The Carbon Benefits of Recycled Materials

The benefits of avoiding extraction and primary processing are usually significant, even when collection, transport and reprocessing of recycled material is taken into account.

An increasing range of recycled products are coming onto the market, such as glass, steel, aluminium, plastics and paper. Usually calculating the carbon benefit is reasonably straightforward. As the final products must perform to similar standards (whether from virgin or recycled materials) in order to compete in the market place, the carbon footprint during their ‘use phase’ will also be very similar.

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Cutting Carbon in the Supply Chain

For many manufactured products, the majority of their carbon footprint comes from energy used in extracting, refining, processing, manufacturing and transportation.

There are several options for reducing the carbon footprint:
· redesign manufacturing process; use alternative raw materials and new technologies to find energy efficiency savings
· shorten supply chains; reduce CO2 from transport
· Use / purchase renewable energy; renewable energy produces (almost) zero carbon
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The Multiplier Effect

If you want to really use your buying power to make a environmental difference, make sure that any “green” criteria for vendor selection are widely publicized so that your suppliers’ competitors hear about them too.
In this way, encouraging a change in one supplier can have a “multiplier effect” on many others.

via Negotiating Nugget | Propurchaser.

Green Procurement: knowledge is power

To actually make your supply-chain more green, the first step is to understand what the main environmental impacts are and where they occur in the supply chain or product lifecycle.

I intend to write about what purchasing professionals can actually do to ‘green’ supply-chains and lower their organization’s carbon footprint. My goal is to stimulate ideas and debate; so please feel free to comment or add your ideas.

Increased public awareness, scrutiny from environmental groups, regulatory pressure and concerns about climate change has led companies in a race to establish their eco-credentials; through removing harmful but regulated substances like phthalates (often found in PVC) from products, changing palm oil suppliers to save rainforests, and setting huge targets to remove carbon emissions from supply chains. For many companies, their products’ biggest impacts, and therefore risks and opportunities, are from the supply chain in the production, extraction, cultivation, and transport of raw materials.

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Sustainable Purchasing and Supply Summit 2011

Congratulations to the event organizers and CIPS for putting together an excellent program for the inaugural sustainable purchasing summit in London.  Some very interesting topics and speakers.

http://www.revolutionevents.plus.com/spss/programme.html

One of the stand-out messages from the day is that sustainable purchasing is delivering substantial and measureable benefits for businesses embracing the concept. The time and money invested to make CSR (Corporate Social Responsibility) part of the supply-chain is paying dividends and delivering serious ROI. Reported benefits come from areas such as:

• Financial savings; cutting costs through lean production and avoided risks

• Stakeholder goodwill; enhanced collaboration and innovation

• Corporate values; brand image, recruitment and retention of staff

• Marketing; protecting and increasing sales

• Improved risk management; compliance and regulation

However, embedding CSR in a supply chain remains a significant challenge for a host of reasons, not least because you can be exposed to new risks.  Fortunately, there is a growing body of expertise, tools and good practice for purchasers to draw on. Whatever the size and type of business you work for, the message is clear: Sustainable Purchasing is growing in importance, it pays dividends, and is here to stay.

To learn more about supply-chain CSR, you are welcome to contact Tom.Bowers@propurchaser.com

Leaning towards Green

At the recent Sustainable Purchasing and Supply Summit in London last week, the point was made that Lean production is really the first step toward Green production.

If your business is manufacturing, or even if it’s not, I’ll wager that you have heard of the Lean production principles. The concept is simple: Increase the bottom line by reducing waste of all kinds across all areas of the business. Optimize your processes and work smarter so that resources are only expended to provide value to your customers. Lean is the current king of manufacturing philosophies and is likely to remain that way for a long time to come.

At the Sustainable Purchasing and Supply Summit, in London last week, the point was made that Lean production is really the first step toward Green production. Reducing raw materials use, reducing the size (and thus the energy expenditure) of inventories, and minimizing waste be it in energy/resource use or reworking of faulty goods.

These are Lean principles – these are Green principles – these are ‘good-for-the-bottom-line’ principles

One of the challenges for purchasers in a Lean and Green business environment is to maintain the principles throughout the Supply chain. Procuring recycled or refurbished goods where possible, working with suppliers to ensure energy use (and price) improvements and taking a longer term view on cost-benefit analysis can all help steer your business down a truly sustainable and profitable path.

To learn more about sustainable supply-chain best practices, you are welcome to contact Dr AA Wade, archie@virescentconsultants.co.uk