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February 2013
Jay Edwards
Best Practices in Supply Chain
Engagement
Career & Company History
Environmental
Engineering
BS & MS
1993
Kraft Foods
1993 - 2011
Sustainable
Packaging Expert
(2007 – 2011)
- Tools & Metrics
- Design Platform
Development
- Industry
Representation
Pack2Sustain, LLC
2011 Launch
Partners / Clients
- ConAgra Foods
- PTIS / HAVI
- Earth911
- Clorox
- Sustainable
Packaging
Alliance
2
Supply Chain Engagement
We’re all connected – make the most of it
3
Engagement is the Fruit of
Collaboration…
4
… but Silos Are Comfortable - or
Enforced
5
How to Break Through?
Leverage…
• Organizational Structure
• Industry Best Practices
• External Resources / Relationships
… as is fitting w/ your project or position in the organization
6
Organizational Structure
… & Internal Collaboration
7
Community of Practice Model
(Formal)
Subject
Expert
Business
Unit
Lead
Business
Unit
Lead
Business
Unit
Lead
Business
Unit
Lead
8
Community of Practice Model
(Formal)
Expert may be the only subject ‘owner’, which can
limit penetration of change into the organization
Cultural influence is largely ‘bottom-up’, with the
associated limitations on effectiveness
Expert / BU Lead network establishes clear points of contact &
helps to drive strategy
Membership is typically passion-driven
Best practices can be shared quickly and easily
Simplifies benchmarking and tracking against corporate goals
9
Community of Practice Model
(Informal)
Sharing Common Expertise, Solving Common Problems
• Traditional Communities of Practice are
formed by industry peers – within or across
organizations – who are tied by common
expertise / passion
• CoPs can be used powerfully to:
• Solve problems quickly
• Build and exchange knowledge
• Enable execution of company strategy
Source: Harvard Business Review
10
Community of Practice Model
(Informal)
Truly informal CoPs function only so long as they are
useful to their members
Benefits experienced by the employer(s) may be
delayed and non-linear
CoPs can ignite members’ creativity and tap into
entrepreneurial drives
Significant professional skill development opportunity
Talent recruitment and retention benefits
11
Employee-Reward Model
Recognition-Driven Collaboration
• ConAgra Foods began an innovation-in-operations
program in 1992
• Ongoing objectives are waste and energy reduction at
production facilities, company-wide
• Bottom-up ideas are encouraged, with visible
recognition from top management
• Share-out of concepts has expanded their adoption
Source: GreenBiz.com
12
Employee-Reward Model
‘Voluntary’ programs may experience variable interest
/ popularity
Senior leadership can demonstrate support without
mandates
Employees are engaged and gain visibility
Opportunity for best practices to permeate company
culture organically
13
Industry Best Practices
… & External Collaboration
14
PET Technology Collaborative (2012)
Source: Packaging Digest
Companies Placing a Common Strategic Bet
The Objective
• Evolve Coca-Cola’s partially plant-based PET to a solution
entirely sourced from plants, benefiting brand-owner
stakeholders
The Approach
• Shared commitment between The Coca-Cola Co., Nike Inc.,
Ford Motor Co., H. J. Heinz Co. and Proctor & Gamble to:
o Expand research knowledge, accelerate technology development,
and develop commercial solutions
15
Crowdsourcing - Direct Line to Out-of-Box
Thinking
Source: GreenBiz.com
Unilever’s Sustainable Living Lab (2012)
The Objective
• Position the company to achieve its 2020 Sustainability targets
The Approach
• Engage select thought leaders across civil society, government
and industry through a 24-hour moderated online platform
o Four forums:
1. Sustainable Sourcing
2. Sustainable Production & Distribution
3. Consumer Behavior Change
4. Recycling & Waste 16
Crowdsourcing - Direct Line to Out-of-Box
Thinking
Source: GreenBiz.com
Unilever’s Sustainable Living Lab (2012)
The Results
• 3,900 posted comments captured
o Dialogue concerning Consumer Behavior Change was the
most robust
o Addressing design from a systemic – vs. tactical –
approach was stressed
o Re-thinking of delivery systems was common
Overall Expectation Going Forward: Action
17
Sugar Beet Pulp: From Burden to Opportunity
The Objective
• The USDA and Washington State University sought to
develop a profitable use for sugar beet pulp, a waste
product from sugar extraction
The Approach
• Coextrusion of beet pulp with PLA yielded a biodegradable
thermoplastic composite w/ mechanical properties similar
to polystyrene and polypropylene
o PLA is itself derived from the sugars in beets, corn, sugarcane or
switch grass
Government as Stakeholder: United
States
Source: Packaging Digest
18
Government as Stakeholder: Spain
Source: Environmental Leader
Biodegradable Plastic from Whey Protein
The Objective
• The EU is addressing the challenge of finding new uses for the 50
million tons of whey produced by European cheese factories
annually
o While 60% is currently reused, the balance is discarded
The Approach
• IRIS, a Barcelona-based research institute, has extracted pure whey
proteins via spray-drying
o These proteins are then used in thin layers to produce plastic films
o Dissolution of the films in enzyme-activated water has been confirmed by
the European Commission
• Industrial scale-up of film and tray production is targeted for 2013
19
OfficeMax ‘Boomerang Box’
The Objective
• Reduce box consumption amongst participating businesses customers
The Approach
• Reuse & recycling program for OfficeMax delivery boxes
The Details
• The reusable, stackable delivery boxes are retained at customer facilities
and back-hauled at a subsequent delivery date. An 80% reduction was
achieved after the June 2012 start in Seattle, WA
“The boomerang box was piloted in Seattle because the
city has a very large number of customers that
demand a reusable shipping carton solution.“
- OfficeMax PR Manager Nicole Miller
Source: GreenBiz.com
20
Safeway Reusable Product Containers
Source: Green Retail Decisions
The Objective
• Corrugated elimination (17 million pounds achieved)
The Approach
• Expand RPC use beyond bread, milk and soda to include fresh wet-pack
produce (items that are kept on ice until they reach the store)
• RPCs can be stacked densely, aiding in back-haul efficiency
The Details
• Supply chain engagement was crucial, as Safeway’s growers and
distributors needed to commit to RPCs
• Safeway’s major supplier of RPCs is IFCO Systems
o IFCO handles all container logistics, from
manufacture to cleaning to re-entry into the supply
chain
21
External Tools & Resources
Collaboration Enablers
22
Packaging Impact Quick Evaluation
Tool
• PIQET was developed and is distributed by the
Sustainable Packaging Alliance
• Pack2Sustain is a Channel Partner with SPA, supporting
the expansion of PIQET in North America
• PIQET is customized specifically for
packaging applications, and can assess
impacts associated with design features
across relevant material supply chains
• LCI datasets from multiple global regions are
available, and are regularly updated23
PIQET: Analysis that Spans the Supply
Chain
Material
manufacture
Converting
Transport to
filler
Filling
Transport to
retailer
Use Waste disposal
Sourcing / Conversion Filling / Transportation Consumer Phase
PIQET does not model the
use phase, but does
address the performance
of reusable packaging
24
PIQET: Illustrative Reusable
Packaging Example
25
PIQET: Illustrative Reusable
Packaging Example
26
PIQET: Enabling Collaboration
27
Pack2Sustain Custom Technology
Scoping
Building Technology Pipelines
• A technical service rooted in over 19 years of
CPG R&D experience and on demonstrated
thought leadership in Sustainable Packaging
• Customizable approach, based on cost targets,
environmental-performance goals or material-
sourcing criteria
• The interactive service links seamlessly into
existing project teams
28
Pack2Sustain Design-for-Recovery
Report
• Referenced summary of the best available industry design
guidance on…
o Recyclability
o Compostability
• Structured to deliver clear, actionable direction to packaging
designers
• Customized format to maximize day-to-day utility
• Ideal for packaging portfolio assessments
29
Pack2Sustain Design-for-Recovery
Report
30
Pack2Sustain Design-for-Recovery
Report
31
Consumers’ Voice: “Please Help Me” | PRS*
Packaging & the Environment Study, 2012
Environmental Messaging  Stated Purchase Preference
Favorable - 59%
Not Favorable
Drivers When Consumers Fail to Recycle
Forget - 44%
Misc.
Opportunity for clearer
recyclability messaging
*Perception Research Services International
32
Thank You
jay.edwards@pack2sustain.com
608.332.2281
http://www.pack2sustain.com/
33

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Best Practices in Supply Chain Engagement

  • 1. February 2013 Jay Edwards Best Practices in Supply Chain Engagement
  • 2. Career & Company History Environmental Engineering BS & MS 1993 Kraft Foods 1993 - 2011 Sustainable Packaging Expert (2007 – 2011) - Tools & Metrics - Design Platform Development - Industry Representation Pack2Sustain, LLC 2011 Launch Partners / Clients - ConAgra Foods - PTIS / HAVI - Earth911 - Clorox - Sustainable Packaging Alliance 2
  • 3. Supply Chain Engagement We’re all connected – make the most of it 3
  • 4. Engagement is the Fruit of Collaboration… 4
  • 5. … but Silos Are Comfortable - or Enforced 5
  • 6. How to Break Through? Leverage… • Organizational Structure • Industry Best Practices • External Resources / Relationships … as is fitting w/ your project or position in the organization 6
  • 7. Organizational Structure … & Internal Collaboration 7
  • 8. Community of Practice Model (Formal) Subject Expert Business Unit Lead Business Unit Lead Business Unit Lead Business Unit Lead 8
  • 9. Community of Practice Model (Formal) Expert may be the only subject ‘owner’, which can limit penetration of change into the organization Cultural influence is largely ‘bottom-up’, with the associated limitations on effectiveness Expert / BU Lead network establishes clear points of contact & helps to drive strategy Membership is typically passion-driven Best practices can be shared quickly and easily Simplifies benchmarking and tracking against corporate goals 9
  • 10. Community of Practice Model (Informal) Sharing Common Expertise, Solving Common Problems • Traditional Communities of Practice are formed by industry peers – within or across organizations – who are tied by common expertise / passion • CoPs can be used powerfully to: • Solve problems quickly • Build and exchange knowledge • Enable execution of company strategy Source: Harvard Business Review 10
  • 11. Community of Practice Model (Informal) Truly informal CoPs function only so long as they are useful to their members Benefits experienced by the employer(s) may be delayed and non-linear CoPs can ignite members’ creativity and tap into entrepreneurial drives Significant professional skill development opportunity Talent recruitment and retention benefits 11
  • 12. Employee-Reward Model Recognition-Driven Collaboration • ConAgra Foods began an innovation-in-operations program in 1992 • Ongoing objectives are waste and energy reduction at production facilities, company-wide • Bottom-up ideas are encouraged, with visible recognition from top management • Share-out of concepts has expanded their adoption Source: GreenBiz.com 12
  • 13. Employee-Reward Model ‘Voluntary’ programs may experience variable interest / popularity Senior leadership can demonstrate support without mandates Employees are engaged and gain visibility Opportunity for best practices to permeate company culture organically 13
  • 14. Industry Best Practices … & External Collaboration 14
  • 15. PET Technology Collaborative (2012) Source: Packaging Digest Companies Placing a Common Strategic Bet The Objective • Evolve Coca-Cola’s partially plant-based PET to a solution entirely sourced from plants, benefiting brand-owner stakeholders The Approach • Shared commitment between The Coca-Cola Co., Nike Inc., Ford Motor Co., H. J. Heinz Co. and Proctor & Gamble to: o Expand research knowledge, accelerate technology development, and develop commercial solutions 15
  • 16. Crowdsourcing - Direct Line to Out-of-Box Thinking Source: GreenBiz.com Unilever’s Sustainable Living Lab (2012) The Objective • Position the company to achieve its 2020 Sustainability targets The Approach • Engage select thought leaders across civil society, government and industry through a 24-hour moderated online platform o Four forums: 1. Sustainable Sourcing 2. Sustainable Production & Distribution 3. Consumer Behavior Change 4. Recycling & Waste 16
  • 17. Crowdsourcing - Direct Line to Out-of-Box Thinking Source: GreenBiz.com Unilever’s Sustainable Living Lab (2012) The Results • 3,900 posted comments captured o Dialogue concerning Consumer Behavior Change was the most robust o Addressing design from a systemic – vs. tactical – approach was stressed o Re-thinking of delivery systems was common Overall Expectation Going Forward: Action 17
  • 18. Sugar Beet Pulp: From Burden to Opportunity The Objective • The USDA and Washington State University sought to develop a profitable use for sugar beet pulp, a waste product from sugar extraction The Approach • Coextrusion of beet pulp with PLA yielded a biodegradable thermoplastic composite w/ mechanical properties similar to polystyrene and polypropylene o PLA is itself derived from the sugars in beets, corn, sugarcane or switch grass Government as Stakeholder: United States Source: Packaging Digest 18
  • 19. Government as Stakeholder: Spain Source: Environmental Leader Biodegradable Plastic from Whey Protein The Objective • The EU is addressing the challenge of finding new uses for the 50 million tons of whey produced by European cheese factories annually o While 60% is currently reused, the balance is discarded The Approach • IRIS, a Barcelona-based research institute, has extracted pure whey proteins via spray-drying o These proteins are then used in thin layers to produce plastic films o Dissolution of the films in enzyme-activated water has been confirmed by the European Commission • Industrial scale-up of film and tray production is targeted for 2013 19
  • 20. OfficeMax ‘Boomerang Box’ The Objective • Reduce box consumption amongst participating businesses customers The Approach • Reuse & recycling program for OfficeMax delivery boxes The Details • The reusable, stackable delivery boxes are retained at customer facilities and back-hauled at a subsequent delivery date. An 80% reduction was achieved after the June 2012 start in Seattle, WA “The boomerang box was piloted in Seattle because the city has a very large number of customers that demand a reusable shipping carton solution.“ - OfficeMax PR Manager Nicole Miller Source: GreenBiz.com 20
  • 21. Safeway Reusable Product Containers Source: Green Retail Decisions The Objective • Corrugated elimination (17 million pounds achieved) The Approach • Expand RPC use beyond bread, milk and soda to include fresh wet-pack produce (items that are kept on ice until they reach the store) • RPCs can be stacked densely, aiding in back-haul efficiency The Details • Supply chain engagement was crucial, as Safeway’s growers and distributors needed to commit to RPCs • Safeway’s major supplier of RPCs is IFCO Systems o IFCO handles all container logistics, from manufacture to cleaning to re-entry into the supply chain 21
  • 22. External Tools & Resources Collaboration Enablers 22
  • 23. Packaging Impact Quick Evaluation Tool • PIQET was developed and is distributed by the Sustainable Packaging Alliance • Pack2Sustain is a Channel Partner with SPA, supporting the expansion of PIQET in North America • PIQET is customized specifically for packaging applications, and can assess impacts associated with design features across relevant material supply chains • LCI datasets from multiple global regions are available, and are regularly updated23
  • 24. PIQET: Analysis that Spans the Supply Chain Material manufacture Converting Transport to filler Filling Transport to retailer Use Waste disposal Sourcing / Conversion Filling / Transportation Consumer Phase PIQET does not model the use phase, but does address the performance of reusable packaging 24
  • 28. Pack2Sustain Custom Technology Scoping Building Technology Pipelines • A technical service rooted in over 19 years of CPG R&D experience and on demonstrated thought leadership in Sustainable Packaging • Customizable approach, based on cost targets, environmental-performance goals or material- sourcing criteria • The interactive service links seamlessly into existing project teams 28
  • 29. Pack2Sustain Design-for-Recovery Report • Referenced summary of the best available industry design guidance on… o Recyclability o Compostability • Structured to deliver clear, actionable direction to packaging designers • Customized format to maximize day-to-day utility • Ideal for packaging portfolio assessments 29
  • 32. Consumers’ Voice: “Please Help Me” | PRS* Packaging & the Environment Study, 2012 Environmental Messaging  Stated Purchase Preference Favorable - 59% Not Favorable Drivers When Consumers Fail to Recycle Forget - 44% Misc. Opportunity for clearer recyclability messaging *Perception Research Services International 32