Fmi final gen merch cat man webinar[1]
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Fmi final gen merch cat man webinar[1]
- 1. Sustainable Sourcing for GENERAL MERCHANDISE Category Managers: Using the FMI Guide Five Winds International & Ecos US February 9, 2011
- 2. Acknowledgements Produced “by the industry for the industry” Thank you to: United Soybean Board FMI Sustainability Executive Committee and Council Specifically those that helped to launch the development of the guide: Suzanne Forbes (Wakefern), Harriet Hentges (Ahold USA), Tom McIntyre (SUPERVALU), Karen Meleta (Wakefern), Tracy Taylor (Ahold USA) and Jeanne von Zastrow (FMI) All those who participated in our Guide survey and submitted additional comments
- 3. Background on Guide & Presentation This presentation accompanies the document: Sustainability on the Shelves A Guide for Category Managers Please customize the Guide and these slides for your own use
- 4. Agenda Learning Objectives What is Sustainability? Sustainable Sourcing Decision Framework for General Merchandise Take-Home Messages Questions
- 5. Learning Objectives Provide good working understanding of sustainability in the food retail sector Identify key sustainability issues specific to each product category Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products
- 6. What is Sustainability? Sustainability “Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI
- 8. Availability
- 9. Price
- 10. ServiceSustainable Sourcing SUSTAINABLE ATTRIBUTES
- 11. Sustainability is a Strategic Business Issue 300% Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research $73M Additional profit generated by Marks and Spencer’s Plan A sustainability strategy in 2009. M&S 2010 Progress Report
- 12. Consumers are looking for “green” Source: 2009 GMA/Deloitte Green Shopper Study
- 13. Stepwise approach to buying more sustainable products
- 14. Step 1: Know Your Priorities What are your company’s priorities? Sustainable sourcing strategy Company sustainability priorities Product priorities
- 15. What is a Sustainable Product?
- 16. How do these terms relate to sustainability? recyclable less toxics organic local eco-labelled less packaging BPA-free recycled content packaging fair trade durable use less resources
- 17. What are the Sustainability Issues for General Merchandise?
- 18. Carbon Footprint A carbon footprint includes all greenhouse gases emitted by a product’s production, transportation, consumption, and end of life. Final carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger See Guide, page 22 Sources: http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html
- 19. Water Footprint 53 gallons! See Guide, page 22 Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html
- 20. Waste Footprint Americans generate over 38 million tons of hazardous waste per year, and chemical manufacturing accounts for 55% of that waste See Guide, page 23 Source: http://www.epa.gov/epaoswer/hazwaste/data/br05/national05.pdf
- 21. Packaging Almost 1/3 of the waste generated in the U.S. is packaging See Guide, page 24 Source: http://www.cleanair.org/Waste/wasteFacts.html
- 22. Organic, Local, and Bioengineering Consumer demand? Sustainability science? See Guide, page 25 Source: http://pubs.acs.org/doi/abs/10.1021/es702969f
- 23. Design & Manufacturing and Use are the Hot Spots for General Merchandise
- 24. Design & Manufacturing and Use are the Hot Spots for General Merchandise Campaign by Environmental Defense Fund Guide page 8
- 28. Possible starting points:Review and compare to information in Guide & “For More Information” links Compare information with your company priorities identified in Step 1 Talk to your sustainability team Talk to other category managers
- 29. Evaluate Information Types of information you may receive:
- 30. Eco-Labels: One tool in your toolkit Learn more about the eco-labels for your category SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010
- 32. Sustainable
- 33. Green
- 34. Environmentally-friendlySin of the Hidden Trade-Off Sin of No Proof Sin of Vagueness Sin of Irrelevance Sin of Fibbing Sin of the Lesser of Two Evils Sin of Worshiping False Labels For more information, see Guide pages 27-28 (Used with Permission)
- 36. Availability
- 37. Price
- 38. Service
- 40. Further Questions? Thank you for your attention and participation today!
- 41. Coming soon via Survey Monkey Did this webinar: Provide you with a good working understanding of sustainability in the food retail sector? Identify key sustainability issues specific to your product category? Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?
- 43. Living Our Values Five Winds is a Carbon Neutral Company and follows a Sustainable Purchasing Policy
Hinweis der Redaktion
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- We’ll start with a definition of sustainability to make sure we are all on the same page. FMI has defined sustainability as “Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line.” As you can see from this diagram, sustainability occurs when these three elements are present in an organization.
- Here are some additional research results on green consumers. A 2009 GMA/Deloitte Green Shopper Study surveyed customers as they were leaving stores. They found that while only 22% of shoppers bought green, an enormous 63% of shoppers were looking for green. This presents an opportunity for retailers to stock their shelves with green products and better serve their customers.
- We recommend you use a stepwise approach with your suppliers, that’s shown here in the four blue boxes. Before you talk with your suppliers though, it’s helpful to understand your companies’ sustainability priorities as shown here in the gray box. We’ll talk about that in detail in the next slide. The second step in the wheel is Communicate needs to supplier. Then you’ll acquire information from your suppliers about their sustainable practices, evaluate information in the fourth step, and maybe ask for more, and the last step is make purchasing decision. We’ll go through each of these steps in this presentation.
- The first step is to get a good understanding of your company’s priorities.For example, many retailers have a company sustainability policy that might deem fair trade or energy as the important sustainability aspects of their organization. As another example, some companies have a strategy that specifically addresses approaches to sustainable sourcing. One common strategy is around sustainable seafood sourcing.And as a final example, more and more companies are offering house brands that have environmental benefits, and serve as their product priorities. Talk with the person who handles sustainability in your company or try to get more familiar with these priorities.
- This leads us to the question – what attributes make a product sustainable?The following images show some attributes of sustainable products:-Powered by clean energyReduces the amount of waste to landfillWas sourced using fair tradeHas lower quantities of toxic chemicalsAnd uses recyclable packagingThese are not all the possible sustainable attributes a product might offer, but they are the most common ones that you should look out for.
- In fact, there are many many features about products that make them more sustainability or environmentally preferred. All of these terms that you may have heard from customers or suppliers can be confusing and some can be more important to your company and category than others.Let’s get specific now and get into some details about sustainability issues that are important for home and personal care. I’ll turn it over to Kats Maroney to discuss these details.
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- We’ve explained the key issues important for home and personal care products. Let’s go back to the sourcing wheel. We finished the first step – know your priorities. The next step is to start a conversation with your suppliers. If you are new to this, feel free to start with one supplier you are comfortable speaking to, and have a good relationship with. Perhaps you might choose to speak with a supplier who has already brought up the issue of sustainability in conversations before. Start by telling them what your priorities are for your company and your specific home and personal care category.
- One of the points we want to make about getting sustainability info from your suppliers is that best practice is to ask about both the company and the products. For example, a company might make one green product out of a whole line of traditional products. As another example, some companies are working on making their own operations more sustainability but aren’t focused on their products yet.This quote from Steve Jobs sums this point up well. Page 21 of the guide includes some general sustainability questions you can use to start a conversation with your supplier about their sustainability practices related to products and operations.
- When you start to ask for information about sustainability, you may receive an overwhelming amount of information. It’s helpful to think about what you’re going to do with the information ahead of time. When you do get the information here are some ideas for how you can evaluate it. If you notice you did not receive any info on a sustainability priority of yours, you may need to circle back to step 3 and acquire more information.Begin creating a process to manage the information. Some possible starting points: READ
- There are three general types you might receive from your suppliers about their sustainable products.First, you are most likely to get information regarding “self made” claims. This is information the company has prepared on its own about its products. Like any other marketing claim, use your common sense coupled with a healthy dose of skepticism if claims seem too good to be true. If you have a question about an environmental claim, don’t hesitate to ask your supplier for more information to backup the claim.Second, you might receive information about an ecolabel on your suppliers’ products. The good feature of most ecolabels is that it often means some third party has verified your suppliers claims. There are downsides, however. Ecolabels sometimes only touch on a single sustainability issue, such as energy efficiency or carbon, and this issue may not overlap with the sustainability priorities for the product category.The third, and least likely type of information you might receive is Environmental Product Declarations. They are environmental statements about a product that is based on a life cycle assessment, and they are very rigorous in their analyses. It is an emerging practice for retail consumer goods, so it is not currently seen on many products.
- This slide shows what some of the most common ecolabels are in North America. For example in the Retail Goods column, where home and personal products would fall, there is the Design for Environment label, which recognizes products that the EPA’s DfEscientific review team has screened each ingredient for potential human health and environmental effects, the fair trade logo, and the leaping bunny logo, which recognizes products that do not use animal testing.There are links in the guide that will take to more information about these ecolabels.
- There are different ways that companies might use Greenwashing. Terra choice created the seven sins of greenwashing report, and the sins are listed here on this slide. Descriptions of each of these sins is provided in the guide, pages 27-28. But I’ll just elaborate a bit on one of the most common types of greenwashing: sin number 3, the use of vague or general terms like eco-friendly, sustainable, green or environmentally friendly. Use a healthy dose of scepticism and common sense and ask for more information to back up the claim.
- Now we are at Step 5 in our sourcing wheel, which is make purchasing decision. Remember to evaluate sustainability as only one aspect in your purchasing decision, along with the aspects of quality, availability, price, and service.This will put your company on the right track to sourcing profitable sustainable products from reliable suppliers.Now, I will hand it back to Kats who will summarize the take-home messages from this webinar presentation.
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