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”
• SCC leveraged previous research to introduce “green”
into SCOR
– Processes
– Best Practices
– Metrics
• As a proven Supply Chain Management model, SCOR
is ideal as a Green Supply Chain tool.

2
 Green SCM integrates environmental
and supply chain management.

Green Supply Chain Management

Plan P1 Plan Supply Chain

P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns

Source Make Deliver

Suppliers

omers
S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products

D2 Deliver MTO Products

S2 Source MTO Products M2 Make-to-Order

Custo
S3 Source ETO Products M3 Engineer-to-Order D3 Deliver ETO Products

Return
Source
Return
Deliver Supply Chain
Environmental Enable Management
Management Green Supply Chain Management

Green SCM recognizes the

disproportionate environmental
impact of supply chain processes
in an organization.

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 Green SCM leverages the role of the
environment in SC value creation.

Environmental Value Drivers

Tangible Outcomes

Green Supply Profitability

Chain
Programs Asset
Utilization Supply Chain
Value
Service Level

Employee
Satisfaction
Customer
Stakeholder Environmental
Interests Sustainability Reputation

Continuity
y
Community
C it
Quality of Life Alliances

Technology
Intangible Value Drivers

Source: Forging New Links, GEMI, 2004

4
 The product life cycle is the basis of
green supply chain management.

Supply Chain in the Environmental Life Cycle

Designing the supply chain
concurrently
tl with
ith the
th product
d t
is a supply chain management
best practice.

Concept Design Raw Retail/

Material Transport Manufacture Transport Consumer Transport Disposal

Extraction Use

T i l Supply
Typical S l Chain
Ch i Scope
S

5
 Now, GSC programs are moving
from compliance to value creation.

Environmental, Safety, and Health Business Contributions

Assure Compliance Raise Productivity

Minimize Risk Enhance Relations
Maintain Health Support Innovation
Protect the Environment Enable Growth

Traditional Emerging
Cost Value
Avoidance Creation

Source: Forging New Links, GEMI, 2004

6
 GreenSCOR was created to add
environmental considerations to
SCOR.

• 2002—ADUSD L&MR (SCI) created GreenSCOR to

understand the relationship between environmental
and supply chain management.
• 2002-2007—Greater community saw value of the
approach
– GreenSCOR won the SCC 2003 Award for Academic Excellence
• 2008—GreenSCOR elements added into SCOR 9.0 as
integral part of model.

ADUSD L&MR (SCI)= Assistant Deputy Under Secretary of Defense, Logistics and
Materiel Readiness, Supply Chain Integration

7
 GreenSCOR is a modification of the
SCOR model that includes
environmental elements.
GreenSCOR Development

Plan P1 Plan Supply Chain

P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns

Source Make Deliver

Suppliers

Customers
S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products

D2 Deliver MTO Products

S2 Source MTO Products M2 Make-to-Order

S3 Source ETO Products M3 Engineer-to-Order D3 Deliver ETO Products

Return Return
Source Deliver

Environmental Enable

Management SCOR Model

GreenSCOR
GreenSCOR
Plan P1 Plan Supply Chain

modifies the
P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns

Source Make Deliver

maintains the
Suppliers

existing SCOR

Custtomers
S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products

D2 Deliver MTO Products

integrity
g yo of the
structure
t t to
t
S2 Source MTO Products M2 Make-to-Order
S

current SCOR
S3 Source ETO Products M3 Engineer-to-Order D3 Deliver ETO Products

include Return

model by adding
Return
Source Deliver

environmental Enable

to the existing
processes, GreenSCOR Model elements.
metrics,
t i and d best
b t
practices.
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 GreenSCOR focuses on the impacts
of SCM in each stage of the product
life cycle.

GreenSCOR Concept

Stage
Raw Retail/
Material Manufacture Consumer Disposal
Extraction Use

P P P P
Green-
SCOR
Mapping
S D S M D S D S D

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 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
• Metrics to measure the effects of greening
(examples)
– Carbon and Environmental Footprint (proposed)
– Energy Costs
– Units per Shipment
• Processes to capture waste management
– M1.7,
M1 7 M2.7,
M2 7 M3.8—Waste
M3 8 Waste Disposal

EMS=Environmental Management System

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Environmental Best Practices were added
throughout SCOR
Example Environmental Best Practices

• Supply Chain partners collaborate on environmental issues

Plan • Plans created to minimize energy use

• Select vendors with EMS system in place

Source • Establish environmental partnerships with suppliers

• Schedule peak production for of-peak energy demand times

Make • Minimize packaging material

• Route to minimize fuel consumption

Deliver • Retrieve packaging material for re-use

• Do not physically return product beyond economic repair

Return • Take back product for recycling

• Implement an EMS and track environmental performance

Enable • Maintain equipment for fuel/energy efficiency
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EMS=Environmental Management System
Environmental metrics were added throughout
SCOR
Example Environmental Metrics

• Compliance costs
Plan • Emissions cost per unit

• % of orders receives with correct packaging

Source • % of suppliers with current EMS system

• Energy costs as a per cent of production costs

Make • Waste produced as per cent of product produced

• Fuel costs as per cent of Deliver costs

Deliver • % of carriers meeting environmental criteria

• Products returned as percent of products delivered

Return • Return products disposed of vs
vs. remanufactured

• Facility energy costs as per cent of total costs

Enable • Down time due to non-compliance issues
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EMS=Environmental Management System
 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
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.

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 Environmental footprint
measurement is five metrics
repeated at all three SCOR levels.
Proposed Environmental Footprint Metrics

Metric Units Basis

Carbon Emissions Tons CO2 This is the unit of measure currently used for
Equivalent green house gas emissions and is a measure of
the climate impact from CO2 and other global
warming air emissions.
Air Pollutant
Ai P ll t t T
Tons or kg
k This would
Thi ld include
i l d emissions
i i off major
j air
i
Emissions pollutants (COx, NOx, SOx, Volatile Organics
(VOC) and Particulate). These are the major
emissions that EPA tracks.
Liquid Waste Tons or kg This includes liquid waste that is either disposed
Generated of or released to open water or sewer systems
(these emissions are generally listed on water
emissions permits).
Solid Waste Tons or kg The total solid waste generated by the process.
process
Generated
% Recycled waste Per cent The per cent of the solid and liquid waste that is
recycled.

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Environmental footprint metrics are summed across
SCOR levels, like the existing Cost metrics.
Proposed Environmental Footprint Hierarchy
Total Carbon Footprint
Level 1 Air+Liquid+Solid-% Recyc=Total Environmental Footprint

Tier 3 Tier 2 Tier 1 Your Company Customer

S1 M1 D1 S1 M1 D1

Level 2 D1 S1 M2 D2 S2

S1 M1 D1 S1 M1 D1 Carbon
Air
Liquid
Solid
% Recyc
R

M2.1 M2.2 M2.3 M2.4 M2.5 M2.6

Schedule
Release
productio Issue Produce Stage
Package Product
Level 3 n
Activities
Product and Test Product
to Deliver
D li

Carbon Carbon Carbon Carbon Carbon Carbon

Air Air Air Air Air Air
Liquid Liquid Liquid Liquid Liquid Liquid
Solid Solid Solid Solid Solid Solid
% Recyc % Recyc % Recyc % Recyc % Recyc % Recyc

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 A Waste Disposal process was added
to make to capture waste
management

M1: Make-to-Stock

M1.1 M1.2 M1.3 M1.4 M1.5 M1.6

Schedule Release
Issue Produce Stage
Production Package Product to
Product and Test Product
Activities 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.”

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 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
repeatable,

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Questions?

jfrancis@supply-chain.org