Green Suppliers Network

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Green Suppliers Network
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Why focus on Environment?

• Being green will no longer be an option, it
  will be a necessity for all participants in the
  supply chain ISM survey (1/07)
• Companies deselecting suppliers for failing to
  meeting sustainability criteria
• - 5 yrs ago 17
• - Today 60
• - Future 70
• Concerns about supply chains on-time delivery,
  quality, cost
• Supply chain inefficiencies can increase
  operating costs as much as 25 BSR, 2000

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Why focus on Environment?

• the results confirm that CEOshave discovered
  sustainability as a top line opportunity ISM
  (1/07)
• Improve Brand 54
• Differentiate products 50
• Efficiency 21
• Cost 17
• How will you stand out to your customers?

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Tech Assistance for Suppliers

• Suppliers need help to meet evolving needs
• 2005 survey by The Manufacturer
• 63 of respondents said they are receiving
  extreme or significant pressure from customers to
  reduce costs
• Yet, only 2 said their customers were providing
  assistance in the form of resources and technical
  assistance
• 46 said their customers demand improvements but
  do not provide direction on how to achieve
  improvements

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What is the Green Suppliers Network?

• A strong first step on the path to sustainability
• How
• Expands lean definition of waste to include
  environmental considerations the Lean and Clean
  Advantage
• Lean Clean on-site reviews
• Measurable business and environmental impacts
• Trains employees to learn to see environmental
  opportunities

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Cost Savings Identified
Results for 51 completed reviews
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Clean Opportunities Identified
Results for 51 completed reviews
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Results Snapshot

• 15 suppliers reported
• 3.8 Million in increased sales
• 1.2 Million in investment in plant and equipment
• 27 jobs retained and 8 jobs created to date

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Program Roles

• U.S. Environmental Protection Agency
• Department of Commerces Manufacturing Extension
  Partnership (MEP)
• State Environmental Experts
• Large Manufacturers
• Suppliers

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How the Program Works

• Corporate Champions join program
• Champions nominate suppliers
• Review team conducts assessment
• Supplier implements opportunities
• Champion and Green Suppliers Network get
  aggregated data

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MetalworksLudington, MI

• Manufacturer of metal filing cabinets
• Reduced water use by 16 million gallons from new
  parts washing practices
• saving 30,000 annually
• Reduced chemical use in parts washing by 20
• Saving 20,000
• Saved 50,000 in natural gas costs from
  redesigning curing oven orifices
• Saved 50,000 in natural gas costs to improved
  controls on air make up

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Sermatech ConnecticutManchester, Ct.

• Developing/applying engineered high performance
  protective coatings for aerospace
• A 4500 investment in the Green Suppliers Network
  review has yielded 1000 per month due to waste
  minimization, and an operating profit increase of
  25,000 a month, representing a 45 productivity
  improvement, for a total of 26,000 per month in
  savings.
• Reduced re-work by 75
• Reduced hazardous waste by 30
• Reduced VOC emissions by 66

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Green Suppliers NetworkLean Clean Reviews
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The Lean Clean Advantage

• Efficient use of labor, time, capital, energy
  raw materials
• Maximum quantity of products from least number of
  inputs
• Frees up resources to focus on opportunities

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Review Specifics

• Reviews first come, first served
• Reviews focus on single process
• On-site reviews take 2-3 days
• Cost
• 6,500 Cost of review
• 2,000 U.S. EPA discount
• 4,500 Total cost to supplier
• Suppliers Must Qualify Under SBA Definitions

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Green Suppliers Network Review

• Step 1 Understand Current State
• Get management support
• Identify project focus select team
• Perform operational assessment
• Determine benchmarks change potential
• Walk the floor
• Participate in onsite training
• Create value stream process maps

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Green Suppliers Network Review

• Step 2 Analyze System Conditions
• Identify waste sources
• Gather data to support options
• Conduct root cause analysis

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Value Stream Map
Current State Value Stream Map (Unmodified)
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Lean and Clean Tools and Techniques

• Add key environmental data to process boxes on
  value stream maps
• Materials lines can be developed for any major
  material source used in processes and products

EHS
EHS
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Process Mapping
Lubricants Water Energy
INPUTS
Raw Materials
Process
Final Product
Atmospheric Emissions Used Oil Contaminated Water
OUTPUTS
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Green Suppliers Network Review

• Step 3 Consider Improvement Options
• Create future state maps
• Prioritize continuous improvement list
• Present opportunities
• Prioritize implementation recommendations

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Implementing Changes

• Evaluate cost benefit analysis
• Green Suppliers Network provides access to
  implementation support
• 1,000 training credit
• Conduct independent follow-up survey to assess
  impacts
• Work must be coordinated through MEP center
  within 3 months of facility review

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Key Program Facts

• NO EPA personnel will come to your door
• Each GSN team is made up of MEP lean and state
  pollution prevention experts
• All information is confidential
• EPA nor your Customers will see facility specific
  data
• Decision to implement recommendations stays with
  you

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Next Steps
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Getting Started

• Review program information on the GSN website
  www.greensuppliers.gov
• Membership Guide
• Let GSN know of your interest
• The local GSN Team will contact you to schedule a
  time for the Review

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Questions?

• Kris Pierre, US EPA
• pierre.kristin_at_epa.gov
• 202-564-8837
• Alex Folk, NIST MEP
• Alex.folk_at_nist.gov
• 301-975-8089
• www.greensuppliers.gov