Essay
Sustainability Along the Global Supply Chain Spring Term 2011
Herman Miller Case Analysis
Name: Victoria Kondratova, Ekaterina Tarkhova Address: Bischof-Dirichs-Str. 56, 65375 Oestrich-Winkel Submitted to: Prof. Dr. Julia Wolf Submission Date: April 1st, 2011
Table of Contents:
Table of Contents List of Abbreviations 1. Introduction 2. Herman Miller’s Environmental Protection Strategy and its Necessity 3. Cradle-to-cradle Design Protocol 4. TPU verses PVC Approach 5. Implementation of C2C Protocol in Herman Miller 6. Advantages and Disadvantages of C2C Protocol 7. Conclusion Reference List 1 1 2 3 4 5 5 6
Sustainability Along the Global Supply Chain ii
List of Abbreviations
C2C C2G DfE EQAT MBDC PVC
TPU
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Sooner or later all companies will be pushed to make their products and processes more sustainable. By realizing such trends today, Herman Miller makes its investments right now in order to secure high pay offs in future.
3. Cradle-to-Cradle Design Protocol
C2C protocol became an alternative to the previously accepted C2G approach. C2G was based on monitoring every aspect of a product through its entire life cycle; from design to disposal (Business Dictionary, 2011). C2C, in its tern, is a holistic economic, industrial and social framework that seeks to create systems that are not just efficient but essentially waste free (Lovins, L. Hunter, 2008). C2C is based on two premises: − Eco-effectiveness vs. eco-efficiency Eco-efficiency is achieved through delivery of competitively priced goods that satisfy human needs while reducing environmental impacts and resource intensity throughout the entire life-cycle. However, being an eco-efficient company is not enough now. Therefore, the central design principle of eco-effectiveness is waste equals food. − Waste equals food
Sustainability Along the Global Supply Chain 3
At the end of a product life cycle, product can be reused; therefore creating a virtually closed loop. There are four aspects helping to implement C2C approach into life: 1. Biological and technical nutrients (these two types of nutrients should be separated during the production process; otherwise it will be impossible
Their objective to consider environmental issues are met by introducing their positive waste programme which helps to facilitate the donation of tonnes of surplus food to Fare Share from their suppliers, a reduction of own brand packaging and a reduction of operational carbon emissions and water. They have also improved their farm reporting and benchmarking to support the identification of key areas for greenhouse gas savings. By Sainsbury’s applying these practices, it has helped them to reduce their carbon footprint and in turn helped them to reduce their operational
Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of
Michael F. Doyle is currently serving his twelfth term in congress representing the 18th district of Pennsylvania from 1995-2003 then the 14th district from 2003-the present. He’s currently the most senior congressman from Pennsylvania. Doyle is from Swissvale, Pennsylvania and born to Irish and Italian parents. He’s married to Susan Doyle and has four kids. Doyle attended to Swissvale Area High School in 1971 and enrolled at Pennsylvania State University and got a Bachelor of Science degree in Community Development in 1975. Prior to serving in Congress Doyle worked as a small business owner. His first job in politics was in 1979 when he started working as Chief of Staff for Pennsylvania State Senator Frank Pecora ("Biography Mike Doyle,"
The organization further strengthens its daily sustainable products procurement policy while improving its offer ecological service by adopting solutions in waste disposal and optimizing energy consumption: in just one year, Staples recycled over 63 million ink cartridges (only in the US). Moreover, the company has worked hard to develop over 8000 products with positive environmental characteristics. Staples understands that a successful business is not just about its turnover and profits. It must therefore ensure that all of its employees, suppliers and partners comply with ethical and environmental
Jane “Bitzi” Johnson Miller was born and raised in west Texas on a ranch. She was married to Michael Smith, former Texas supremum court justice, until they divorced in 2010, have two grown children. She went to the all-girls, private National Cathedral School in Austin, where she played on the woman soccer team and graduated in 1981. She attended the University of Texas at Arlington, majoring business administration with minor in political science, and was a member of Phi Beta Kappa honor society. She also studied for four months in Spain during 1983. She graduated from University of Texas at Arlington in 1985. She received her PhD from Harvard Business School in 1989, where she was executive editor of Harvard Journal of International Business and an editor of the Harvard business Journal. She holds her Master’s degree from Stanford Business School.
There are several obstacles for manufacturers attempting to employ changes in their processes for more sustainable practices. One problem that manufacturers will run into is the lack of direction. Knowing that change is needed is the easy part of reaching sustainability. Knowing what changes to make is a much more complicated challenge. The idea of sustainability is discussed often, yet broad scope ideas are traded without specific details and applications. Team B Consultants Inc. (TBCI), is the
This is an important process because it is based on the customer’s wants and needs. The products that are built here enhance the supply chain design and goes beyond just giving customers what they want. And according to Target, their guests want more sustainable products (“Corporate Responsibility”, 2014). For example, Target’s Sustainable Product Standard partners them with vendors who provide information on 6,500 products for which there is no widely accepted standard for sustainability. They evaluate this information against certain criteria based on information gathered from stakeholders. The process helps Target to provide a better selection of sustainable products for their guests (“Corporate Responsibility”, 2014).
Kohl’s Department Stores has expanded its commitment to supply chain sustainability in 2012 to include analysis of 50 private brand vendors, as well as the company’s top 325 national brand vendors, which represents approximately 90 percent of the company’s merchandise spend. The company also surveyed 38 non-merchandise business partners in the areas of transportation and consumables, according to its newly released 2012 corporate social responsibility report. Kohl’s leverages these scores in key areas of sustainability to foster consistent dialogue and education and to help vendors establish their own programs and commitments.
The purpose of this paper is to compare the sustainability practices of two companies in the same industry. The two companies chosen for comparison are The Hershey Company and Coca-Cola Enterprises, both of which are in the consumer staples industry. These two corporations are ranked sixth and eighth, respectively, on the Newsweek Top Green Companies in the U.S 2015. They have taken pride in creating sustainable product designs, having environmentally sustainable processes and supply chain management.
The infrastructure is not at present in place to permit efficient recycling of materials from old product to new. These materials include metal, polymers, refrigerant gas and glass. This situation is due largely to a culture of indifference from Governmental and regulatory agencies at present. The use of natural capital is unsustainable with the culture of supply of what the customer wants and not what they need, this is at present a cultural problem. This has a detrimental impact on the ecosystem.
Planet: Operations managers are always looking for ways to reduce companies environmental impact on the earth, and they achieve this through careful selection of raw materials, process innovations, alternative product delivery methods or disposal of end of life
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
(1) The supply chain managers should address the sustainability issues and should look at the entire supply
We are not told much information about rivalry within the case. Herman Millers top three
ITC Ltd has worked exremly hard to start several procedures that have led to compliance of the standards of social responsibility. ITC’s dealings within the tobacco industry have contributed to the increase in company revenues and the company has worked towards following the triple bottom line and giving back to society. Most, businesses pay little attention to their social responsibilities and make it part of their overall strategy, instead they concentrate more on financial benefits from the sales of products. Consequently, managing business in a socially responsive manner contributes to the best combination of business success and societal acceptance, trust and loyalty. Giving back to the community in ways that benefits only society such as planting trees to curb pollution and help the environment or using biodegradable materials in packaging can reap financial benefits to a company by building loyalty among the community. The notion of business ethics and corporate social responsibility is becoming a defining concept in all industries worldwide. ITC believes in the Triple Bottom Line philosophy where the performance and perception of a corporation should not be judged only on the basis of its financial statements or revenues, but its environmental and social performance as well. ITC is one of the only companies in the world to be carbon positive, water positive, and conduct solid waste recycling. ITC provides water to areas where water is very