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.
Specifically, the green supply chain

SCC leveraged previous research to introduce green into SCOR

Processes Best Practices Metrics

As a proven Supply Chain Management model, SCOR is ideal as a Green Supply Chain tool.

Green SCM integrates environmental and supply chain management.

Green Supply Chain Management

Environmental Management

Supply Chain Management Green Supply Chain Management

Green SCM recognizes the disproportionate environmental impact of supply chain processes in an organization.

Green SCM leverages the role of the environment in SC value creation.

Environmental Value Drivers
Tangible Outcomes

Green Supply Chain Programs

Profitability Asset Utilization Service Level

Supply Chain Value

Employee Satisfaction Customer

Stakeholder Interests

Environmental Sustainability

Reputation Continuity Alliances Technology Intangible Value Drivers

Source: Forging New Links, GEMI, 2004

Community Quality of Life

The product life cycle is the basis of green supply chain management.
Supply Chain in the Environmental Life Cycle
Designing the supply chain concurrently with the product is a supply chain management best practice.

Concept Design

Raw Material Transport Extraction

Manufacture Transport Consumer Transport

Retail/ Use

Disposal

Typical Supply Chain Scope

Now, GSC programs are moving from compliance to value creation.

Environmental, Safety, and Health Business Contributions Assure Compliance Minimize Risk Maintain Health Protect the Environment Traditional Cost Avoidance

Raise Productivity Enhance Relations Support Innovation Enable Growth Emerging Value Creation

Source: Forging New Links, GEMI, 2004

GreenSCOR was created to add environmental considerations to SCOR. 2002ADUSD L&MR (SCI) created GreenSCOR to understand the relationship between environmental and supply chain management. 2002-2007Greater community saw value of the approach
GreenSCOR won the SCC 2003 Award for Academic Excellence

2008GreenSCOR elements added into SCOR 9.0 as 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.

GreenSCOR Development

Environmental Management

SCOR Model

GreenSCOR modifies the existing SCOR structure to include environmental processes, metrics, and best practices.
8

GreenSCOR Model

GreenSCOR maintains the integrity of the current SCOR model by adding to the existing elements.

GreenSCOR focuses on the impacts of SCM in each stage of the product life cycle.
GreenSCOR Concept

Stage
Raw Material Extraction

Manufacture

Retail/ Consumer Use

Disposal

GreenSCOR Mapping
S

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 issues Minimize fuel/energy consumption Minimize and reuse packaging materials

Metrics to measure the effects of greening (examples)

Carbon and Environmental Footprint (proposed) Energy Costs Units per Shipment

Processes to capture waste management

M1.7, M2.7, M3.8Waste Disposal

EMS=Environmental Management System

10

Environmental Best Practices were added throughout SCOR

Example Environmental Best Practices

Plan Source Make Deliver Return Enable

Supply Chain partners collaborate on environmental issues Plans created to minimize energy use Select vendors with EMS system in place Establish environmental partnerships with suppliers Schedule peak production for of-peak energy demand times Minimize packaging material Route to minimize fuel consumption Retrieve packaging material for re-use Do not physically return product beyond economic repair Take back product for recycling Implement an EMS and track environmental performance Maintain equipment for fuel/energy efficiency
EMS=Environmental Management System
11

Environmental metrics were added throughout SCOR

Example Environmental Metrics

Plan Source Make Deliver Return Enable

Compliance costs Emissions cost per unit % of orders receives with correct packaging % of suppliers with current EMS system Energy costs as a per cent of production costs Waste produced as per cent of product produced Fuel costs as per cent of Deliver costs % of carriers meeting environmental criteria Products returned as percent of products delivered Return products disposed of vs. remanufactured Facility energy costs as per cent of total costs Down time due to non-compliance issues
EMS=Environmental Management System
12

Proposed environmental footprint metrics leverage SCOR for environmental accounting. Environmental accounting is a current business concern.
Carbon and greenhouse gas emissions Other environmental impacts

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 chain network and measuring the environmental impacts.

13

Environmental footprint measurement is five metrics repeated at all three SCOR levels.
Proposed Environmental Footprint Metrics

Metric
Carbon Emissions

Units
Tons CO2 Equivalent

Basis
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. This would include emissions of major air pollutants (COx, NOx, SOx, Volatile Organics (VOC) and Particulate). These are the major emissions that EPA tracks. 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). The total solid waste generated by the process.

Air Pollutant Emissions

Tons or kg

Liquid Waste Generated

Tons or kg

Solid Waste Generated

Tons or kg

% Recycled waste

Per cent

The per cent of the solid and liquid waste that is recycled.

14

Environmental footprint metrics are summed across SCOR levels, like the existing Cost metrics.
Proposed Environmental Footprint Hierarchy Level 1
Tier 3
S1 Total Carbon Footprint Air+Liquid+Solid-% Recyc=Total Environmental Footprint

Tier 2
M1 D1 S1

Tier 1
M1 D1

Your Company
S1 M2 D2

Customer
S2

Level 2

D1 S1 M1 D1 S1 M1 D1

Carbon Air Liquid Solid % Recyc

M2.1

M2.2
Issue Product

M2.3
Produce and Test

M2.4
Package

M2.5
Stage Product

M2.6
Release Product to Deliver

Level 3

Schedule productio n Activities

Carbon Air Liquid Solid % Recyc

Carbon Air Liquid Solid % Recyc

Carbon Air Liquid Solid % Recyc

Carbon Air Liquid Solid % Recyc

Carbon Air Liquid Solid % Recyc

Carbon Air Liquid Solid % Recyc

15

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
Waste Disposal

Activities associated with collecting and managing waste produced during the produce and test process including scrap material and non-conforming product.
16

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. Metrics for assessing and benchmarking the total environmental footprint of the supply chain. Best Practices for reducing the environmental footprint of the supply chain.

The GreenSCOR framework is a tool for structuring and communicating environmental supply chain management programs to get faster, repeatable, collaborative results
17

Questions?

jfrancis@supply-chain.org