Carbon Update Why it is the right time to address Energy Efficiency - PowerPoint PPT Presentation

Carbon Update Why it is the right time to address Energy Efficiency + Carbon Management Prof. Dr. Markus Mau Head of Business Management Department, University of West Hungary MAU International Consulting NYME Lehrstuhl Supply Chain Management Hungary Prof. Dr. Markus Mau

2 Introduction Prof. Prof. Dr. habil. Markus Mau ISO committee member. Representative for Germany for Environmental Standards, reviewer and project member of ISO 14040 series, 14060 series etc. Global Supply Chain Expert and long-term consultant to diverse retail companies and the grocery goods industry. Winner of process optimization award of German, Austrian, Swiss industry (ECR Award). Compendium of our additional professional Expertise: Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

3 Agenda The importance of EE and Carbon Management 1 2 Right time to address EE and Carbon Management USP that BSI delivers for "Sustainability “ 3 4 Best practise in Sustainable Management 2013/14 Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

4 Sustainability becomes part of business strategy Development of sustainable management Fair-Trade human working conditions adequate wages animal welfare Organic Groceries soil contamination ban of hazardous substances emission avoidance avoidance of residual waste Energy recycling Efficiency adoption of renewable energies minimize consumption of resources Corporate emission-balancing Internalization Social ethically correct External effects Responsibility financial products carbon footprint Lehrstuhl t Supply Chain Management Prof. Dr. Markus Mau

5 Reasons for an integrated Emissions-Management What happens if companies just wait: Top Carbon-Emittents In Bay Area, California, poluters are charged 4,4 US¢ per ton of CO 2 emissions! According to plans if the EU an amount of 30 € per ton of CO 2 emissions is reasonable. Environmental costs will become critical Lehrstuhl 5 5 Supply Chain Management Prof. Dr. Markus Mau

6 Managements of Value Chains STRATEGIC ENVIRONMENTAL MANAGEMENT: Integrated Management of all Layers Organizational readiness Capacity Demand Creation Process Planning Vendor Managed Inventory Market Distribution M M Aggregate Development Demand Requirement Forecasting Promotional Procurement R P SupplierDemand Inventory Planning P Planning Management Identification Planning S Planning Process Category Management Value chain Continuous Replenishment Order Raw Material Receive Shop Floor Finished Goods Inventory Build Confirmation Order Transmission Demand Id. Inventory Inventory Inventory Deployment Materials Mgt. Control Process Control Trans. Planning Allocation CREDIT VAL CARD 1234 1234 GO Order PAUL PAUL XX/ XX/ XX/ 5678 5678 XX/ FISCHE FISCHE XX/ XX/ XX/ ID 9012 OD XX/ XX FRO XX THR XX XX 9012 design/knowledge Load Building Management M R U R Pick/Pack Process Ship Collect Deductions Invoice Forecasting Customers/ Marketing Enterprise-wide Backbone Stakeholder Management Information technology System Shop Floor Control System Warehouse Mgt. System Important: Physical requirement to Network cover all 4 layers for long-term effects, developing responsibilities and successful follow up All layers need to be included in projects Lehrstuhl that cover environmental factors Supply Chain Management Prof. Dr. Markus Mau

7 Agenda The importance of EE and Carbon Management 1 2 Right time to address EE and Carbon Management USP that BSI delivers for "Sustainability “ 3 4 Best practise in Sustainable Management 2013/14 Companies are right at the stage Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

8 Business evolution towards Supply Chain Management Competition level Sustainability in SC Supply Chain Increasing competitiveness Management importance of SCM Marketing Continuously high/ increasing competitiveness importance of Marketing Sourcing and Increasingly reduced Manufacturing competitiveness importance of Sources and Manufacturing t SC vs . SC Company vs . company competition Buyers market Sellers market Process perspective process perpective throughout own enterprise along value chains Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

9 How does the Organization support “ Sustainability ” ? Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

10 Fractured Responsibilities …. Procurement Production Distribution … … … … … … … … … … … … … Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

11 Agenda The importance of EE and Carbon Management 1 2 Right time to address EE and Carbon Management USP that BSI can deliver for "Sustainability “ 3 4 Best practise in Sustainable Management 2013/14 Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

12 The role of BSI in the changing business world Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

13 How do you imagine the manufacturing network.... Target: Product is available in North America Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

14 Network design example cuper- Etching of Final assembly battery USA Steel production coil and packaging Sweden blank Japan China China from Japan from Malaysia blank- components Malaysia Production of Soldering of packing components material blank- Philippines USA Cutting of steel, charging components plastic parts components Taiwan Austria France Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

15 Impact: Examples is implementing BASF new commissioning Toll will just be taken saving with boxes for F&V over, if trucks follow Euro two-level trucks 5 requirements costs 52.000 Deliveries full toll charge Waste material 12.000.000 Meiles DHL Meyer Logistik smart trucks 30 % New B757-SF Telematics => Natural gas trucks: 20 % less cerosin Less fuel and CO2- Low emissions, 77 % less noise emissions Less noise pollution (compared to B727) Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

16 New solutions are required…. European flow of goods can benefit from intra-European shipping Industrial regions in Europe Potential? Hamburg by SSS by land climate-neutral train 1.000 t full-train Bilbao Regenerative 22 t CO 2 -reduction energy usage compared to regular train 82 t CO 2 -reduction Lehrstuhl Supply Chain Management compared to truckload Prof. Dr. Markus Mau

17 Paradigm shift in management supports sustainability Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

18 Strategy towards sustainability Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

19 Agenda The importance of EE and Carbon Management 1 2 Right time to address EE and Carbon Management USP that BSI can deliver for "Sustainability “ 3 4 Best practise examples in Sustainable Management Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

20 CO2 is internationally still dominant Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

21 Henkell II value footprint vs. Lehrstuhl Supply Chain Management Prof. Dr. Markus Mau

22 Henkell III: Achieve more with less Create more value Achieving more: performance Achieving more: Social progress Achieving more: safety+health With less: Water and wastewater With less: Energy and With less: climate Material and waste Lehrstuhl Reduce footprint Supply Chain Management Prof. Dr. Markus Mau