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Winston, “but the people doing supply chain
work are right in the heart of this now.”
During the keynote, he will discuss:
The forces coming to bear here: It’s
not just governments that are demanding
environmental change. Consumers and business
customers are also rewarding companies
with a commitment to environmentally
responsible practices.
What companies are doing in response
to those forces: Companies like
Wal-Mart and GE are reducing their carbon
footprint and creating green products.
What’s more, Wal-Mart is committed to
a 25% reduction in solid waste, including
reductions in packaging, over the next
three years. That impacts suppliers.
How the Green Wave is beginning to
ripple effect across the supply chain: As
major manufacturers like Proctor & Gamble,
Unilever and others begin to comply with
the demands of their major customers, they
(Continued on page 2)
Andrew Winston, NA 2008’s keynote speaker, explains how smart
companies are embracing the Green Wave to win in the marketplace
and rethink their supply chains.
2 On The Mhove
(Continued on page 15)
(Continued from page 1)
straints that we are experiencing.
Oil, for instance, is a resource
constraint. We’re not
really running out of oil per se,
but we are running out of the
things that happen when you
burn the fuel, like clean air and
a stable climate. There are clear
constraints on water in many
places. That’s the natural world.
Then there are the stakeholders
who care about these issues
and are asking tough questions.
That list is much more diverse
than most companies realize. It’s not just governments and non-government
organizations (NGOs). It’s now your employees and your
own customers. It’s the banks that are lending you money and your
insurance companies. It’s changing very fast.
Are there forces specifi c to the supply chain?
WINSTON: Certainly there are forces on the supply chain specifi cally
in the B2B realm. Companies are pressuring each other. For instance,
companies in many industries are asking their suppliers to change
their behaviors.
What are some of the initiatives you’re seeing?
WINSTON: I’m beginning to see industry-related initiatives like the
Supply Chain Leadership Coalition. It includes companies like Proctor
& Gamble, Unilever and Nestle that are asking their suppliers for
information about emissions data about their products. That’s a direct
reaction to retailers like Wal-Mart and Tesco asking them for information
about their carbon footprint and the greenhouse gas emissions of
the products they’re selling. These companies realize they don’t have
the answers because they don’t know what their supply chain does.
The companies that are handling logistics and supply chains are going
to have to begin to collect and package data.
How then are companies responding to those forces?
WINSTON: There are a lot of different ways to create value with green
thinking. One is to cut costs through more effi ciency. But another is to
create value by driving more revenue. So, like any company, as a supply
chain related company you can create products and services that
your customers like. I think that’s going to include gathering more environmental
data that you can package for your business customers. If
you can help them with their environmental issues, you can drive your
revenues. I think the data and information movement in this space is
going to be profound.
One of the things material handling systems companies
are telling us is that the projects getting funded today have
a green component. If someone can attach green to a new
conveyor system when they take it to the board for approval,
they have a better chance of getting the project funded?
WINSTON: Well, so what as long as it actually does reduce the carbon
will require changes from their suppliers.
The most important take away might be this: “There isn’t really a
choice any more,” says Winston. “Wal-Mart is never going to go away
because going green is making their business better. If you’re in their
supply chain, your choice is to lead or fall behind.”
Let’s ask the really simple question: What is sustainability?
WINSTON: There’s no simple answer to that question. One defi nition
is that we’re providing for our needs without damaging the ability of
future generations to provide for their needs. Literally it means: Can
you do this indefi nitely? I think that is a pretty useful defi nition.
　
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