sustainable value chain management - scc europe conference 2013
TRANSCRIPT
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 1 | October 2013
Sustainable Value Creation -xCOR(r) enabledMichael D’heur – shared.value.chainDr. René Schmidpeter – Center for Humane Market Economy
SCC Europe Conference, Frankfurt, 07 October 2013
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 2 | October 2013
Your Presenters
Dr. René Schmidpeter
Academic DirectorCentre for Humane Market Economy
Salzburg, AUSTRIA
Lecturer: „Advanced Business Ethics & Economics“University of Eichstaett-Ingolstadt, GERMANY
Michael D‘heur
Founder & Managing Directorshared.value.chain Management Consultants
Munich, GERMANY
Editor of „CSR und Value Chain Management“ (Springer-Gabler, October 2013)
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 3 | October 2013
The Context for Business and Society is Set by Constant Change and Higher Interdependencies
• Fossil Fuels• Rare Earths• Fertile Farmland• Freshwater
• Volatility of Demand / Supply
• New markets• Changing
demographics
• Interdependencies• Disruption risks• Stability of supply
networks
• Record Profits• Societal Issues• Compliance
Business Challenges Accelerators
“What is the right approach to value
creation?”
Market Volatility Natural resources
Profit vs. PurposeGlobal Value Chain
xMan made disasters
Natural disasters
Key Question
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 4 | October 2013
The Question is How Businesses Approach the New Context to Drive Value Creation
Value Creation Approach CORPORATE SOCIAL
RESPONSIBILITY AND VALUE CHAIN MANAGEMENT
Approach of Economy
Growth Paradigm
„Perpetual“
Sole Focus on Economic Value
Economic, Ecologic, Societal Value
„Circular“„Linear“
„Resource depleting“ „Resource building“
„Two Worlds“ „Two sides of the same coin“
„Sustainable“
CORPORATE SOCIAL RESPONSIBILITY OR VALUE
CHAIN MANAGEMENT
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 5 | October 2013
‘Outside-In’ View: Governments and Society Expect More from Businesses When it Comes to CSR
„CSR is a process whereby companies integrate social, environmental and ethical issues into their business operations and strategy in close interaction with their stakeholders, going beyond the requirements of applicable legislation and collective agreements. …
A strategic approach to CSR is increasingly important to the competitiveness of enterprises, helping them to create value both for owners and shareholders … to win the trust and respect of citizens …
Source: European Union – CSR Strategy 2020
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 6 | October 2013
CSR Needs to be a Management Approach to Fulfil the High Expectations
Source: Edelman Trust Barometer 2011
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 7 | October 2013
CSR Applied as Part of a Management Approach can Deliver Value Business and Society (Shared Value)
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 8 | October 2013
Capturing the Value Opportunities Requires Driving The Change ‘Inside-Out’ From the Core Business
Organisation Stakeholder/Society
New Products and ServicesNew ProcessesNew MarketsNew Business ModelsNew Management- and Reportingsystems
Source: Eva Grieshuber (2012) in Schneider/Schmidpeter (Hrsg.): Corporate Social Responsibility, p. 375
The Core Business (Products & Value
Chains)
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 9 | October 2013
However, In Many Companies There is a Gap Between CSR and the Core Business
Quelle: shared.value.chain (2013)
Operations
CSR / Sustainability
SPR RD
Global Value Chain
Product Development
M
Legend: (P) Plan, (S) Source, (M) Make, (D) Deliver, (R) Return
Lifecycle Management
Global Value Chain
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 10 | October 2013
To Bridge the Gap Integration of Sustainability and Core Business Needs to Happen Across the Value Chain
The SCC xCOR Toolkit can be used as a reference to start the integration from the Core
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 12 | October 2013
xCOR Supports the Transition From Supply Chains Towards Integrated Value Chains
Supplier processes
Product DesignDCOR™
Custom
er processes
Supply Chain SCOR ®
Sales & SupportCCOR™
Product Lifecycle Management
An invaluable source of knowledge, frameworks, metrics and benchmarks – Eventually enabling your teams to make progress based on a common language and facts (instead of emotions)
The SCC xCOR Value Chain Toolkit
Pro
du
ctS
up
ply
Ch
ain
Cu
stom
erE
mp
loy ees
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 13 | October 2013
Applying xCOR to the Value Creations Points Can Help to Bridge the Gap – Example: Sourcing
Source: shared.value.chain (2013)
Review Areas
Value Creation Point
SOURCE
EconomicPurchase PriceProduct QualitySupplier Delivery Performance Supplier Reliability
EcologicDepletion of local resourcesImpact on biodiversityOptions for renewable sources
SocietalWorking conditions of supplierLocal impact of SOURCE process
How xCOR can help
ProductSupplier inclusion into development processLifecycle management process
Supply ChainProcess templatesBest practices for sourcing & supplier collaborationJoint metrics for economic, ecologic and societal KPIs
CollaborationMapping stakeholders and understanding of their requirements
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 14 | October 2013
xCOR can Help to ‘Connect all Dots’ and to Enable Sustainability in the Core Business
Sustainable Product (PD & LCM)
Sustainable Operations (SCM)
Innovation
Use Phase & End-of-Life
Raw Material & Services
Your OrganizationSupplier Customer
RETURN
SOURCE MAKE DELIVER
Innovation
RETURN
PLAN
PLAN
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 15 | October 2013
Several Companies Have Decided to Lead the Way Towards Sustainable Value Creation
Value Creation Strategy
Sustainable Products
Sustainable Operations
Enterprise Architecture
Stakeholder Collaboration
Business Planning
Continuous Cost Reduction
Supplier & Partner
Networks
1
2
3
4
5
6
7
8
Creating Shared Value Program
Plan A Committment
Energy Saving ICsReduced Impacts during Use Phase
Sustainable Supply Chain
Sustainable Apparel & SC
Integrated ScorecardMeasuring sustainability in the Agro SC
Regional Administration Development Partnership
Safe & Fair Labour
Planning for Asset Recovery
Demand-Supply Synchronization
Logistics Cost Reduction
Environmental P&L
Empowering rural womenLocalized Vanilla SC
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 16 | October 2013
Conclusion – Sustainable Value Creation Needs to be Driven Through the Core Business
1 Change Perspective – Drive sustainable value creation through the core business (‚Inside-Out‘)
2 Collaborate for Opportunities – Integrate Sustainability across the Value Chain
3 Get started - the xCOR toolkit gives you a excellent starting position. Add the 6th sense of business (Sustainability) into the Model going forward
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 17 | October 2013
Find out more in ‘CSR und Value Chain Management’ – Sustainable Value Creation in Action
Springer Publishers, German Language, Publishing Date October 2013 For more Information please visit http://bit.ly/1fTcrWg
Independent Capital
Management AG
© 2013 Supply Chain Council. ALL RIGHTS RESERVED. | Sustainable Value Creation | Slide 18 | October 2013
THANK YOU
Michael D‘heur, shared.value.chain+49 170 768 58 [email protected]
Dr. René Schmidpeter, Center for Humane Market Economy+49 173 255 48 [email protected]