From the suppliers to thesupply chain:

How to design a GreenSupply ChainManagement Model?

Jose María Fernández AlcaláDerio, 15th November 2013

1. To present the conceptual model for theintegral management of environmentalaspects in the supply chain.

2. To show the commitment of the BasqueEcodesign Center and its partnercompanies to environmental traction in their supply chains.

3. To show practical cases of partnercompanies of the Basque EcodesignCenter.

4. To present the specific lines of actionand support for 2014 in the supplychain.

Aims:

Key Concepts:

§ The concept of Extended Producer Responsibility

§ The concept of productLife-Cycle

PHYSICALresponsibility

LEGALresponsibility

ECONOMICresponsibility

RESPONSIBILITY

OF INFORMING

PROPERTY PHYSICALresponsibility

LEGALresponsibility

ECONOMICresponsibility

RESPONSIBILITY

OF INFORMING

PROPERTY

Agents involved:

Supplierengagement

PRODUCER

SUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

Agents involved:

Supplierengagement

Traction of thesupply chain

PRODUCER

CONSUMER

SUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

DISTRIBU-TORS

RETAILERS

END-OF-LIFE MANAGERS

Agents involved:

Supplierengagement

Traction of thesupply chain

PRODUCER

CONSUMER

SUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

DISTRIBU-TORS

RETAILERS

END-OF-LIFE MANAGERS

Flow ofmaterials

and service

Economic andcash flow

Agents involved:

Supplierengagement

Supply chainmanagement

PRODUCER

CONSUMER

SUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

DISTRIBU-TORS

RETAILERS

END-OF-LIFE MANAGERS

Flow ofmaterials

and service

Economic andcash flow

Flow ofInformation

and collaboration

Source.- State of GreenBusiness 2013 – GreenBiz Group Inc

60% of theenvironmental impactduring theproduct's lifecycle is in thehands of thesupply chain

Agents involved:

0

20%

40%

60%

80%

100%

Food and drin

k

Financia

l serv

ices

Bankin

g secto

r

Teleco

mmunicatio

ns

Real e

state

secto

r

Technology

Commercial

secto

r

Insuran

ce

Domestic

consu

mption an

d home applia

nces

Automotive

Industrial

goods and se

rvice

s

Leisure

and fr

ee tim

e

Health

Materia

ls an

d Constr

uction

Chemica

l sec

tor

Gas an

d oil

Energy s

ervice

s

Raw m

ateria

ls

Impacts of the supply chain

Direct impacts

Agents involved:

The complexityof the supplychain...

Company A

Company B Company C

Company ECompany D

competitorco

mpetito

r

com

petit

or

competitor

competitor

supplier

customer

supp

lier

cust

omer

suppliercustomer

supplier

customercustomer

supplier

cust

omer

supp

lier

custo

mer

supp

lier

suppliercustom

er

suppliercustomer customer

supplier

Company A

Company B Company C

Company ECompany D

competitorco

mpetito

r

com

petit

or

competitor

competitor

supplier

customer

supp

lier

cust

omer

suppliercustomer

supplier

customercustomer

supplier

cust

omer

supp

lier

custo

mer

supp

lier

suppliercustom

er

suppliercustomer customer

supplier

Supply Chain Model:

Three fields of action

Environmental Management of the activity

Aspects in products/services

(business)Hiring of

corporateServices

Green SupplyChain

Management Model

Extended ProducerResponsibility

LifeCycle

AgentsinvolvedAgents

involvedLevel of

commitmentLevel of

commitment

Environmental traction

strategy in the supply chain

Environmental Management of the activity

Aspects in products/services

(business)Hiring of

corporateServices

Supply Chain Model:

AgentsinvolvedAgents

involvedPRODUCER

CONSUMERSUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

DISTRIBUTORS RETAILERS END-OF-LIFE MANAGERS

þ

þ

þ

þ

þ

þ þ þ þ

þ

þ

Environmental Management of the activity

Aspects in products/services

(business)

Hiring ofcorporateServices

Supply Chain Model:

Fromconsultationand demands

Level ofcommitment

Level ofcommitment

LOW

- Surveys- Focus groups- Meetings with agents- Public fora- Support committees

CONSULTATION:

Level ofCOMMITMENT: :

TRACTION methods:

- Material blacklists- Requirements for suppliers depending on levels

REQUIREMENT:

Supply Chain Model:

Fromconsultationand demands

To collaboration andstrengthening of

relationships

LOW

- Surveys- Focus groups- Meetings with agents- Public fora- Support committees

CONSULTATION:

Level ofCOMMITMENT: :

TRACTION methods:

- Material blacklists- Requirements for suppliers depending on levels

REQUIREMENT:

- Bilateral agreements regarding goals to be achieved /price...

NEGOTIATION:

- Access to corporate design tools- Online feedback systems- Design meetings

INVOLVEMENT:

- Joint projects- Joint ventures- Work with shared design tools

COLLABORATION:

- Integration of external agents in the definition of new products/services and even in the business strategy

STRENGTHENING:

MED

IUM

HIG

H

Level ofcommitment

Level ofcommitment

Supply Chain Model:

Level ofcommitment

Level ofcommitment

LOW

CONSULTATION:

REQUIREMENT:

NEGOTIATION:

INVOLVEMENT:

COLLABORATION:

STRENGTHENING:

MED

IUM

HIG

H

þþþ

þþþ

þþþþþþ

Environmental Management of the activity

Aspects in products/services

(business)

Hiring ofcorporateServices

Supply Chain Model:

Level ofcommitment

Level ofcommitment

LOW

CONSULTATION:

REQUIREMENT:

NEGOTIATION:

INVOLVEMENT:

COLLABORATION:

STRENGTHENING:

MED

IUM

HIG

H

þþþþþþ

þþþþþþ

þþþþþþ

þ

þþþþ

þ

þþþþ

þ

þþþþ

*

****

*.- Only for B2B cases

PRODUCER

CONSUMERSUPPLIERS

RAW MATERIAL

MANUFACTU-RERS

DISTRIBUTORS RETAILERS END-OF-LIFE MANAGERS

Supply Chain Model:

Environmental traction

strategy in the supply chain