Contents

The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies

Foreword

Preface

Part I: Applied Savings to the Collaborative Supply Chain

Chapter 1 Lean Sustainable Technologies

Putting It All Together

Creating the World-Class Company

Lean and Green Savings Using EDI

Certification Program and Scorecarding

References

Chapter 2 Warehouse Management System (WMS)

System Integration with the WMS

The Functionality of the WMS

Metrics Used in a WMS

Improve Inventory Management

The Improved Warehouse Worker Productivity

Improved Transportation Performance

Radio Frequency (RF) as a Warehouse Management System—An Introduction into RF Systems Used in the Distribution Centers

The Importance of the Voluntary Interindustry Commerce Solutions Association to the Industry

The Applied RF Analysis: Receiving, Directed Putaway, Stocking, and Order Filling

The Applied RF Metrics Used in the Distribution Centers

References

Chapter 3 The Use of Radio Frequency Identity Tags in Industry

Case Studies of Two Industries: The Medical Environment and the Distribution Industry

References

Chapter 4 Transportation Management System (TMS)

References

Chapter 5 Savings of B2B E-commerce

The Vendor Portal

The Customer Portal

The Distribution Portal

Green IT

References

Chapter 6 The Introduction of Enterprise Resource Programs (ERP)

Business Processes and Analytics Features That Can Add to the ERP Software Solution

CRM Features

Financials Features

Human Resource Management Features

Manufacturing Features

Supply Chain Management (SCM) Features

The Quantifiable Benefits of an ERP System

ERP’s Sustainable Drive to Green

The Collaborative Sustainability Scorecard or KPI

References

Chapter 7 Third-Party Provider

Multimodal

Onsite Supplier

Network Optimization

Benefits of a 3PL

Lean Savings

Green Savings

References

Chapter 8 Inventory Control

Pareto ABCDE Classification of Inventory

Chapter 9 Promotional Forecast System

Lean Savings for Promotional Forecast Program

Chapter 10 An Introduction to Distribution Resource Management

Container Delivery Management

Chapter 11 Joint Order Allocation

Lean Savings

Green Savings

Chapter 12 Variable or Fixed Reorder Periods

Fixed Period Model (FP)

Fixed Order Model (FQ)

Variable Period and Quantity Model (VPQ) with Look-Ahead

Chapter 13 Furthering Collaboration with Suppliers (CPFR)

The New CPFR Model

Collaborative Transportation Management

References

Chapter 14 Material Handling Technology, Voice Pick, and Pick to Light Technologies

Batch Order Summary Sheets

The Installation of the RF System

The Receiving Process and the Stocking Process

References

Section I: Introduction to an Application of Lean, Green Supply Chain Management External

Chapter 15 The Visual and Visible Supply Chain

The Visual Supply Chain

The Visible Supply Chain

Chapter 16 Master Data Alignment and Item Synchronization

References

Section II: Introduction to an Application of Lean, Green Supply Chain Management Internal

Chapter 17 Internal Supply Chain

Environmental Facts

Designing a Paperless Environment with Software

Mobius Software: A Division of ASG Software

System Advantages

Oracle Content Management

References

Part II: Technical Sections

Chapter 18 A Technical Explanation of Forecasting Systems

The Algebraic Model

Multivariate Regression Models

Trigonometric Models

The Logistics Model

The Logarithmic Models

Exponential Smoothing

Dispersion of Demand

Finding the Correct Forecast Model

Chapter 19 Forecasting Methodology and Gamma Smoothing: A Solution to Better Accuracy to Maintain Lean and Green

Introduction of Gamma Smoothing

A Comparison Using Gamma Smoothing and Exponentials Smoothing

The Trend Section of Gamma Smoothing Using TI

Chapter 20 The Characteristics Needed in a Forecast Program

Chapter 21 The New Sustainable EOQ Formula

The Old Economic Order Formula

The New Economic Order Formula

The Green Effect of the New EOQ Formula

Chapter 22 Consequences of the Industrial Revolution

References

Chapter 23 Different Organizations’ Green Supply Chain Management and LEED

References

Chapter 24 Case Study: Sweetwater Sound

Sweetwater Case Study

References

Chapter 25 Case Study: Behavioral Health

Case Study of the Six Sigma DMAIC Approach in Health Care

Appendix A The Summary of the Lean and Green Technologies

Index

Creating a Sustainable Organization: Approaches for Enhancing Corporate Value Through Sustainability

Chapter 1 Introduction

Major Themes and Messages in This Book

A Few Disclosures and Caveats

Endnotes

Chapter 2 Background and Context

What Is Sustainability, and Why Is It Important to Business?

Why Sustainability Is and Will Remain Important to U.S. Corporations

Where We’ve Been and What We’ve Learned

What ESG/Sustainability Investing Is and Why You May Never Have Heard of It

Major Factors, Actors, and Trends

ES&G Concerns as Key Requirements and Determinants of Long-Term Business Success

Implications for Sustainability Professionals and Others Working on Corporate Sustainability Issues

Endnotes

Chapter 3 ES&G Issues and How They Affect the Business Enterprise

Environmental, Health and Safety, and Social Equity Laws and Regulations

An Abridged History

Corporate ES&G Obligations

Legal Liability

Stakeholder Expectations and Nonlegal Requirements

Costs and Cost Structure

Revenue Impacts

Organizational Strength and Capability

Endnotes

Chapter 4 Stakeholder Interests and Influences and the Social License to Operate

The Social License to Operate

Major Company Stakeholders

Typical Stakeholder Involvement in and Influence on Corporate Behavior

Endnotes

Chapter 5 Managing ES&G Issues Within the Organization

Relationships Among and Between EHS, Social, and Governance Issues

Effective ES&G Management Structures and Practices

Integrating Sustainability into the Company’s “Organizational DNA”

Endnotes

Chapter 6 Investors and the Power of Markets

Market Theory and Underlying Assumptions

Who Investors Are and What They Care About

Size and Composition of U.S. Capital Markets

Disclosure

Institutional Investors and Fiduciary Duty

Traditional and Emerging Security Evaluation Methods

Socially Responsible Investing (SRI) and ES&G Investing

ES&G Evaluation and Investing Methods

Barriers to ES&G Investing

International Situation and Trends

Analysts, Rating Agencies, Data Providers, and Other Intermediaries

Trends and Potential Game-Changers

Summary and Implications

Endnotes

Chapter 7 The Financial Impact of Effective (or Ineffective) ES&G/Sustainability Management

Insights from the Literature

Surveys of Corporate and Investor Attitudes and Beliefs

Summary and Implications

Endnotes

Chapter 8 Defining, Measuring, and Reporting ES&G Performance

Why Performance Measurement and Reporting Are Crucial

ES&G Data, Information, Knowledge, and Insight

Major ES&G Data Types and Sources

Creating Knowledge and Insight from Corporate and Industry ES&G Information

Key Needs and Gaps

Sustainability Reporting: Extent of Use

Evaluation of Current ES&G Reporting Practices, Limitations, and Trends

ES&G Research and Analysis Firms

Potential Improvements

Endnotes

Chapter 9 Making It Happen in Your Organization

Creating Sustainable Value for the Enterprise

Implications for Sustainability Professionals

What It Takes

Closing Thoughts

Endnotes

References

Index

Sustainability in Supply Chain Management Casebook: Applications in SCM

Part 1 Disaster Response: Social and Financial Impacts

Chapter 1 The Armenia Earthquake: Grinding Out an Effective Disaster Response in Colombia’s Coffee Region

Alfonso Pedraza Martinez, INSEAD; Catalina Estrada Mejia, UniAndes School of Management; Orla Stapleton INSEAD; Luk Van Wassenhove, INSEAD

Introduction

The Earthquake

The Relief Chain

Planning and Preparedness

Assessment

Resource Mobilisation

Financial

Human Resources

Organisational Set-up

Procurement and Donations

Transportation

Tracking and Tracing

Stock Asset Management

Extended Relief to Beneficiaries

Monitoring, Evaluation and Reporting

Coordination and Collaboration

Conclusion

Appendix 1

Glossary of Organisations

Chapter 2 Resilient Response and Recovery at Western Digital: After the Thai Flood

Joe Bunya, Western Digital; Christopher Tang, UCLA

Thailand Floods in 2011

Western Digital in Thailand

Before the Flood—Identifying, Assessing, and Mitigating Risks

During the Flood—Resilient Response

After the Flood—Speedy Recovery

The Sun Shines Again

Chapter 3 Global Effect of a Natural Disaster on a Lean Supply Network

Mark Dolsen, Wayne State University and Tokai Rika Group North America-Quality Safety Systems Company (TRQSS), Dr. Ratna Babu Chinnam and Dr. Kenneth Chelst, Wayne State University

Breaking News—Friday, March 11, 2011

Background of TRQSS, Inc.

Assessment of the Supply Base

Trouble from the Other End of the Chain

Preserving the Culture in a Downturn

What’s Next?

Chapter 4 Honda Automobile (Thailand) and Its Supply Chain Disruption

Kraiwinee Bunyaratavej, Wesley College

Honda Automobile (Thailand) History

The Big Flood

Financial Impact

Other Plants

Part 2 Organizational Change, Environmental Sustainability, and Financial Analysis

Chapter 5 Going Green: The Pfizer Freiburg Energy Initiative (A)

Sam Aflaki and Paul Kleindorfer, INSEAD

Pfizer and the Pharmaceutical Industry

Becker’s Portfolio: The Freiburg Energy Master Plan

The Wood-Pellet Boiler Project

Role of the Portfolio of Projects within Pfizer’s Sustainability Agenda

The Decision

Appendix 1

Kyoto Protocol, CO2 and Emissions Trading

Chapter 6 Sandvik Coromant Recycling Concept

Gal Raz and Michel Schlosser, University of Virginia

Industry Overview

Tungsten and Cobalt

Company Overview

Sandvik Tooling’s Supply Chain

Manufacturing

Logistics

R&D and New Product Development

Multibranding

Cooperation with Customers

Quality

Organization and Culture

Organization

Culture

The CRC at Sandvik Tooling

Cemented Carbide Recycling

History

The Reverse Supply Chain

In-house or Outsource?

Environmental Impact

Pricing of Scrap

Local Sales Organizations: The U.S. Example

Chapter 7 HeidelbergCement: Technology Choice Under Carbon Regulation

David Drake, Paul Kleindorfer, and Luk Van Wassenhove, INSEAD

History, Growth and Landscape

The History of HeidelbergCement

The Competitive Landscape

The Emergence of a Carbon Economy

From Kyoto to Carbon Credits

The European Union Emissions Trading Scheme

Emissions Regulation in European Cement

Cement Operations and Carbon Impacts

Kiln Operations

Fossil, Alternative and Biomass Fuels

Cement Blending and Clinker Substitution

On the Horizon—Carbon Capture and Storage

The Benelux Cluster

A Question of Impact and Survival

Chapter 8 Electronic Waste: What to Do with It?

Steven Leon, University of Central Florida

A Day at the Office

Technology Changes

Repercussions of Changing Demand for CRTs

Industry Responsibility

Government Intervention

Supplier Oversight

Good News

Part 3 Sustainability Throughout the Supply Chain

Chapter 9 Better Tomorrow at Sodexo North America

Jan Bell, S. Sinan Erzurumlu, Holly Fowler, Babson College

Introduction

Sodexo: Corporate Overview

Supply Management Group

The Better Tomorrow Plan

Sustainability Strategy and Priorities at Sodexo North America

“We Do” Protect the Environment at NORAM

Energy and Emissions

Water and Effluents

Local, Seasonal, or Sustainably Grown or Raised Products

Sustainable Fish and Seafood

Moving Forward

Chapter 10 GroBaby Foods: Green Sourcing

Sheneeta W. White, University of St. Thomas

Introduction

Company Background

Competitive Pressures

Infant Purée Production

The Supply Chain

The Sourcing Strategy

Developing a Green Sourcing Strategy

The Challenge

Discussion Questions

Chapter 11 Reducing Pollution Through Green Logistics

Tom McNamara, ESC Rennes School of Business and Erika Marsillac, Old Dominion University

Sources

Part 4 Social Sustainability Through Innovation

Chapter 12 Bosch: Creating Innovations Through Active Collaborations

Marina Mattera, Universidad Europea de Madrid

The Base of the Pyramid (BoP)

Open Innovation

Open Innovation: Robert Bosch GmbH

Continued Financial Success

Business Sectors

Automotive Industry

Industrial Technology

Consumer Goods and Power Tools

Social Responsibility

Innovation Production: R & D and Operations

Bosch’s R & D Infrastructure

How to Proceed When Conducting R & D and Operations

Collaborations

Innovation Production: Processes and Products

Processes and Procedures

Products

Conclusion

Questions

References

Chapter 13 Max Foundation (A): Saving Children’s Lives Through Business Model Innovation

Martijn Thierry, Strategy Consultant and Luk Van Wassenhove, INSEAD

I. Creating Something Positive Out of a Tragedy

II. The Vision and the Search

III. Building the Base in the Netherlands

IV. The First Steps in Bangladesh: Learning While Doing

V. Challenges at Home

VI. Increasing Presence in Bangladesh

VII. Envisioning the Next Step

Max Foundation: Saving Children’s Lives Through Business Model Innovation (A) and (B)

Appendix 1

Pictures of Joke and Steven in Bangladesh

Appendix 2

Additional Information on the Implementation Partners in Bangladesh

Overview

Some Partner Specific Information

Chapter 14 Max Foundation (B): What Is the Best Route Forward?

Martijn Thierry, Strategy Consultant and Luk Van Wassenhove, INSEAD

I. Finding Partners for Growth

II. Measuring and Analysing Impact for Better Performance

III. Developing One Marketing Strategy for a Specific Donor Segment

Chapter 15 NH: Innovation and Knowledge Production Through Active Stakeholder Management

Marina Mattera, Universidad Europea de Madrid

Creation of Innovations

Knowledge Production and Diffusion Life Cycle

Tourism Industry

NH Hoteles History Overview

Corporate Profile: Mission, Vision, and Values

Knowledge Life Cycle at NH

Business Process Environment

Questions

References

Index

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