“Benefits of Creating A Local Supply Chain”
Watertown Chamber
“Lunch for Success Stories Program”
May 16th, 2013
Presented by:
Lisa Geason-Bauer, President
Evolution Marketing llc
262-354-0341/ Lisa@greenmkting.com
Why is this topic important?
• Facet of the buy local, shop local movement
• Viability of/for your organization
• Needs all tools you can get in todays world in
order to stay competitive
• Changing world & global marketplace
• Scarcity of natural resources
Backdrop for change
•Wal-Mart – 2005 set of goal of decreasing their
CO2 by 20%, by 2012. The company’s 2011 data
showed a drop in emissions 20.02 percent
below its 2005 baseline for the existing facilities.
• Sustainability Consortium founded in 2009
- 2013– 85 + members
- working groups for major areas across globe
-focused on life cycle analysis for all products
- goal to compare across all products
http://www.sustainabilityconsortium.org/
New Normal
• Shaped by Wal-Mart’s Sustainability Index
(2009) (this has revolutionized the way suppliers
and producers think)
•Wal-Mart wants its suppliers to reduce 20
million metric tons of greenhouse gas emissions
by the end of 2015 (announced in 2010)
• Many suppliers/manufacturers are being asked
to disclose key factors associated with their
operations
Lots of ways to measure supply
network success
• Food miles (i.e. how far has food traveled)
many grocery stores are focusing on labeling
“local” food items
• Chain of custody certification – FSC (toilet
paper, paper towel, printer paper, wood, doors etc)
https://us.fsc.org/
• Cradle to Cradle Certification (cleaning products,
baby care, textile & fabric, building materials, interior
design )
http://www.c2ccertified.org/about
Key Supply Chain Management Factors to consider
• Reduced Costs - cradle to cradle analysis
• Increased Efficiency through strategic planning
& management of resources
• Increased output from workflow analysis
• Foster close-knit relationships with suppliers
and customers
• Increased profits through smart sourcing of
materials from local or regional market places
• True costs used in cost comparison (i.e. true
cost for natural resources)
Evolution Marketing supply
network story
• Transparency in sourcing, carbon calculations
• Legitimacy in services offered & trusted
recommendations (consulting)
• Cost effective options that are high quality
• Why not take advantage of the local supply
network?
Unintended benefits
• scraps/trimmings
cut from recent
Evolution Marketing
collateral items are
composted at Print
House
Customer
Appreciation
• Rose
bushes love
fertilizer!
CASE STUDY :
Cost effective management of local supply network
•
•
•
•
•
Maximizes local resources
Able to be more competitive for pricing out services
Quicker turn around (due to local paper sourcing)
Greater Flexibility in meeting client needs
Paper market is very volatile (consumer can see big
price fluctuations based on when something is quotes)
with local sourcing – better able to maintain consistent
pricing
• More opportunities available for paper procurement &
special pricing (reduction in shipping costs)
• Benefit is transparency in supply chain
CASE STUDY:
Egg cartons & printed labels
Updated brand & new label
Implementation of local supply network
• New label is larger, covers the entire top of the
egg carton and the front/back sides
• Printed with vegetable based inks
• Printed by a local printer
• Paper sourced for the labels (Crack & Peel) is
made in WI
• Local delivery available with order
• Further able to demonstrate farms
sustainability
Supply Network Benefits
• JRS Country Acres has an added level of
flexibility regarding their distribution network
(i.e. they can respond quicker to market
demands)
• Increased control of product supply chain
• Availability to order in smaller quantities
• Strategic sustainability – due to all local
suppliers, there is better collaboration between
design house, printer and JRS
Business
Benefits:
• Cost effective sourcing (higher quality) for the
same
price
as
original
label
• New Design/Label increased sales by 30%
Supply Network Challenge
Background :
a.
Only three pulp egg carton manufacturers in
US and Canada. Two have the flat top cartons with
tabs far apart, one has flat top with tabs in the
middle. One of the two had a fire last year and are
still not done rebuilding, so that leaves one
company (in Canada) producing the cartons we
need.
b. Numerous times in the past year we have
been shorted cartons because of short supply and
had to improvise with some of our customers.
Solution: sustainable packaging
CASE STUDY
Supply Chain helped organization to
define their sustainability initiatives
FOTODYNE Inc. defined sustainability in terms of
their products and specifically within their
supply chain. They went as far as to design
their products based on WI/Midwest Suppliers
Benefits:
• increased product turn around time which leads to
better customer response time
• added more control/flexibility to supply chain
Take home message
• Understanding your organizations
supply network is good for business.
• Strategic Sustainability
Questions ?