Sustainable Business News from
Kuhn Associates Management Advisors
Building Sustainable Businesses
 
 
Volume 2008, Number 4                                                                                                                                      November 2008
In This Issue
Featured Article
Ideas You Can Use Now
Calendar of Events
More About Us
Our firn's mission is to help companies througout the product supply chain create environmentally-sustainable businesses. Our consulting services include: creating corporate-level environmental sustainability visions and goals; re-engineering internal processes to reflect environmentally-sustainable best practices; and  maximizing the environmental sustainability of product supply chains.
 
Our team of professionals is ready to help your business. Please contact us to learn how we can help you.
 
Call 212-343-1006 today.
 
Alternative Energy Source
Biofuel from corn
Biofuels. Corn, palm, switchgrass, grains ... all of these are possible sources for the wide variety of so-called  biofuels being tested today. These non-fossil fuel energy sources are still largely in development stage and it is unclear how they will contribute to our energy needs. The good news is that they are almost carbon neutral when burned to create energy. The bad news is that production of the raw materials needed to make the fuel is land-intensive and may be disruptive to world food supplies. For more information, visit
Greetings!

Welcome to our firm's November Newsletter. In this issue, like our others, we provide you with timely, useful information about the relationship between business and environmental sustainability ... perhaps the hottest topic in business today. Each issue of our Newsletter includes a discussion of a particular environmental topic, a related "best practices" idea you can use and a calendar of select upcoming events. Happy reading!
 
FYI. We're producing a white paper on the role of integrated 3PLs in building a sustainable supply chain. Click "Join Our Mailing List" on this page to receive your complimentary copy of this white paper immediately when it's published.
Feature Article: Reducing Solid Waste in the Supply Chain
 
 
Waste is a natural result from almost any process. Waste in the product supply chain comes in many forms, literally (i.e., solid, liquid and gas). There is serious concern around the world particularly about the amount of solid waste that our activities create and about what is ultimately done with that waste. Much of the developed world now recycles at least some of its solid waste, but even with those efforts the overall amount of solid waste going to landfills (or elsewhere) continues to grow.
 
Supply chain companies need to do three things to help solve this serious problem. First, companies need to reduce overall waste and simultaneously to find unique ways to "decouple" their saleable output and their waste output. That is, we need to reduce the amount of solid waste irrespective of output and we need to be able to achieve unit sales growth without a resulting increase in waste output. The "easiest" way to do this is to avoid creating the waste in the first place.  It's critically important to take this first step that is intended to eliminate the waste problem, as the other options are remediating a problem that's already been created.

So how can a company integral to the product supply chain mitigate its waste creation? Evaluate your product, its process of manufacture and its packaging through the waste "lens." Learn about and apply design-for-environment principles (which include rigorous analysis of material composition and mass). Manufacturers should analyze their manufacturing processes for the waste that those processes create (excess raw materials, by-products, etc.) and determine what process reengineering might do to eliminate waste. Manufacturers, logistics providers and warehouse operators all need to assess packaging and collateral to separate what is of value to the customer from what is not. If it's not of value to the customer, do what you can to eliminate it.

So if we still produce waste after seriously trying to eliminate it, what should we do? The second-best option is to abide by the second of 3 Rs of waste: reuse. Is there a way that your company can reuse/repurpose the waste? If not, is there another company or organization that can reuse/repurpose the waste? Try to think of waste as "Other Peoples' Resources." This approach to the waste issue mimics how nature treats waste (e.g., fallen trees rot over time and produce fertilizer for new growth) and is nature's well-tested method for dealing with waste. In the supply chain context, this approach may require some pretty innovative thinking, the right financial circumstances and, sometimes, the assistance of new technology. (For an example, see the "Idea" below).
 
Finally, if neither reduction or reuse is feasible, then supply chain companies should recycle their solid waste. Paper, glass, metals are all candidates for recycling in most areas. Most jurisdictions require strict materials separation for proper recycling, so it's important that you know what it is that you're sending off to the recycler. This often requires close collaboration with suppliers to establish a means to identify materials. Taking this one step further, note that there are many jurisdictions that now legally require manufacturers to ensure that their products can be properly recycled at the end of their life cycle (to date, mainly affecting the electronics and telecommunications industries). In the future, these so-called producer responsibility laws will apply in more jurisdictions and in more product categories.
 
In conclusion, supply chain companies have a real opportunity to address the costs and negative environmental impact associated with solid waste. An initial investment of time, capital and creativity will pay significant dividends to those supply chain companies who think lean and go green.
 
 
Ideas You Can Use Now!
 
In the article above, we talked about dealing with the issue of supply chain solid waste by thinking of this material as potential resources for others.
 
One innovative way to facilitate the transformation of something in the supply chain from waste to resource is known as by-product synergy: matching the waste that comes from a producer with a user who can use that material as an input. Mayor Richard Daley established such a program in Chicago in 2006 and today the "Chicago Waste to Profit Network" (www.wastetoprofit.com) has matched hundreds of waste producers with waste users. By doing so, the 90-member network in 2007 diverted over 20,000 tons of solid waste from landfills. And all of this material is now in productive re-use. Most of the transactions (all of which are confidential) occur within the Chicago region (to minimize the negative effects of long-haul transportation) and some of the transactions have even ended up with the development of completely new products.
 
Is there such a program in your area? Search the web, ask a colleague or contact us. If there is not one, then why not consider helping start one? Check with local authorities regarding legal issues and whether there are any government incentives associates with such a program.
Calendar of Events
 
Here are some sustainability-related events for the coming months that may be of interest to you:
 
Orlando, FL, November 12 - 14 ... Treatment Approaches for Water Reuse 2008 explores the latest technologies and concepts for water reuse and reclamation, as well as for compliant disposal of industrial wastewater. Visit www.waterreuse-conference.com.
 
Puerta Vallarta, MX, December 2 - 3 ... The Commission for Environmental Cooperation presents its North American Workshop on Environmental Sustainability and Competitiveness, a program of its Joint Public Advisory Committee. Visit www.cec.org.
 
Destin, FL, March 1 - 4, 2009 ... The Southeast Recycling Conference and Trade Show provides the premier forum for informing the public and private sectors of the economic and environmental significance of recycling and waste reduction in the Southeast. Visit www.southeastrecycling.com.
 

 
Thanks for reading! Please contact us today to discuss anything you've read here, suggest a topic for a future edition or learn how we can help you build a sustainable business! Call 212-343-1006 or email us today at info@kuhnassociatesllc.com for more information.
 
Sincerely,
 

Robert Kuhn, President
Kuhn Associates Management Advisors LLC
Copyright 2008   Kuhn Associates Management Advisors LLC
Reproduction without prior permission prohibited.