Greening the Supply Chain (Corporate Best Practices)

Engr. Chris Borci, RME
HS&E Manager, Distribution
Division
Zuellig Pharma Corporation
31 May 2012
St. Lukes Medical Center,
Global City, Fort Bonifacio, Taguig
Metro Manila Philippines
Vangie C. Diche
Head, IMS Dept.
FAST Logistics
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An association of companies committed to improve
their supply chain management processes and
professionalize their supply chain practitioners
Established in 1989 as DMAP
With over 100 corporate members at present
Most members are cargo owners, both
manufacturers and distributors, and some are
service providers
Virtually all are users of transport and warehousing
services
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To continually work for a well-informed
and educated supply chain industry
(communicate)
To professionalize supply chain
practitioners (educate)
To partner with government in creating
sound policies, rules and legislation that
benefit the industry (Advocate)
ADVOCATE. COMMUNICATE. EDUCATE
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January 10-20, 2012 , Kenshu, Tokyo, Japan
Green Logistics Training Program in the ASEAN Region
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Realization of Corporate Social Responsibility
Economic
Growth
Corporate
Governance
CSR
Environmental
Management
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Economic Growth
◦ Surging prices of Fuel and Iron
◦ Sustainable Society –
 Mass Production
 Mass Consumption
 Mass Disposal
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Environmental Management
◦ Environmental Problems
◦ Depletion of Resources
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1.
2.
3.
4.
5.
6.
Impact on Agriculture
Impact on Health
Extinction of Coral Reef
Impact on the Eco System
Impact on the Industry
Impact on the Climate
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Corporate Governance
◦ Risk Management
◦ Compliance and Competency Development
23 February 2012
10
CSR
Concept
Productivity
Economic
Growth
Environmental
Management
Corporate
Governance
Practices
Green
Logistics
Green
Distribution
Green
Purchasing
Supply Chain in a Day Conference 2012
23 February 2012
11
Productivity: Sales and Growth
 Development of Strategies
◦ Ex. MBO or Management by Objectives (Formation of
small group activities to develop concrete targets).
Usually comprised of 3-4 members who develops cost
effective projects (ex. Improve Production efficiency,
reduction of waste , Standardization)
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Logistics Improvements
◦ Reduction of Inventories in the Supply Chain
◦ Integration of inventory-related functions (ex. JPRPallet pooling system)
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Reduction of CO2 Emission
◦ Packaging Studies/Reduction
◦ Modal Shifts/Transport consolidation (Joint Transport )/
Routes studies/Use of Hybrid trucks that are fuel
efficient
◦ Energy Savings
◦ Pallet pooling systems
◦ Review of Ordering System (Planned Deliveries,
Reduction of frequency of delivery by Improving load
ratio)
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Energy savings of
approximately 15% (4.3
million kWh annually)
compared with a
conventional building
Water conservation
savings of approximately
71% (29 million liters
annually); recycling of
grey water, collection of
rain water and
condensate water
Landscaped
surroundings
Sky Garden; green
terraces in the retail
pavilion
GREEN BUILDING
Daylight for 90% of
interior spaces
Power-saving lights
Carbon dioxide
monitoring
Employee productivity
and wellness
GREEN BUILDING OF ZUELLIG IN
MAKATI
Bottle Weight
Reduction
(surface coatings are applied
for protection)
Reduced
dimensions of
boxes/packaging
tapes/void fillers
20% reduction in
weight of PET
bottles after
passing quality tests
More
compact/smaller
outer packaging
(carton boxes)
ZUELLIG
PHARMA
PACKAGING RATIONALIZATION
SOLAR ABSORPTION AIRCONDITIONERS
SIDE LIGHTS: NATURAL DAY
LIGHT
UTILIZING RENEWABLE ENERGY :
SOLAR POWER
SOLA TUBE DAYLIGHT SYSTEM
Switched to energy-efficient lights
in the DCs, e.g. LED lighting system:
E-LAMPS/L.E.D. LIGHTS USED IN BIG
WAREHOUSES
40% reduction in energy consumption and CO2 emission
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Use of Hybrid trucks that are fuel efficient
Back hauling/load
Co loading as allowed
Dedicated Return Trips (DRT)
Clustering of customers
Optimizing truckload/capacity and
utilization
 RORO
JOINT TRANSPORT & MODAL SHIFT:
◦ Truck to Train (CO2 redxn:1/8)
◦ Truck to Ship (CO2 redxn:1/4)
◦ 33.28% cost reduction
PROMOTING FUEL EFFICIENCY
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Pallet pooling system
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Plastic pallet is preferred over the
wooden type in lieu of Life Cycle
Assessment and food safety
1. Risk Management (Crisis Management)
(1)Risk Analysis
(2)Risk Evaluation
(3)Risk Plans/Countermeasures
(4)Training
2. Traceability System
-Establishment of Logistics Function
*Ex. Food Safety/Complaints
3. Human Capability Development (Compliance)
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2002: Around 18 large
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2006: included
information/communication
device manufacturers
unified to include heavy
metals and halogen
compounds such as
Cadmium, Lead, Mercury &
Chromium (hexa), which are
contained in materials or
parts, as common items to
be disclosed,
information disclosure
system on Bromine-based
flame retardants and EU’s
RoHS Directive-prohibiting
the 6 heavy metals on
home electrical appliances
and communication device
NO.
NAME
ENACTED
PD 1151
Philippine Environmental
Code
1970’s
PD 1152
Philippine Environmental
Policy
1970’s
PD 984
Philippine Pollution Control
Law
1976
RA 6969
The Toxic Substances &
Hazardous & Nuclear Wastes
Act
1990
RA 9003
The Ecological Solid Wastes
Management Act
2000
RA 8749
The Philippine Clean Air Act
2001
RA 9275
The Philippine Clean Water
Act
2005
COMPLIANCE TO ENVIRONMENTAL LAWS & REGULATIONS
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3Rs
◦ Reduce
 Reducing the amount of waste by increasing the efficiency
of resource use and extending the useful life of products.
◦ Reuse
 Using the "recyclable resources" from used items again, as
products or parts, after giving them proper treatment.
("Recyclable resources" are the useful parts or components
of waste, used products and byproducts.)
◦ Recycle
 Using the "recyclable resources" as the raw materials to
make new products.
Supply Chain in a Day Conference 2012
23 February 2012
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Compacted PET
bottles
Compacted
cartons
Aluminum
pellets
JAPAN BEVERAGE – the
largest
container/packaging
(from vendo machines)
recycling facility in
Japan
MATERIAL RECOVERY FACILITY
(MRF)
and RECYCLING FACILITY
RECYCLING USED LEAD-ACID BATTERIES
(ULABs) AND USED TIRES
RECYCLING FLOW OF USED
BATTERY FROM
TRUCKS/FORLIFTS
BALIK BATERYA PROGRAM
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AGF – Ajinomoto General Foods
Corporation promotes 3Rs:
Reduce/Recycle/Re-use
99.9% Recycling rate
Waste segregation
Recycling of
 Papers
 Slip sheets
 Plastics
 Tin cans and other metal
scraps
 Cartons
 Used packaging materials
 Discarded wooden pallets
IMPROVISED RAIN WATER
COLLECTION SYSTEM IN A DC
AGF – Ajinomoto General Foods
Corporation promotes water
conservation/recycling/re-use
WATERLESS URINAL S IN
WAREHOUSES
IMPROVISED RAIN WATER
COLLECTION SYSTEM
AGF – Ajinomoto General Foods
Corporation treats its domestic
and industrial wastewater prior
to recycling/discharge
POLLUTION CONTROL FACILITY
SEWAGE TREATMENT PLANT IN A
DISTRIBUTION CENTER
Supply Chain in a Day Conference 2012
23 February 2012
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31 May 2012
St. Lukes Medical Center,
Global City, Fort Bonifacio, Taguig
Metro Manila Philippines