Michael D'heur and Dr. René Schmidpeter presented the approach of Sustainable Value Creation / Sustainable Value Chain Management at the Supply Chain Council Europe Conference. Taking the SCOR Model as the base, Sustainability can be embedded at every intersection point of the supply chain to create economic, ecologic and societal value.

1. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 1 | October 2013
Sustainable Value Creation -
xCOR(r) enabled
Michael D’heur – shared.value.chain
Dr. René Schmidpeter – Center for Humane Market Economy
SCC Europe Conference, Frankfurt, 07 October 2013

2. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 2 | October 2013
Your Presenters
Dr. René Schmidpeter
Academic Director
Centre for Humane Market Economy
Salzburg, AUSTRIA
Lecturer: „Advanced Business Ethics & Economics“
University of Eichstaett-Ingolstadt, GERMANY
Michael D‘heur
Founder & Managing Director
shared.value.chain Management Consultants
Munich, GERMANY
Editor of „CSR und Value Chain Management“
(Springer-Gabler, October 2013)

3. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 3 | October 2013
The Context for Business and Society is Set by
Constant Change and Higher Interdependencies
• Fossil Fuels
• Rare Earths
• Fertile Farmland
• Freshwater
• Volatility of
Demand / Supply
• New markets
• Changing
demographics
• Interdependencies
• Disruption risks
• Stability of supply
networks
• Record Profits
• Societal Issues
• Compliance
Business Challenges Accelerators
“What is the right
approach to value
creation?”
Market Volatility Natural resources
Profit vs. PurposeGlobal Value Chain
x
Man made
disasters
Natural disasters
Key Question

4. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 4 | October 2013
The Question is How Businesses Approach the
New Context to Drive Value Creation
Value Creation
Approach CORPORATE SOCIAL
RESPONSIBILITY AND
VALUE CHAIN MANAGEMENT
Approach of
Economy
Growth
Paradigm
„Perpetual“
Sole Focus on
Economic Value
Economic, Ecologic,
Societal Value
„Circular“„Linear“
„Resource depleting“ „Resource building“
„Two Worlds“ „Two sides of the
same coin“
„Sustainable“
CORPORATE SOCIAL
RESPONSIBILITY OR VALUE
CHAIN MANAGEMENT

5. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 5 | October 2013
‘Outside-In’ View: Governments and Society
Expect More from Businesses When it Comes to
CSR
„CSR is a process whereby companies integrate
social, environmental and ethical issues into their
business operations and strategy in close
interaction with their stakeholders, going beyond the
requirements of applicable legislation and collective
agreements. …
A strategic approach to CSR is increasingly
important to the competitiveness of enterprises,
helping them to create value both for owners and
shareholders … to win the trust and respect of
citizens …
Source: European Union – CSR Strategy 2020

6. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 6 | October 2013
CSR Needs to be a Management Approach
to Fulfil the High Expectations
Source: Edelman Trust Barometer 2011

7. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 7 | October 2013
CSR Applied as Part of a Management Approach
can Deliver Value Business and Society (Shared
Value)

8. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 8 | October 2013
Capturing the Value Opportunities Requires
Driving The Change ‘Inside-Out’ From the Core
Business
Organisation Stakeholder/
Society
New Products and Services
New Processes
New Markets
New Business Models
New Management- and Reportingsystems
Source: Eva Grieshuber (2012) in Schneider/Schmidpeter (Hrsg.): Corporate Social Responsibility, p. 375
The Core Business
(Products & Value
Chains)

9. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 9 | October 2013
However, In Many Companies There is a Gap
Between CSR and the Core Business
Quelle: shared.value.chain (2013)
Operations
CSR / Sustainability
SPR RD
Global Value Chain
Product Development
M
Legend: (P) Plan, (S) Source, (M) Make, (D) Deliver, (R) Return
Lifecycle Management
Global Value Chain

10. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 10 | October 2013
To Bridge the Gap Integration of Sustainability and
Core Business Needs to Happen Across the Value
Chain
The SCC xCOR Toolkit can be used as a
reference to start the integration from the Core

11. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 12 | October 2013
xCOR Supports the Transition From Supply
Chains Towards Integrated Value Chains
Supplierprocesses
Product Design
DCOR™
Customerprocesses
Supply Chain SCOR ®
Sales & Support
CCOR™
Product Lifecycle Management
An invaluable source of knowledge, frameworks, metrics and
benchmarks – Eventually enabling your teams to make progress
based on a common language and facts (instead of emotions)
The SCC xCOR Value Chain Toolkit
ProductSupplyChain
CustomerEmployees

12. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 13 | October 2013
Applying xCOR to the Value Creations Points
Can Help to Bridge the Gap – Example: Sourcing
Source: shared.value.chain (2013)
Review Areas
Value
Creation Point
SOURCE
Economic
Purchase Price
Product Quality
Supplier Delivery Performance
Supplier Reliability
Ecologic
Depletion of local resources
Impact on biodiversity
Options for renewable sources
Societal
Working conditions of supplier
Local impact of SOURCE process
How xCOR can help
Product
Supplier inclusion into
development process
Lifecycle management
process
Supply Chain
Process templates
Best practices for sourcing &
supplier collaboration
Joint metrics for economic,
ecologic and societal KPIs
Collaboration
Mapping stakeholders and
understanding of their
requirements

13. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 14 | October 2013
xCOR can Help to ‘Connect all Dots’ and to
Enable Sustainability in the Core Business
Sustainable Product (PD & LCM)
Sustainable Operations (SCM)
Innovation
Use Phase &
End-of-Life
Raw Material
& Services
Your OrganizationSupplier Customer
RETURN
SOURCE MAKE DELIVER
Innovation
RETURN
PLAN
PLAN

14. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 15 | October 2013
Several Companies Have Decided to Lead the
Way Towards Sustainable Value Creation
Value Creation
Strategy
Sustainable
Products
Sustainable
Operations
Enterprise
Architecture
Stakeholder
Collaboration
Business
Planning
Continuous Cost
Reduction
Supplier &
Partner
Networks
1
2
3
4
5
6
7
8
Creating
Shared Value
Program
Plan A
Committment
Energy Saving
ICs
Reduced
Impacts during
Use Phase
Sustainable
Supply Chain
Sustainable
Apparel & SC
Integrated
Scorecard
Measuring
sustainability in
the Agro SC
Regional
Administration
Development
Partnership
Safe & Fair Labour
Planning for Asset
Recovery
Demand-Supply
Synchronization
Logistics Cost
Reduction
Environmental P&L
Empowering rural
women
Localized Vanilla
SC

15. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 16 | October 2013
Conclusion – Sustainable Value Creation Needs
to be Driven Through the Core Business
1
Change Perspective – Drive sustainable value
creation through the core business (‚Inside-Out‘)
2 Collaborate for Opportunities – Integrate
Sustainability across the Value Chain
3 Get started - the xCOR toolkit gives you a
excellent starting position. Add the 6th sense
of business (Sustainability) into the Model
going forward

16. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 17 | October 2013
Find out more in ‘CSR und Value Chain
Management’ – Sustainable Value Creation in
Action
Springer Publishers, German Language, Publishing Date October 2013
For more Information please visit http://bit.ly/1fTcrWg
Independent
Capital
Management AG

17. © 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 18 | October 2013
THANK YOU
Michael D‘heur, shared.value.chain
+49 170 768 58 61
mdheur@sharedvaluechain.com
Dr. René Schmidpeter, Center for Humane Market Economy
+49 173 255 48 59
Rene.schmidpeter@gmx.de