have you considered sustainability? · the iso 12647 standard. data analyzed and compared against...

Have you considered

SUSTAINABILITY?Environmental responsibility in the

procurement and production of marketing materials.

2 Innovation that delivers. © 2017 HH Global Ltd.

Contents

Introduction: Making the case 03

Environmental impact and the print supply chain 04

Stage 1: Development and planning 04

Stage 2: Sourcing and procurement 06

Stage 3: Production 08

Stage 4: Warehousing 10

Stage 5: Distribution 11

Social Responsibility 12

Incorporating sustainable business practices efficiently 14

References 15


The case for considering environmental responsibility when printing your marketing materials

The procurement and production of printed marketing materials involves numerous natural resources, trees, water, and fuel for energy, which are finite. In seeking to meet our needs today, we must avoid compromising our access to these resources in the future.

To do so, we must be aware of the effect our supply chain decisions have on the naturally-occurring world, “the environment,” and its ecosystems. Without regulation and protection, these natural resources will eventually run out.

Yet business needs and environmental consideration are not mutually exclusive. Companies that demonstrate environmental responsibility enhance their competitive advantage over others in the value chain and CPOs implementing environmentally-conscious initiatives have seen efficiency and costs improve (ISEAL and Globescan, 2016).

Recognizing and addressing impact on the environment is not only part of a company’s social responsibility, it also makes good business sense.


Stage 1: Development and planning

According to ISEAL Alliance, “Around the world, governments, companies, and consumers are thirsty for ways to support responsible business practice.” Environmentally responsible business practices can begin with some simple adjustments in planning.

Assessing and re-engineering print needs can not only save paper, but improve communications. Does every piece of collateral need to be printed? Analyzing actual need and best practices for reaching target markets will provide insights as to which communications can be emailed instead of printed, and which products can be re-designed to use less paper, from converting a letter to a direct mailer, to offering an online catalog instead of in print. Another sustainable and environmentally

friendly approach is switching from holding expensive stocked items to a print on demand (POD) workflow. Digital templates, approved text options, images, and other brand assets are stored online in a marketing procurement platform and are accessible anytime, anywhere. Printed materials can be produced as needed, driving efficiency and reducing both wasted resources and the costs associated with procuring and storing materials that may not get used. Files are stored as variable data printing (VDP) templates and can be edited, personalized, reviewed, and approved electronically.

This allows for brand-consistent, customized, and localized marketing content to be built quickly and efficiently, whenever and wherever it is needed.

Environmental impact and the print supply chain

Environmental impact is a factor at all stages in the production of printed marketing materials, also known as the marketing supply chain. The most effective supply chain management tactics reduce costs and environmental impact, while supporting corporate social responsibility goals and values. According to Environmental Leader, companies are now seeking sources to perform audits and measurements that take environmental impact into account, leading to a better understanding of supply chain performance.

Much of the strategies and changes that lead to more environmentally sustainable business practices also make sense from an economic perspective, leading to reduced supply costs, efficiency in resource use and fulfillment, improved supplier visibility and compliance, higher quality products, and optimized time to market.

Let’s take a look at how environmental impact must be considered in five stages of the marketing supply chain.


Re-engineering a three-piece mailer to one-piece mailerDoes every piece of collateral need to be printed, or is there a better way? Assessing and re-engineering not only saves paper, it can improve communications.

One-piece mailer: Single piece, 8-page with integrated die cut card

= Paper savings

11.5 tons

Trifold brochure

(7” x 5”) + 21pt voucher card

Letter(10” x 6”)

Envelope(5.25” x 7.5”)

US A7 size

20.68 tons

+3.05 tons

+3.925 tons

-16.16 tons

Quantity: 600,000 pieces


Stage 2: Sourcing and procurement

The cost of acquiring and conserving resources must be considered to be competitive and keep operating costs low. Print managers and marketing execution providers are also expected to de-risk the supply chain, ensuring all sourcing and operations are efficient and aligned with legal and corporate standards. Ethical sourcing and brand consistency are two areas that can provide cost savings and waste reduction. Auditing your supply chain often reveals inefficiencies that can be addressed to reduce risk and impact on the environment, from where resources such as paper and ink are sourced, to the types used. It is important to select suppliers that align with company needs and standards, from ethically sourced to environmentally friendly sources. In fact, according to a Programme for the Endorsement of Forest Certification (PEFC™) global consumer survey, 80 percent of consumers globally want companies sourcing certified materials from environmentally sustainable managed forests. Consumers are also willing to pay extra for products that are packaged with consideration of environmental impact, according to FESPA.

Organizations such as the FSC® (Forest Stewardship Council®) and PEFC™ help companies promote environmentally, socially, and economically viable forest management beyond environmental legislative requirements and provide a labelling system to show their effort to consumers.

ISEAL Alliance said, “The uptake of certification by businesses should be turning heads….FSC® has secured commitments from no less than 20,000 companies, the biggest of which include Kimberly-Clark and Office Depot.”

According to PEFC™, “Chain of Custody certification offers companies access to markets demanding eco-friendly products and market advantage in relation to companies with uncertified products. It enhances brand value.”There are many options for companies seeking to maximize renewable resources, eliminate toxic chemicals, reduce waste, ink, and water consumption, save energy, and comply with federal regulatory guidelines.

Today, post-consumer recycled paper and virgin paper are readily available and identical in quality. Companies can also chose elemental chlorine free and totally chlorine free paper, as bleaching with elemental chlorine releases harmful chemicals into the environment.

“ The uptake of certification by businesses should be turning heads….”


Switching paper and planting treesFor the world’s leading search engine provider, HH Global was able to:

Switch to 100 percent post consumer waste/recycled paper for many campaigns

Support the planting of 30,000 trees through a direct mail offsetting program

Environmentally responsible

sourced materialsThere are many options for

companies seeking to maximize renewable resources:

Eliminate toxic chemicals, reduce waste, ink, and

water consumption

Save energy and comply with federal

regulatory guidelines


Stage 3: Production

Soy-based inks are quickly becoming popular as an environmentally responsible alternative. Soy is one of the most renewable food sources available, can be farmed without irrigation, and absorbs carbon dioxide as it grows. Less ink is used when printing with soy because it produces a more intense color and less is transferred to the machine. Soy also has a high lithographic stability, so less adjustments are needed through the process, resulting in higher quality overall.

In the production of printed materials, both the resources selected and the equipment used can have a significant impact on the environment. Older or out-of-order machines do not operate at their most efficient, wasting time and energy -- and money. Mistakes lead to significant re-runs, sometimes entire orders, if final product does not meet brand standards. Maintaining machines at their highest operating efficiency minimizes the use of electricity, paper, ink, and water. Selecting vendors that use high-quality processes and ensure color and quality with universal standards results in less mistakes as well. Color management is a relatively new initiative with regards to environmental

Another simple way to improve costs and consistency is taking a look at how many kinds of paper substrates are being used across production locations. When materials are produced in numerous locations, frequently a variety of paper is used. Consolidating paper substrates across printer locations will improve the overall quality and consistency of final products, resulting in less mistakes and reruns. From the procurement perspective, this provides savings and protects brand standards.

responsibility, but it has been shown to reduce waste by as much as five percent. “Preflighting” capabilities allow for digital files entering the workflow to be auto-checked by smart technology, ensuring compliant files at the very start of the process. Quality can be assured through the combination of technology and standardization, by calibrating print outputs on press to preset standards, ensuring color is the same across printers and substrates. Both techniques result in less re-runs due to mistakes or inconsistency, saving thousands of gallons of water and forests of trees. By refining inefficient processes and printing correctly the first time, companies can drastically reduce budgets while becoming greener in the process.

“ In the production of printed materials, both the resources selected and the equipment used can have a significant impact on sustainability.”


Step 1 Step 2 Step 3 Step 4

Quality and efficiency in production reduces wasted resourcesQuality Printer Program is a proprietary HH Global program devised to reduce waste by improving brand consistency and print production processes throughout the supply chain.

Suppliers download standardization software supporting the ISO 12647 standard.

Data analyzed and compared against standard.

Supplier connects via the cloud and submits results in real time as the job is on press.

Make ready and running waste reduced by 3-5 percent, driving efficiency and maintaining brand integrity.


Stage 4: Warehousing

Estimating marketing print needs in advance is one of the major challenges leading to overage and waste. Many companies estimate the number and type of materials they will need for an entire year or selling season, print them in advance, and then need to store those materials for 6-11 months. Bulk printing offers some savings, but not in comparison to the benefits of printing on demand. Companies

Printing on demand reduces overages and speeds time to marketCompanies can save money and reduce waste by sending campaigns to print when they are needed using print on demand.

Traditional printing:

Order is placed by a store, relayed to a warehouse

Order is placed by a store and goes directly to the printer

The item is packaged and shipped

The item is then sent directly to the store

Item arrives at the store

can save money and reduce waste by sending campaigns to print when they are needed. This also provides the opportunity to deliver customized messaging when it is relevant. Printing on demand allows for more timely, targeted messaging and a better estimate of actual need, while eliminating the need for long-term storage requirements.

1

1

2

2

3

Printing on demand:


Stage 5: Distribution

A large consumer of resources is the route to print, fulfillment, and distribution of materials. Centrally managing print can seem appealing, but producing material in one place and shipping to locations around the world results in an unnecessary waste of money and resources. Technology allows for global coordination, with complete control and oversight, so products can be sent digitally to

Efficient route to print reduces resource useAvoid the unnecessary waste of money and resource with a localized route to print.

Inefficient scenario:Items are printed in one place, stored, and then transported

all over the world.

Efficient scenario:Items are printed locally and then shipped directly

to end customers.

print through suppliers in proximity to the final delivery location. This allows for faster delivery of smaller quantities at costs that are often lower than those available through traditional methods. A localized route to print also drastically reduces the amount of energy from storage and gasoline and production of carbon emissions.


Social responsibility

Today, environmentally responsible business practices can provide opportunities for businesses as a source of competitive social and fiscal advantage, according to Harvard Business School and Harvard Business Review. Many companies have created social responsibility agendas to balance profits with concern for the environment and the welfare of people. Public perception of a company’s values and responsibility has a significant impact on profitability and staff morale and retention.

“Customers, shareholders, and staff alike expect businesses to act positively and responsibly to reduce their carbon emissions and support a more sustainable environment” (Woodland Trust). A social responsibility agenda also needs measurement. More advanced and innovative technologies can provide tracking and analysis of factors relating to environmental impact, as well as provide reporting and business intelligence to support corporate impact-reducing goals. These include processes efficiency, sourcing and production of

collateral, resource consumption, and supplier performance, from waste to carbon emissions. “If you can measure it, you can control it; if you can control it, you can reproduce it,” says Kevin Dunckley,HH Global Chief Digital and Innovation Officer and the Executive Board member responsible for environmental initiatives. By tracking and monitoring processes and outputs, it’s easy to see where waste can be reduced across the entire supply chain. Companies can demonstrate with real data where improvements are being made and how socially responsible initiatives are providing social and environmental benefits.

The U.S. is targeting an economy-wide goal of reducing carbon emissions by 26-28 percent by 2025, according to the 2015 GEP Trends Report. Carbon measurement tools are available that calculate emissions across the supply chain, benchmark output, and establish a baseline carbon cost. This data is used to determine how to offset or mitigate emissions, enabling ongoing improvement through informed decision making, leading to adjustments that help the environment while maintaining brand integrity.

“ Customers, shareholders, and staff alike expect businesses to act positively and responsibly to reduce their carbon emissions and support a more sustainable environment”.


The most efficient way to incorporate sustainable business practices

The challenge is to balance impact-reducing efforts with business objectives and cost considerations. Often these objectives can be aligned to drive greater overall value. Monitoring all the components iscomplicated and time consuming, requiringadvanced and expensive technology to betruly effective, and needs a broad scope tomaximize opportunity and innovation. Thereis a need for organization and firm oversightto ensure visibility, track and deliver data,and manage standards. A study by Siemens and GreenBiz Group found that the growing environmental responsibility mandate is also increasing the need to leverage outside resources and expertise.

A partner with expertise, understanding, and success in reducing environmental impact is invaluable to supporting informed decision making and accessing the most advanced opportunities for improvements. Even companies that have established environmental sustainability programs benefit from procurement market insights, best practices, and advanced tools, in addition to the dedicated focus on making the business more environmentally friendly.

GreenBiz said, “What’s driving the trend to outsource is the increasing sophistication, number and complexity of sustainability goals....Consequently it is for implementation, not setting strategy, that outside experts are called in.”

For example, as the marketing execution partner to a global financial services company, HH Global helped reduce the company’s paper output by 398,505 pounds, achieving 100 percent FSC® compliance across paper output in the Americas for 2015. This success was the result of both the application of HH Global’s proprietary Quality Printer Program (see graphic on page 9) and ongoing collaboration with the company’s own, previously established Sustainability Leadership Program.

Active participation in this program was key to HH Global becoming a valued and strategic supply chain partner to the company, according to the company’s Sustainability Engagement Head. In addition to contribution of insights and best practices, they felt strongly that HH Global’s integration of ideas from their program participants led to the nurturing and growth of meaningful change programs.

“ ...it is for implementation, not setting strategy, that outside experts are called in.”


Larger companies are more likely to adoptenvironmentally responsible business programs and they are using outsourcing to achieve them, reports the Consero Procurement Strategic Sourcing Data Survey. Siemens and GreenBiz Group found that nearly one-quarter of firms with revenues over $1 billion have set impact-reducing environmental goals and nearly 80 percent partnered with third party consultants to support these efforts within the past two years. An experienced and well-connected marketing execution partner possesses the knowledge, bandwidth, and tools to consider and help improve environmental impact across the entire supply chain. Outsourced procurement partners also can provide monitoring and tracking that captures data in conjunction with procurement and production management systems, such as CO2 calculators.

According to ISEAL Alliance,“Standards and certifications that follow credible practices are one of the few sustainability models to demonstrate their contribution to a more just and viable future.”

Outsourced partners also possess theexperience, scope, and network toassess supplier impact and ethics. According to ISEAL Alliance, “Standards and certifications that follow credible practices are one of the few sustainability models to demonstrate their contribution to a more just and viable future.” Tools such as Sedex® and EcoVadis and other data management systems help collect, analyze, and rate ethical and responsible business practices. Outsourced partners can work closely with thousands of vendors and suppliers, and audit them regularly. They possess the influence to mandate standards in waste disposal procedures, production times, and usage that de-risk clients’ supply chain and help suppliers improve.

Consider environmental impact in your marketing printWe all must do our part to consume moreconsciously in order to protect the environment and one another, and that starts by examining where there are opportunities for improvement. Environmental considerations in the production of printed marketing materials have traditionally been seen as areas of spend rather than savings. Incorporating solutions that produce reduced environmental impact and savings together makes businesses look smart, conscientious, and attractive to customers and partners alike. “Education and awareness is more critical now than ever,” said Dunckley.

Companies that take the lead today in environmental responsibility efforts will be more responsive and ready to adapt and profit from new technologies and ideas in this area -- keeping themselves and their partners one step ahead of the competition.

“ One quarter of firms with revenues over $1 billion have set impact-reducing environmental goals...”


References

Consero Procurement Strategic Sourcing Data Survey, Consero Group, 2015.

Extending the team: the role of outsourcing to achieve sustainability objectives, GreenBiz Group, Inc., 2015.

Helping procurement professionals to make sustainable decisions, Federation of European Screen Printing Associations (FESPA™), 2015.

Jessica Lyons, 6 Sustainable Packaging Trends to Watch in 2016, Environmental Leader, 2016.

Karin Kreider, “Why you should prioritise a sustainable sourcing strategy in 2016,” Procurement Leaders magazine, 2015.

PEFC™ Global Consumer Survey, Programme for the Endorsement of Forest Certification (PEFC™), 2014.

Strategic sourcing and procurement outlook, GEP Trend Report, 2015.

HH Global Sustainability Leadership Council, HH Global, Ltd., 2016.

About HH Global

HH Global Ltd., founded in 1991, is a leading, independent marketing execution partner to prominent brands in over 34 countries, providing outsourced creative production and procurement services. With more than $500M in spend under management, HH Global maintains a razor-sharp focus on cost and quality, combined with an industry-leading sustainability program, offering improvements that provide both fiscal and environmental value. Our people, track record for innovation, commitment to sustainability, and the passion we have for our work make us the first choice partner for the world’s leading brands.

To learn more, visit hhglobal.com or contact us at [email protected].

© 2017 HH Global Ltd. All rights reserved. HH Global is the trading style of the HH Global Ltd. group of companies. HH Global, the HH Global logo, and the HHub logo are trademarks or registered trademarks of

HH Global Ltd. All other trademarks are presumed owned by their respective companies.HH Global, 175 E. Hawthorn Parkway, Suite 325, Vernon Hills, Illinois 60061

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