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Introduction to GreenSCOR
Introducing Environmental Considerations to the SCOR Model
The SCC has introduced environmental management elements into SCOR 9.0.
• Environmental management is a growing concern in industry.industry.– Specifically, the “green supply chain”
• SCC leveraged previous research to introduce “green” into SCORinto SCOR– Processes– Best Practices– MetricsMetrics
• As a proven Supply Chain Management model, SCOR is ideal as a Green Supply Chain tool.
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Green SCM integrates environmentaland supply chain management.
Green Supply Chain Management
omer
s
uppl
iers
P1 Plan Supply ChainPlanPlanP2 Plan Source P3 Plan Make P4 Plan Deliver
Source Make Deliver
S1 Source Stocked Products M1 Make-to-Stock
M2 Make-to-Order
D1 Deliver Stocked Products
D2 Deliver MTO ProductsS2 Source MTO Products
P5 Plan Returns
Green Supply Chain ManagementEnvironmentalManagement
Supply ChainManagement
Cus
toS
M3 Engineer-to-Order D3 Deliver ETO ProductsS3 Source ETO Products
Return Source
Return Deliver
Enable
Green SCM recognizes the disproportionate environmental impact of supply chain processes in an organization.
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Green SCM leverages the role of the environment in SC value creation.
Tangible OutcomesEnvironmental Value Drivers
Green Supply Chain
Programs
Profitability
Asset Utilization Supply Chain
Value
Employee Satisfaction
Service LevelValue
Environmental Sustainability
C it
Customer
Reputation
Continuity
Stakeholder Interests
Community Quality of Life
y
Alliances
Technology
Intangible Value DriversIntangible Value Drivers
Source: Forging New Links, GEMI, 20044
The product life cycle is the basis of green supply chain management.
Supply Chain in the Environmental Life Cycle
Designing the supply chain tl ith th d t concurrently with the product
is a supply chain managementbest practice.
RawMaterial Transport Manufacture Transport
Retail/Consumer Transport Disposal
DesignConceptMaterial
ExtractionConsumer
Use
T i l S l Ch i STypical Supply Chain Scope
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Now, GSC programs are moving from compliance to value creation.
Environmental, Safety, and Health Business Contributions
Minimize Risk
Assure Compliance
Enhance Relations
Raise Productivity
Protect the Environment
Maintain Health
Enable Growth
Support Innovation
Traditional Cost
Emerging Value
Avoidance Creation
Source: Forging New Links, GEMI, 20046
GreenSCOR was created to add environmental considerations to SCOR.
• 2002—ADUSD L&MR (SCI) created GreenSCOR to understand the relationship between environmental understand the relationship between environmental and supply chain management.
• 2002-2007—Greater community saw value of the approachapproach– GreenSCOR won the SCC 2003 Award for Academic Excellence
• 2008—GreenSCOR elements added into SCOR 9.0 as integral part of model.integral part of model.
ADUSD L&MR (SCI)= Assistant Deputy Under Secretary of Defense, Logistics and Materiel Readiness, Supply Chain Integration
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GreenSCOR is a modification of the SCOR model that includes environmental elements.
P1 Plan Supply ChainPlanPlanP2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns
GreenSCOR Development
Cus
tom
ers
Supp
liers Source Make Deliver
S1 Source Stocked Products M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
D1 Deliver Stocked Products
D2 Deliver MTO Products
D3 Deliver ETO Products
S2 Source MTO Products
S3 Source ETO Products
Return Source
Return Deliver
EnableEnvironmentalSCOR Model
EnvironmentalManagement
tom
ers
Supp
liers
P1 Plan Supply ChainPlanPlanP2 Plan Source P3 Plan Make P4 Plan Deliver
Source Make Deliver
S1 Source Stocked Products M1 Make-to-Stock
M2 Make-to-Order
D1 Deliver Stocked Products
D2 Deliver MTO ProductsS2 Source MTO Products
P5 Plan Returns
GreenSCOR modifies the existing SCORt t t
GreenSCOR maintains the integrity of the
GreenSCOR ModelC
ustS
M3 Engineer-to-Order D3 Deliver ETO ProductsS3 Source ETO Products
Return Source
Return Deliver
Enable
structure to include environmental processes,
t i d b t
g y ocurrent SCOR model by adding to the existing elements.metrics, and best
practices.
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GreenSCOR focuses on the impacts of SCM in each stage of the product life cycle.
GreenSCOR Concept
StageRaw Retail/
P P P P
MaterialExtraction
Manufacture ConsumerUse
Disposal
S D S M S D S DD
Green-SCOR Mapping
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GreenSCOR, integrated with SCOR 9.0, adds Best Practices, Metrics, and Processes to SCOR.
• Best Practices to green the supply chain (examples)– Collaborate with partners on environmental issuesCollaborate with partners on environmental issues– Minimize fuel/energy consumption– Minimize and reuse packaging materials
• Metrics to measure the effects of greening • Metrics to measure the effects of greening (examples)– Carbon and Environmental Footprint (proposed)– Energy Costs– Energy Costs– Units per Shipment
• Processes to capture waste managementM1 7 M2 7 M3 8 Waste Disposal– M1.7, M2.7, M3.8—Waste Disposal
EMS=Environmental Management System
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Environmental Best Practices were added throughout SCOR
Plan• Supply Chain partners collaborate on environmental issues
Plans created to minimize energy use
Example Environmental Best Practices
Plan • Plans created to minimize energy use
Source• Select vendors with EMS system in place• Establish environmental partnerships with suppliers
Make• Schedule peak production for of-peak energy demand times• Minimize packaging material
• Route to minimize fuel consumptionDeliver
Route to minimize fuel consumption• Retrieve packaging material for re-use
Return• Do not physically return product beyond economic repair• Take back product for recycling• Take back product for recycling
Enable• Implement an EMS and track environmental performance• Maintain equipment for fuel/energy efficiency
EMS=Environmental Management System11
Environmental metrics were added throughout SCOR
Plan• Compliance costs
Emissions cost per unit
Example Environmental Metrics
Plan • Emissions cost per unit
Source• % of orders receives with correct packaging• % of suppliers with current EMS system
Make• Energy costs as a per cent of production costs• Waste produced as per cent of product produced
• Fuel costs as per cent of Deliver costsDeliver
Fuel costs as per cent of Deliver costs• % of carriers meeting environmental criteria
Return• Products returned as percent of products delivered• Return products disposed of vs remanufactured• Return products disposed of vs. remanufactured
Enable• Facility energy costs as per cent of total costs• Down time due to non-compliance issues
EMS=Environmental Management System12
Proposed environmental footprint metrics leverage SCOR for environmental accounting.
• Environmental accounting is a current business concern.concern.– Carbon and greenhouse gas emissions– Other environmental impacts
• Currently there is not an agreed upon framework for • Currently, there is not an agreed upon framework for measuring the environmental footprint of the supply chain.
• SCOR provides a framework for defining the supply • SCOR provides a framework for defining the supply chain network and measuring the environmental impacts.
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Environmental footprint measurement is five metrics repeated at all three SCOR levels.
Metric Units Basis
Proposed Environmental Footprint Metrics
Carbon Emissions Tons CO2Equivalent
This is the unit of measure currently used for green house gas emissions and is a measure of the climate impact from CO2 and other global warming air emissions.
Ai P ll t t T k Thi ld i l d i i f j iAir Pollutant Emissions
Tons or kg This would include emissions of major air pollutants (COx, NOx, SOx, Volatile Organics (VOC) and Particulate). These are the major emissions that EPA tracks.
Liquid Waste Tons or kg This includes liquid waste that is either disposedLiquid Waste Generated
Tons or kg This includes liquid waste that is either disposed of or released to open water or sewer systems (these emissions are generally listed on water emissions permits).
Solid Waste Tons or kg The total solid waste generated by the processSolid Waste Generated
Tons or kg The total solid waste generated by the process.
% Recycled waste Per cent The per cent of the solid and liquid waste that is recycled.
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Environmental footprint metrics are summed across SCOR levels, like the existing Cost metrics.
Level 1 Total Carbon FootprintAir+Liquid+Solid-% Recyc=Total Environmental Footprint
Proposed Environmental Footprint Hierarchy
D1
S1 D1 S1 D1
S1 M2 D2 S2
Tier 3 Tier 2 Tier 1 Your Company CustomerM1 M1
Level 2 D1 S1 M2 D2 S2
S1 D1 S1 D1M1 M1 CarbonAirLiquidSolid% R
Level 2
Schedule productio
n
M2.1Issue
Product
M2.2Produce and Test
M2.3
Package
M2.4Stage
Product
M2.5Release Product D li
M2.6
% Recyc
Level 3 n Activities
Product and Test Product to Deliver
CarbonAirLiquidSolid% Recyc
CarbonAirLiquidSolid% Recyc
CarbonAirLiquidSolid% Recyc
CarbonAirLiquidSolid% Recyc
CarbonAirLiquidSolid% Recyc
CarbonAirLiquidSolid% Recyc
Level 3
% Recyc % Recyc % Recyc % Recyc % Recyc % Recyc
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A Waste Disposal process was added to make to capture waste management
M1: Make-to-Stock
M1.1
Schedule Production Activities
M1.2
Issue Product
M1.3
Produce and Test
M1.4
Package
M1.5
Stage Product
M1.6
Release Product to
Deliver
M1.7
“Activities associated with collecting and managing waste produced during the
Waste Disposal
waste produced during the produce and test process including scrap material and non-conforming product.”
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Green additions make SCOR a tool for managing environmental impacts of the supply chain.
• Processes to define the scope of supply chain operations and supply chain roles.operations and supply chain roles.
• Metrics for assessing and benchmarking the total environmental footprint of the supply chain.
• Best Practices for reducing the environmental • Best Practices for reducing the environmental footprint of the supply chain.
The GreenSCOR framework is a tool for structuring and communicating for structuring and communicating
environmental supply chain management programs to get faster,
repeatable collaborative results repeatable, collaborative results
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Questions?