Setting up a Green Supply Chain Many Executives and Managers wake up one morning; usually Monday after their children hear about recycling at the County Fair, and decide to immediately embark on a Green Supply Chain solution for their Company. 2. Develop a Financial Plan. Any long-term changes into any supply chain process cannot cost your company more money than existing practices or procedures. Prior to initiating any change, establish financial benchmarks such as a 5% reduction in fuel costs for forklifts or reduce 10% energy costs in warehousing operations. Remember maximizing Share Holder Wealth is your company’s bottom line. Going towards a Green Supply Chain can be directly correlated to "No Waste Logistics". 3. Determine Green Costs. With so many new companies entering the Green Supply Chain, now is the best time to receive quotes from multiple suppliers and it is only getter better as more suppliers gravitate towards a Green Supply Chain. Your adoption of a Green Supply Chain must not over-extend the company's resources. 4. Tax Implications. If you do not have a good Tax Lawyer on staff, recommend you seek out your local Public Library and search local statutes. An investment into a Green Supply Chain could save you further during tax season and offset some of the initial capital investment. 5. Get an IO Campaign. Information Operations (IO) is becoming more and more important as consumers want to save the environment and reduce waste. Too many large corporations post glamorous statements on saving the environment by going Green, but in reality the consumer will see through false or over-stated claims. Get smart on IO and public releases. A good example is the Holiday cry for Made in America toys as Chinese toy imports have been plagued with lead paint hazards forcing multiple toy recalls. 6. Know your Human Capital. For your company, there may already be a self-prescribed environmental guru or another department in your company has already transitioned to a Green Supply Chain. Seek out experts in your company. 7. Develop Implementation Strategy. Change management is difficult and many companies fail to achieve the desired end state. The five “W”s and a time line will drive your implementation strategy. Develop a power point slide graph with a single 45 degree glide path line and benchmarks with significant events every inch. Make it simple and input achievable dates. If you are using a sub-contractor or Green supplier, ask for a rough order magnitude of their implementation and incorporate into your strategy. If you have a Change Management team in your company ask them for assistance. 8. Develop Metrics. The statistical puzzle – what to measure and how to measure - do you use Six Sigma, lean logistics, Supply Chain Counsel models, Quad Chart, etc. Key Performance Indicators (KPI) that are reasonable, understandable, and attainable must be implemented along a time segment line. Do not let the metrics drive your decision cycle. If you do not have good processes, all the information in the world will not help your company become more efficient. 9. Monitor and Track Progress. Make the implementation fun by using games and breaking everyone down into smaller groups named after sports teams. Take the extra time to show you care about the project and you are engaged. Implement asset visibility along distribution process through RFID technology and establish dashboard metrics. Do not hand this over to a young staff member and expect success. By getting engaged, you will develop a stronger bond with your team and let them see you for who you really are. 10. Celebrate Success. Your team has accomplished something successful for your company, at a long-term costs savings. Corporate leadership will be impressed that you met your self-imposed mark and will remember. Your team members will exalt at their successes and the team building you created will have far reaching implications, which again will impress your Corporate leadership.
Is this a mistake?
No, it is a perfect impulse to:
A: make your children proud of your accomplishments;
B: give you a sense of being in the grander scheme of life; and
C: excite your team.
The following 10 steps are recommendations that we have developed as a guide to assist you prior to any brain-storming session with your team.
1. Determine your Green Goals. Every organization needs Goals that serve as a glide path to direct the organization. Establishing Green Goals is no different; however, change and change management are frustrating for most organizations. Establishing small Green Goals and the associated small transition steps may be more achievable and less frustrating for your team. Understanding the size of your company and its relation to competitors in the marketplace is key. Here are a few examples of Green Goals: reduce inventory with just in time logistics, eliminate supply chain redundancy, standardize practices throughout to eliminate waste, recycle packaging material, establish “kitting” deeper in your supply chain, adopt bio-degradable material in manufacturing process, implement an IT service orientated virtual architecture that will help support "No Waste Logistics".
Currently, Go Green Supply Chain.com is developing a CD-Rom with more detailed charts and graphs to show an effective transformation plan. Look for a spring 08 release.