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.

2

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.

3

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

7

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?

jfrancis@supply-chain.org