Designing Sustainable

Supply Chain Systems

Joseph Fiksel

Executive Director

Resilience.OSU.edu

Resilience

The capacity to survive, adapt, and flourish in theface of turbulent change

Safety & Business

Continuity

Long-Term Strategic

Sustainability

Our Expanding Footprint

“If every human alive today consumed natural resources and emitted carbon dioxide at the same rate as the average American, European , or Australian we would need at least another two earths.”

- WWF International

Sustainable Materials Management

Waste Recovery

Natural Systems

Renewable Resource Stocks

Non-renewable Resource Stocks

Industrial Systems

Energy Production

Product/Service Supply Chains

Societal Systems

Consumable Product Use

Durable Product Use

Material& Energy

Harvesting

DemandFulfillment

Direct Utilizati

on Energy Use

Finite Media

Service Use

Energy Sources

Direct Labor

Waste & Emissions

HumanImpacts

Capital Stocks

EcosystemGoods & Services

EconomicGoods & Services

Source: J. Fiksel, “A Framework for Sustainable Materials Management,” Journal of Materials, August 2006.

Full ecologicalfootprint

Ecosystem goods and services –

embedded natural capital

The Hidden Mountain of Resource Use

Supply chainFootprint

€ $Purchased

goods & services(indirect)

Life Cycle Assessmen

t (LCA)

Direct resource consumption

Paradigm Shift

Material-Based

Economy

• Throughput

• Products

• EconomicCapital

Value-Based

Economy

• Knowledge

• Services

• Human Capital

Less Stuff—More Value

Life Cycle Thinking

Customers

SuppliersAssets

Contractors

Natural Resources: Energy, Water, Materials, Services

Communities

Employees

Recycle

Design

SourceMake

Deliver

Support

Measure

CorporateSustainability

Enterprise Strategies

DevelopingSustainable

Products

Preventing Pollution

at the SourceConverting Wastes

into Resources

Substituting Services for

Products

Collaborative Networks

and Partnership

s

Adapted from World Business Council on Sustainable Development

Eco-efficiency

Value Out Resource In

Greening of Consumer Products

Greening of Service Industries

By-Product Synergy Networks

Industrial ecology is a process systems approach that mimics natural cycles, converting

waste into “food”

“By-product synergy (BPS) is the matching of under-valued waste or by-product streams from one facility with potential users at another facility to create new revenues or savings with potential social and environmental benefits.”

- U.S. Business Council for Sustainable Development

Eco-Flow™ Industrial Ecology Optimization

Kansas City Network

Systech

Cook Composites & Polymers

Gerdau-Ameristeel

Hallmark

KCMOSolid Waste

Lafarge

Harley Davidson

KC Power & Light

Hallmark

Harley Davidson

CCP

Missouri Organics

Gerdau-Ameristeel

Alternate fuels

Alternate materials

FiltrationFinishingCleaning

Metal parts

Alternate fuelsErosion controlConfetti/crafts

Packaging dunnage

Painting/CoatingPaint stripping

Iron source

CompostingErosion control

EnergySolventsCleaningCoating

Shredder residueMillscaleFerrous metalsFurnace dust Railcar debris

Polyester resinSuper SacksGel coats

PolyethyleneSolid wasteFood waste

AppliancesWood chipsGlass

PolydrumsPalletsRubberPlastic

MetalsAlkalinesAbrasivesSolid waste

FGD sludgeFly ashWood chips

Scrap materialsPackagingWaste ink

Paint sludgePowder paintSolventsUsed oils

Potential Savings: $15 million

Economic Products &

Services

NaturalCapital

Ecosystem Products &

Services

Economic Capital

Sun

Accounting for Natural Capital

ConsumersEco-LCA™

Life Cycle of Industrial Materials

Materials Production

Supply

Chain

Processes

Utilization &

Consumption

Processes

Residual Materials

Revalorization

ValueExtractionInputs

ValueCreation

Recycled Parts &

Materials

Energy

Recovery

Processes

Products

By-Products

Outputs

Virgin Materials

Waste & Emissions

ExtractionEnvironment – Natural Capital

Disposal

Non-Product

Automotive Fuel Analysis

Return on

Energy

Renewability

Corn Ethanol

Crop Cellulosi

c Ethanol

Biodiesel

Gasoline

8

6

4

2

0

0% 50% 100%

Source: A. Baral and B. R. Bakshi, “The Role of Ecological Resources and Aggregate Thermodynamic Metrics for Assessing the Life Cycle of Some Biomass and Fossil Fuels”, Environmental Science and Technology, 2009

MSW Cellulosi

c Ethanol

Material-Energy-Water Nexus

Energy

Materials

Water~ 100 liters per $

~ 1 kg per liter

~ 0.5 kWh/M

T

~ 100 liters/kWh

~ 0

.5 M

T/kW

h~

3 k

Wh

per $

excludes ecosystem

services

EnvironmentalFootprint

Greenhouse GasEmissions

Persistent ToxicEmissions

Solid WasteIntensity

WaterIntensity

Non-RenewableResource Intensity

EnergyIntensity

Land Intensity

Progress Indicators

SocietalValue

Energy Efficiency

Health & safetyImprovement

AssetRecovery

ResourceConservation

PovertyAlleviation

Human NeedFulfillment

EconomicDevelopment

Design for EnvironmentJoseph FikselMcGraw-Hill, July 2009

Disruptive Innovation Product Development Process Eco-Efficiency Life Cycle

Management Business Value

Creation Supply Chain

Sustainability