Posts tagged value

Moving Towards a Circular Economy

When you think about accelerating impacts and long-term solutions to current supply chain challenges that impact the 3P’s (people, planet and profit), we need to adopt and develop sustainable frameworks with a holistic life-cycle perspective. There is a ton of innovation happening in the CPG space (Levi’s, Unilever, PepsiCo, etc.)

Shifting from the current ‘take-make-waste’ linear model to the circular economy is critical for businesses to continue to thrive and meet society’s needs. Waste volumes are projected to increase from 1.3 to 2.2 billion tons by 2025, and with nearly 9 billion consumers on the planet including 3 billion new middle class consumers by 2030. The challenges of addressing waste and meeting increasing demand are unprecedented. Therefore it is imperative businesses continue to re-evaluate raw materials, design, manufacturing, consumption, and end of life to keep materials and products continuously flowing through closed loop systems.

How is your company innovating in product life cycle management from design and inception to sustainable product packaging? How are you personally adopting a sustainable mindset in your home, the daily choices you make as a consumer to move toward a circular economy? The bigger question is how are YOU INFLUENCING this change?

Guiding Your Team Through Sustainability

I’m sharing insights from Jennifer Woofter, chief-consultant at Strategic Sustainability Consulting. Interesting perspective in addressing the management of change which can often be much larger than the green-change initiative.

Source: Guiding Your Team Through Change, Sustainably — Strategic Sustainability Consulting

Change can be difficult. Whether it’s a shift at work or in your personal life, embracing change can be a challenging issue for many people. For companies moving toward greening the workplace, it’s key that they remember that even small changes can result in small stressors to employees. It’s important to recognize the added stress and think from employees’ perspectives during the transition. Organizations that are working to be more adaptive and innovative may find that the resulting culture change becomes a huge roadblock to their efforts as employees resist or respond to the stress.

Innovation and change require leaders and employees alike to embrace new behaviors, which may initially seem antithetical to existing corporate culture. When making such dramatic shifts, it’s vital that leadership understands it’s impossible to dictate optimism, trust, conviction or creativity and consider the needs of everyone in the company.

With that in mind, the entire team should work together to establish a joint purpose and utilize internal efforts to make sure everyone on the team is onboard before changes begin.

One of the best ways to motivate employees, particularly during a transition is praise. Praising people not only motivates them, it also encourages and inspires them to do even better.

If you are helping to lead a cultural movement toward a greener workplace, consider these tips:

1. Frame the issue in a way that will excite your employees and motivate them to action. In order to engage your team’s commitment you have to inspire a desire and responsibility to change. A good organizational purpose calls for the pursuit of greatness in service of others and asks employees to be driven by more than simply personal gain.

2. Demonstrate quick wins that can show how actions toward change are working. Instead of simply declaring the culture shifts you want to see, highlight examples of the actions you expect to see more of in the company.

3. Create safe havens. If you intend for individual to act differently, you might find that changing their surroundings in order to support new behaviors to be incredibly helpful. Outposts and labs are often built as a way to give people a safe space to embrace new beliefs.

4. Embrace symbols that will help create a feeling of solidarity and demarcate who your employees are and what they stand for to the outside world. Symbols can help define the boundary between “us” and “them” for movements and can be as simple as a T-shirt, bumper sticker, or button supporting a general cause, or more elaborate like a new corporate brand identity. Internally and externally, such an act can reinforce a message of unity and commitment — that an entire company stands together in pursuit of a singular purpose.

It’s important to remember that even with the best guidelines, and the best intentions, change isn’t easy. While harmony tends to be most people’s preferred environment at work, a moderate amount of friction should be considered positive during a transition. Creating a culture shift with a complete absence of friction probably means that very little has actually changed. So explore the places where change faces resistance in your office. These areas may indicate where the dominant organizational design and culture need to evolve.

And culture change can only happen when people take action. While articulating a mission and changing company structures are important, keep on tackling the tough issues after you’ve shown people the change you want to see.

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Upgrade your Supply Chain or become less relevant, the choice is yours

 

Source: Upgrade your Supply Chain or become less relevant, the choice is yours | Alex Rotenberg

Unlike others, with limited expectations about the impact of technology, who dream of going back to the glorious days of ERP or MRP systems, and order-based solutions, my core belief and experience, is that operational excellence comes from the introduction of new technologies, and applying them now to get on the learning curve before anyone else, and not in a distant future. We can become more agile, compress order-to-cash lead-times, and re-invent how to deliver products and services. Thus creating very new sources of competitive advantage for our customers.

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Like the German industry is proving  most recently with Industry 4.0, I firmly believe that digitization, robotics, and the Internet of Things, will help us leverage the continuous data-stream from the internet, and transform the manufacturing base with new and more flexible technologies, aiming at making production planning more responsive to forecasted market changes and customer preferences.

The opportunities are unlimited. And it is the task of supply chain consultants to help companies upgrade their supply chains, introducing these new technologies, and fundamentally redefine how our supply chain and businesses operate, not with the narrow mindset of cost control, inventory reduction and efficiency gains, but rather with the ambitious goal of redefining the value equation in each industry, with a continuous eye on tangible outcomes for the customers.

The value provided to companies, is radical redesign of the processes of your company, putting the customer at the centre, and providing them a totally new level of experiences and satisfaction, contributing to better margins and increased revenue.

It will make your business:

  • Cheaper
  • Faster
  • More Value add

The enablers are methodologies supported by data, to redesign physical supply chain networks, and digitize the underlying processes. In today’s world, what happens in the information world, is more important than the physical product flow. Wise use of technologies can overcome any dysfunctional supply chain and help a company operate at its maximum capabilities.

The supply chain innovation is introduced by making the supply chain more customer-driven, and the business more customer-centric. These are not empty words but efforts to redesign processes providing a maximum of value to each customer, and redefining the meaning of operational excellence. Segmentation, predictive analytics and value chain orchestration are at the core of this revolution.

The operational excellence results from strategic alignment and process integration, across silos and aligning objectives and business priorities, based on customer-driven insights, across the extended supply chain, breaking walls inside and across organizations, divisions and companies, give a direct operational benefit and a step change in supply chain performance.

Powered by this vision of transforming the actors of the supply chain, into a collaborative value network, where any node can add value to the overall community, and being rewarded accordingly, supported by Industry 4.0 technologies, we can provide customers with that so much desired instant gratification, the internet and companies like Amazon have started to make a standard expectation of the new customer.

The bonus is that this customer-driven revolution also significantly improves the companies top-and bottomline performance.

That is why it is important you join this Customer-led SC revolution.  Upgrade your supply chain or become less relevant, the choice is yours.