2010 Green Supply Chain Awards

'Sustainability Becomes Strategic'

ADTRAN Builds Sustainability into Its DNA
ADTRAN (Huntsville, Ala., adtran.com), a provider of networking and communications equipment for use in the "last mile" of telecommunications networks, has undertaken a variety of sustainability initiatives, managed by its Green Communications Committee. In supply chain, the company has requirements for its subcontractors to be TL9000 and ISO 14001 compliant and to comply with a code of ethics for sustainability. The supply chain group also has reduced airfreight and added shipping lanes to reduce the company's carbon footprint. And ADTRAN has worked to incorporate sustainability into the DNA of the company's culture, embracing Design for Green and reengineering packaging design to be lighter and denser, and to utilize eco-friendly packaging material.

Black Diamond Equipment Reduces Its Carbon Footprint
A leading brand in climbing, mountaineering and ski gear, Black Diamond Equipment Ltd. (Salt Lake City, blackdiamondequipment.com) has leveraged a global distribution center in Zhuhai, China, to consolidate product for onward shipping to the company's regional node distribution centers in Europe and the United States, and to independent distributors worldwide. Consolidation at the China-based global DC allows Black Diamond to optimize containerization of goods, and to minimize the total handling and transportation of goods. To date, Black Diamond has seen a 45 percent decrease in the volume of freight destined for international markets that is shipped via its US distribution center before on-forwarding to global markets, a 60 percent decrease in the volume of freight shipped via air, and an increase in the total volume of freight that ships direct to customers from the global DC, which minimizes inland transportation. In the future Black Diamond plans to introduce similar programs in other global markets with an eye towards minimizing its carbon footprint through shipping efficiency.

Cargill Commits to Sustainable Palm Oil Production
Minneapolis-based Cargill (cargill.com) announced in July that it is collaborating with the World Wildlife Fund-U.S. (WWF) to undertake an assessment of its palm oil suppliers in Indonesia as part of the company's commitment to sustainable palm oil production. The assessment is aimed at help to gauge current progress among Cargill's suppliers in implementing the principles and criteria established by the Roundtable on Sustainable Palm Oil (RSPO). The company said it would use the assessment as a basis to address gaps against the RSPO standard and will work with suppliers to implement solutions to improve sustainable palm production practices.

Cathay Pacific Airways Works with Suppliers
Hong Kong's flag carrier Cathay Pacific Airways Limited is incorporating sustainable purchasing and responsible supply chain practices throughout its procurement process and into its supply chain. Its approach on sustainable procurement has been to encourage suppliers to improve their sustainability practices through capacity building and sharing knowledge and best practices. At the same time, the international airline has demonstrated a strong preference for suppliers that publicly report upon and measure their environmental impact and seek to improve the impact of their operations upon the environment. It also has a strong preference to select suppliers whose goods or services can make a significant difference to reducing the company's environmental impact.

Celestica Takes a Total Cost of Ownership Approach
Electronics manufacturing services provider Celestica (Toronto, celestica.com) has deployed a Total Cost of Ownership program through which its measures Celestica-sourced suppliers in a number of categories – going well beyond the "invoice price." Sustainability is an important aspect of this measurement process and one of the elements required for inclusion as a Celestica preferred supplier. The sustainability element includes product bill of material assessments on design for recycling; design for environment friendly packaging; design to eliminate hazardous substances; and design utilizing carbon footprint analysis.

Cisco Systems Rests Sustainability on Four Pillars
Networking technology leader Cisco Systems (San Jose, Calif., cisco.com) has put in place a value chain sustainability strategy that applies four fundamental pillars of sustainability to every state in the lifecycle of its products. The four fundamental pillars labor rights; human health & safety; effective use & preservation of natural resources; and product integrity & security. The company's objective is to embed sustainability into its routine business practices, across and though its value chain. In terms of metrics, Cisco has adopted widely accepted metrics and methodologies that also resonate with its suppliers, industry peers and stakeholders.

Half Price Books Gets Smart about Transportation
Discount bookseller Half Price Books (Dallas, halfpricebooks.com) is a SmartWay EPA partner and the founder of the environmental Web site BecomeGreen.org. The company works with transportation partner JB Hunt, who stakes a claim as having the most fuel-efficient trucking fleet in the United States due to its aerodynamic trucks and no-idle capabilities. Half Price Books utilizes Manhattan Associates SCALE software to manage its complex distribution process and keep its supply chain as efficient as possible.

ID Label Diverts Waste
Lake Villa, Ill.-based ID Label, Inc. (idlabelinc.com) is diverting150 tons of waste (90 percent of its annual waste) to a recycling facility after installing a waste compactor and waste matrix sucker system. The cost is a wash compared to using a waste removal company to dump the waste in a landfill. Greenwood Fuels in Green Bay, Wis., transforms the waste into fuel pellets that are sold to the utility companies. Bonus: The fuel pellets burn cleaner and more efficiently than coal.

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Novartis Animal Health Eliminates Paper
Deriving its name from the Latin words novae artes meaning "new skills," Novartis Animal Health (Greensboro, NC, ah.novartis.com) is learning new ways to reduce its environmental impact through the automation of its B2B e-commerce transactions. By outsourcing this program to GXS, the company has eliminated the use of paper POs, ship notices and orders, and invoices – to the tune of nearly 17 tons of paper a year at its US location alone.

Novation Looks to the Supply Base
Healthcare supply contracting company Novation (Irving, Texas, novation.com) has asked its more than 500 suppliers to incorporate sustainability into their company practices, advising them to consider ways to implement eight specific sustainable practices. Those practices include minimizing packaging; using recycled and recyclable content in products and packaging; supporting device re-manufacturing; disclosing all information regarding the chemical and material composition of products and reducing the use of materials of concern; reducing the amount of energy and water in manufacturing and distribution; investing in the use of alternative energy sources for manufacturing and distribution; moving toward sustainable and renewable raw materials; and supporting organizations that extend the life of surplus equipment and supplies.

OfficeMax Manages Energy Demand
Office supplies company OfficeMax (Naperville, Ill., officemax.com) embarked in 2005 on an aggressive plan to significantly reduce its carbon footprint by conserving energy while delivering operational efficiencies and cost savings. The company has focused on energy demand management, for example, by investing the capital required to retrofit all its retail stores with t-8 lighting with electronic ballasts. Energy management systems (EMS) were also installed in all OfficeMax locations, which allow Mike Williams, senior director of strategic sourcing, and his team to centrally manage lighting and HVAC. Results to date: CO2 emissions overall declined 37 percent from 2005 to 2009, while CO2 emissions per square foot declined 44 percent over the same period. Kilowatt per hour (kWh) usage per square foot dropped 45 percent in that time.

PUMA Commits Its Strategic Suppliers to Sustainability Reporting
German sports apparel company PUMA (puma.com) is requiring its top suppliers in South East Asia and other major sourcing regions to issue their own sustainability reports from 2011 forward as the company works to increase transparency as well as social and working conditions in its supply chain. Strategic PUMA suppliers based in China, Vietnam, Cambodia and other countries — which together produce together more than two-thirds of all PUMA products consumed — are receiving Global Reporting Initiative (GRI)-certified training on transparent measurement and reporting on their sustainability performance using the GRI G3 Guidelines, the world's most widely-used framework for sustainability reporting.

Unisource Worldwide Asks Suppliers to Complete Sustainability Scorecard
Unisource Worldwide (Norcross, Ga., unisourceworldwide.com), a distributor of paper, packaging and facility supplies, is now asking its suppliers to complete a sustainability scorecard to ensure that environmental responsibility is being practiced and assessed according to standard industry procedures. Unisource's program is based on the Walmart Sustainability Scorecard, which was first announced in July 2009 and is now viewed as best practice in the area of corporate sustainability, according to Unisource. This environmental appraisal tool offers an in-depth look based on 15 questions Unisource is asking of its suppliers. The scorecard serves as a comprehensive response for the information required to complete the sustainability assessment and explores in great detail the business case and potential benefits for companies to measure and manage their environmental impacts. Unisource also hosts a "green" Web site at www.unisourcegreen.com.

More Companies Implementing Sustainability in Their Supply Chains and Operations

Saddle Creek Corporation (saddlecrk.com)
Spinnaker (spinnakermgmt.com)
The Timberland Company (timberland.com)

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