green logistics field

You

Testimonial

Progress to Date Established relationship with client Finalized scope and expectations with Aveda Begun initial research Added co-advisor Project is off to a good start

Q & A

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