THE GREEN SUPPLIERS NETWORK- MICHIGAN Presented for: Summer 2005 Conference Great Lakes Regional Pollution Prevention Roundtable August New York Academy of Sciences New York, New York

2 Summary The Partners The Goals The Process State P2 Program Support The Supplier Framework The Challenges The Rewards

3 Partners EPA Headquarters National Institute of Standards and Technology (NIST) EPA, Region 5 Source Reduction Assistance Grant, to support “Creating a Model for Pollution Prevention Diffusion in the Office Furniture Industry” 3 Office Furniture Manufacturers in West Michigan, Steelcase, Herman Miller and Haworth Michigan Manufacturing Technology Center (MMTC)- Right Place Inc., Grand Rapids, MI Business and Institutional Furniture Association, International (BIFMA) Michigan Department of Environmental Quality (MDEQ)

4 Project Goals Performance Collaboration Coordination Recognition Identification Innovation Measurement Creation “ Unless commitment is made, there are only promises and hopes... but no plans ”. Peter Drucker

5 The Process Voluntary Customer Support Supplier Engagement Agency Coordination Technical Review Confidentiality

6 The Technical Review Learning to See - Learning to Connect Product Level Value Stream Map Defects Overproduction Waiting Non-utilized Talent Transportation Inventory Motion Extra Processing Water Air Solids Time Energy Lost Value Improved Productivity Efficient Resource Use Lost Value Hidden Associated Costs

7 State Program Support Retired Engineer Technical Assistance Program (RETAP) RETAP Internship Program Small Business P2 Loan Program RETAP P2 Technical Demonstration Grant Michigan Business Pollution Prevention Partnership (MBP3) Clean Corporate Citizen (C3) Environmental Management Systems (EMS)

8 COST COMPETITIVE EDGE ENVIRONMENTAL FOOTPRINT LEAN MFG. EFFICIENCY CUSTOMER SATISFACTION BUSINESS STRATEGY & INFRASTRUCTURE OPERATIONS & LOGISTICS MARKETING & SALES PROFIT PRODUCT DESIGN & DEVELOPMENT MANUFACTURING The GSN Business Case Survival Wheel OPPORTUNITY GROWTH

9 The Challenges Speak the same language Build trust Maintain a consistent message Maximize your resources “Do what you can, with what you have, where you are.” Theodore Roosevelt

10 The Rewards Creates a comfort zone Connections are supported Opportunities develop Business growth and innovation occurs “We can believe we know where the world should go. But unless we’re in touch with our customers, our model of the world can diverge from reality. There’s no substitute for innovation, of course, but innovation is no substitute for being in touch either.” Steve Baller, CEO, Microsoft

11 Business Growth And Innovation A Business Case: Energy Efficiency A Business Case: Logistics/Transportation “It was our duty to expand. Those who cannot or will not join us are to be pitied. What we want to do, we can do and will do, together. A glorious future!” Ingvar Kamprad, Founder CEO, IKEA

12 Energy Efficiency – Herman Miller/Light Corporation Customer Challenge – Reduce energy consumption while maintaining or increasing light levels in a production space. Supplier Solution – High bay, energy efficient, lightweight fixture replacement. Customer Results – Energy savings realized: $28,276/yr; light levels average increase 21% Supplier Results – New Business Growth

13 Logistics/Transportation- IKEA/Commercial Transportation, Inc Customer Challenge – We shall become one of the most resource efficient transport buyers in the world, focusing on energy, engines and efficiency. Supplier Solution (SmartWay) – In fleet management will include improved aerodynamics, idle reduction, low-viscosity lubricants, reducing highway speed, automatic tire inflation systems, and drivers training Customer Results – Marketing global environmental protection and social responsibility, conditional environmental requirements in contract, reduced environmental impact

14 Logistics/Transportation (continued) Supplier Results – Streamlined aerodynamic tractor/ reduces fuel costs by over$800/eliminate 5 metric tons of CO2/year Supplier Results – Auxiliary Power Units (APUs) instead of idle/reduce fuel use by 75%, eliminates $2000 fuel cost and $300 engine maintenance cost/year Supplier Results – Reducing the maximum speed of a typical long-haul truck to 60mph/$3,300 fuel cost savings/year Fleet Results – Individual haulers compete to reduce fuel use/ improve efficiency/ save $$/ protect environment

15 For more information contact: Laura Rauwerda, Senior Environmental Quality Analyst, MDEQ