1. Developing Sustainable Supply Chains Mary Margaret Rogers Anderson School of Management University of New Mexico

2. Sustainability in Supply Chain Management Definitions: Supply chain management encompasses all activities associated with the flow and transformation of goods from the raw materials stage through the end user, as well as the associated information flows. (CSCPM) Sustainable supply chain management requires that sustainability criteria be met while maintaining competitiveness through meeting customer needs. (Seuring and Müller, 2008)

3. Why Should Supply Chains Try to Be Sustainable? Supply chains are boundary spanning – Coordination across normal boundaries means that many aspects of sustainability may be affected – From initial processing of RM to consumption by final customer

4. Why Should Supply Chains Try to Be Sustainable? Outsourcing Watchdog groups Government requirements

5. Why Should Supply Chains Try to Be Sustainable? Reduce cost and wastes Manage risks Create distinguishing (sellable) reputation Reinforce shareholder value

6. Issues affecting sustainability Product design Product returns Length of product life cycle Extension of product life cycle End of life disposal Packaging Source reduction Recycling Material substitution Waste disposal Refurbishing Repair Remanufacturing

7. Pumas Clever Little Bag

8. Sustainability in Supply Chain Management Use of the triple bottom line – Social Manage risks to organizational reputation Create competitive advantage – Environmental Regulatory issues Risk of harm from usage, disposal, packaging, shipping – Economic Sustainability can be cost efficient Sustainability can enhance shareholder value

9. Adapted from: Carter, CR, and DS Rogers. 2008. A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management 38 (5):360-387. Environmental Performance Social Performance Economic Performance Sustainability Good? Better Best Better The Triple Bottom Line

10. Triple Bottom Line Supporting Factors Transparency and Risk Management Anticipate harm from activities Stakeholder Engagement Supplier Operations Strategy Sustainability as part of an integrated strategy Organizational Culture Deeply Ingrained Organizational Citizenship Values and Ethics

11. Sustainable Supply Chains at Walmart November 1, 2006 Walmart introduced its Sustainable Packaging Scorecard Goal: Reduce packaging in supply chain by 5% by 2013 Predicted Results (Walmart U.S. only): 667,000 metric tons of CO 2 not emitted 213,000 trucks off the road annually 66.7 million gallons of diesel fuel saved

12. Sustainable Supply Chains at Walmart The 7 Rs of Sustainable Packaging Remove Reduce Reuse Renew Recycle Revenue Read

13. Sustainable Supply Chains at Walmart When Wal-Mart tells a supplier that it wants a change in packaging, that supplier will change all its packaging…Wal-Mart has the potential to have a tremendous impact on Americas environmental footprint. David Willett, spokesman for The Sierra Club

14. Sustainable Supply Chains at Walmart July 16, 2009: Walmart announced it would develop a Sustainability Index. Step 1: Supplier Assessment Step 2: Life cycle Analysis Database Step 3: Tool for Consumer

15. Sustainable Supply Chains at Walmart February 25, 2010: Walmart announced plans to eliminate 20 million metric tons of greenhouse gas emissions from the global supply chain by the end of 2015. Goal: Reduce energy use and cost for suppliers, Walmart, and customers.

16. Sustainable Supply Chains at Walmart

17. Reverse Supply Chains A reverse supply chain is a means of enhancing sustainability by retrieving products from customers. Safe end-of-life disposal Refurbishing Reuse for spare parts Value in recycling

18. Whats different about reverse supply chains? Forward Supply ChainReverse Supply Chain Planning: – Forecasts Location: – One to many transportation Costs: – Well-defined – Focus on product ordering costs Visibility – High priority Planning: – Reactive Location: – Many to one transportation Costs: – Not easily defined – Additional costs not easily justified Visibility – Low priority

19. Benefits of Reverse Supply Chains Economic – Maintain product valuereuse – Continuous improvement Ethical – Customer safety – Customer satisfaction Environmental – Protect and safeguard sustainability Legal – Global rules and regulations (WEEE Act)

20. Reverse Supply Chain Challenges Operational – Information and process flow – Roles – Product Financial – Costs Technological – Information technology systems