“Benefits of Creating A Local Supply Chain”

Watertown Chamber

“Lunch for Success Stories Program”

May 16th, 2013

Presented by:

Lisa Geason-Bauer, President

Evolution Marketing llc

262-354-0341/ Lisa@greenmkting.com

Why is this topic important?

• Facet of the buy local, shop local movement • Viability of/for your organization • Needs all tools you can get in todays world in

order to stay competitive • Changing world & global marketplace • Scarcity of natural resources

Backdrop for change •Wal-Mart – 2005 set of goal of decreasing their CO2 by 20%, by 2012. The company’s 2011 data showed a drop in emissions 20.02 percent below its 2005 baseline for the existing facilities. • Sustainability Consortium founded in 2009

- 2013– 85 + members- working groups for major areas across globe-focused on life cycle analysis for all products- goal to compare across all products

http://www.sustainabilityconsortium.org/

New Normal

• Shaped by Wal-Mart’s Sustainability Index (2009) (this has revolutionized the way suppliers and producers think)•Wal-Mart wants its suppliers to reduce 20 million metric tons of greenhouse gas emissions by the end of 2015 (announced in 2010)• Many suppliers/manufacturers are being asked to disclose key factors associated with their operations

Lots of ways to measure supply network success

• Food miles (i.e. how far has food traveled) many grocery stores are focusing on labeling “local” food items

• Chain of custody certification – FSC (toilet paper, paper towel, printer paper, wood, doors etc)

https://us.fsc.org/

• Cradle to Cradle Certification (cleaning products, baby care, textile & fabric, building materials, interior design )

http://www.c2ccertified.org/about

Key Supply Chain Management Factors to consider

• Reduced Costs - cradle to cradle analysis • Increased Efficiency through strategic planning &

management of resources • Increased output from workflow analysis• Foster close-knit relationships with suppliers and

customers• Increased profits through smart sourcing of

materials from local or regional market places • True costs used in cost comparison (i.e. true cost

for natural resources)

Evolution Marketing supply network story

• Transparency in sourcing, carbon calculations• Legitimacy in services offered & trusted

recommendations (consulting) • Cost effective options that are high quality• Why not take advantage of the local supply

network?

Unintended benefits • scraps/trimmings cut from recent Evolution Marketing collateral items are composted at Print House

Customer Appreciation

• Rose bushes love fertilizer!

CASE STUDY :

Cost effective management of local supply network

• Maximizes local resources • Able to be more competitive for pricing out services • Quicker turn around (due to local paper sourcing)• Greater Flexibility in meeting client needs• Paper market is very volatile (consumer can see big

price fluctuations based on when something is quotes) with local sourcing – better able to maintain consistent pricing

• More opportunities available for paper procurement & special pricing (reduction in shipping costs)

• Benefit is transparency in supply chain

CASE STUDY:

Egg cartons & printed labels

Updated brand & new label

Implementation of local supply network

• New label is larger, covers the entire top of the egg carton and the front/back sides

• Printed with vegetable based inks• Printed by a local printer• Paper sourced for the labels (Crack & Peel) is

made in WI• Local delivery available with order • Further able to demonstrate farms

sustainability

Supply Network Benefits

• JRS Country Acres has an added level of flexibility regarding their distribution network (i.e. they can respond quicker to market demands)

• Increased control of product supply chain• Availability to order in smaller quantities • Strategic sustainability – due to all local

suppliers, there is better collaboration between design house, printer and JRS

Business Benefits:• Cost effective sourcing (higher quality) for the same price as original label• New Design/Label increased sales by 30%

Supply Network Challenge

Background :a. Only three pulp egg carton manufacturers in US and Canada. Two have the flat top cartons with tabs far apart, one has flat top with tabs in the middle. One of the two had a fire last year and are still not done rebuilding, so that leaves one company (in Canada) producing the cartons we need.b. Numerous times in the past year we have been shorted cartons because of short supply and had to improvise with some of our customers.Solution: sustainable packaging

CASE STUDY

Supply Chain helped organization to define their sustainability initiatives

FOTODYNE Inc. defined sustainability in terms of their products and specifically within their supply chain. They went as far as to design their products based on WI/Midwest Suppliers

Benefits:• increased product turn around time which leads to

better customer response time • added more control/flexibility to supply chain

Take home message

• Understanding your organizations supply network is good for business.

• Strategic Sustainability

Questions ?