Introduction To Greenscor: Introducing Environmental Considerations To The Scor Model
Introduction To Greenscor: Introducing Environmental Considerations To The Scor Model
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
As a proven Supply Chain Management model, SCOR is ideal as a Green Supply Chain tool.
Environmental Management
Green SCM recognizes the disproportionate environmental impact of supply chain processes in an organization.
Stakeholder Interests
Environmental Sustainability
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
Retail/ Use
Disposal
Raise Productivity Enhance Relations Support Innovation Enable Growth Emerging Value Creation
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
ADUSD L&MR (SCI)= Assistant Deputy Under Secretary of Defense, Logistics and Materiel Readiness, Supply Chain Integration
7
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
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
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
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.
Tons or kg
Tons or kg
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
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
15
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