John is a twentyfive year supply chain veteran. He has worked in food, beverage, pharmaceutical, automotive, global logistics, along with consumer products and government. During this time he has formed some expertise in sales and operations planning, retail manufacturing, global transportation network management and design, along with being involved with a number of lean Six Sigma deployments, as well as strategic sourcing.



John background was shaped and influenced by his formal and informal education. He has taken executive courses at Dartmouth College and at the Tuck business school. His master degree is from Webster University, where he earned ugg australia outlet a master of arts and business management. He has also been influenced greatly by his military background, various executive training in the Command and General Staff College courses, along with technical training with Defense Acquisition University, PMI, ASQ, ISM, etc.



John leads his firm Supply Chain and Sustainability Advisory Practices. He is proud to say that for two consecutive years, they have operated a carbonneutral company. John background in green supply chain started more than three years ago, when working on a consulting project for a pharmaceutical client. His team was looking at costreduction opportunities in the overall supply chain. In 2007 we started to look ugg boots outlet coupons at carbon and greenhouse gas as an additional cost variable. The team linked up with a softwaredesign company out of Australia and helped them design their product.



Overall, the green supply chain industry sector has a number of challenges. However, it is first important to note that our point of reference in the supply chain starts with the product innovation and marketing impact. We also end at the supply chain with consumer products and product recall. Sales planning is the second function. The third function would be manufacturing planning. We involve procurement (the strategic sourcing organization) and we look at the overall manufacturing and transportation in that process as well. Understanding the seven supply chain function areas is important as we define green supply chain challenges.



The five challenges include 1. Standards 2. Awareness 3. Business Case Development 4. Sustainability Program implementation and 5. Communications planning



Standards is the most confusing aspect for most supply chain and strategic sourcing professionals. The challenge is that each organization may have to comply with all of these standards or rules. They may comply with only part, and the issue faced by manufacturers, retailers and supply chain professionals is that the awareness or knowing what to go after is a challenge.



The first step for someone new to the green supply chain topic is to understand which standard (s) or rules apply. This provides organizational direction and is a necessary first step.



Three years ago one of the first documents that we researched was a report called the Carbon Disclosure report (CDP). Now I think it probably in its third iteration. One interesting point from several reports is the lack of awareness at the Csuite. Green awareness is improving but has been a challenge since we got involved in 2007. Federal Government. For example, in 2011 federal vendors, roughly about six hundred thousand of them, will have to show evidence that they measured their greenhouse gas emissions and have water optimization plans in place. Awareness is changing.



Corporate social responsibility, competitive pressures, as well as where to use limited capital will be a choke point for multinational supply chains in the future. Strategic planners will likely



struggle with business cases as best practices are shared. One interim solution as new business models mature involves integrating tying carbon to future supplier contract. We found that the implementation is a challenge because organizations don know which rules or standards to follow. Greenhouse Gas protocol and the January 2011 requirement for federal contractors to comply with federal standards. In the book we divide implementation into three phases:



2. Purchase energy (water included)



3. All indirect emissions (all indirect carbon emissions, such as purchasing, outsourced activities, travel, and looking at employee commute.)



The environmental, sustainability, green space is very broad. It encompasses everything from renewable energy to various employee commute emissions and industry specific operational definitions. Organizations have to develop a communication strategy early in Green Supply Chain planning process. The communications strategy is keep to driving long term compliance and reducing emissions.



1. The first step is to understand the organizations compelling reasons why a carbon footprint or greenhouse gas initiative is required. There is no need going down this path if the sales and marketing organization are not on board. The bottom line is that most organizations are driven by profit. If the sales, marketing and supply chain team vision vary, then the supply chain organization needs to take a more measured approach. Don jump in with both feet if sales aren on the bus. Obviously all organizations are different, but this is one item that John would recommend.



2. John also recommends taking a long look at integrating sustainability and supply chain deployment planning. The rationale for this is that sustainability professionals have a defined methodology, moderate pace and much narrower perspective than supply chain leaders by nature of their corporate mission. John recommends that both groups come together and plan a deployment and understand the challenges of each organization.



3. It is also important to understand what the right implementation methodology is for the program you want to pursue. John group used a, fourstep methodology. His team methodology included planning, being the first step. The second step was measurement and analysis. The third was to implement solutions and then the fourth was actually control. Control is a very broad step, but as they looked at a couple different standards, they found that it is something that worked for them. It is something that works fairly well with their clients. It is a lot more complex when you work in multinational but it does work at any local level.



4. The fourth recommendation is to develop a sustainability project protocol, which ties into the point about sustainability and supply chain planning. It involves working with supply chain organizations and with sustainability groups using a formal project implementation plan with a full length protocol. (similar to what you do in IT). It not difficult to do, but it is something John recommends because we want to make sure that we are all going the same direction. We want to see deliverables. The project management institute has a very strong protocol in implementation.



5. Two other important recommendations; develop a score card with appropriate metrics for the sustainability and supply chain teams. Also create a talent development plan. Both recommendations tie together because these topics continue to mature.



6. Defining the right communication tool and model is key for long term success. Each organization has their own communication models and best methods. John recommends that you go back and take a look at that as you start to develop a sustainability green supply chain plan.



7. Finally, help influence the appropriate industry professional services group. These groups include ISM, APICS, CSCMP etc. These groups should all go in the same direction to benefit the masses. John recommends that we think big picture and help the professional service industries go the same direction. If we don this will hurt the competitiveness of North America supply chains as Europe continue to implement carbon trading schemes.



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