Green Manufacturing Companies
New report from PA Consulting Group reviews the approach to green issues taken by four global manufacturing companies. ... Study: Manufacturing companies are making steady improvements in their green performance ...
Green Manufacturing Companies
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The 2012 ranking of supply chain leaders from Gartner includes a broad mix of global companies—a few new to the list, but most having recorded multiple appearances. These leaders share certain characteristics that drive day-to-day performance while solidifying the foundation for future growth. Their standout performance is raising the supply chain leadership bar for companies everywhere.
Dr. Sheffi will discuss the emergence of logistics clusters — communities that bring together a broad range of supply chain services and deep expertise — and what they mean for today's supply chain professionals.
In its 2012 Semiannual Economic Forecast, which is based on feedback from U.S.-based purchasing and supply chain executives, manufacturing and non-manufacturing sectors are expected to leverage the solid levels for various metrics each has been seeing over the last several months.
Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including: Full Web Access. All feature articles, bonus reports and industry research through scmr.com.
Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.
Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.
Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.PLUS+ subscriptions start as low as $129/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain. For assistance with your PLUS+ subscription, contact customer service. * Prices higher for subscriptions outside the USA.
Upgrade your subscription now.Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine. To access our premium content, you need to upgrade your subscription to our PLUS+ status. To upgrade your subscription account, please contact customer service at:
Email: scmrsubs@ehpub.com Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA) Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including: Full Web Access. All feature articles, bonus reports and industry research through scmr.com.
Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.
Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.
Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.
PA Consulting Group’s second annual benchmarking study of manufacturing companies shows that the companies under review have improved their green performance since early 2011. The benchmarking analysis is a snapshot of four global manufacturing companies—Siemens, GE, Alstom and ABB—that improved their green performance through various methods.
In a recent interview, Alex Davison, logistics analyst and managing consultant with PA Consulting, said that as industry leaders these large companies are in a unique position to drive change among their suppliers and carriers, as well as within their own organizations.
“Throughout the manufacturing and distribution industries, we’re seeing an increasing level of adoption of green technologies and practices,” said Davison. “It’s a classic case of large organizations using purchasing power and clout to go green while driving out costs.”
While transportation and associated fuel costs constitute the bulk of potential green improvements, both energy costs and customers are pushing supply chains to enhance efficiency. The rise in e-commerce, Davison said, highlights the need for efficient reverse logistics, which can be as important to a company’s bottom line as outbound logistics. Reusable packaging, such as pallets made of cardboard, are also increasingly used, he said.
In order to achieve more efficient product delivery, many companies will have to change the way they think about their supply chains. “In the manufacturing and other sectors, we will see increased sharing of resources between companies,” Davison said, who notes these practices are already underway in retail. “Where previously you wouldn’t see competitor’s products on the same truck, that will change, and it will be mutually beneficial.”
Davison emphasized technology and software that can coordinate such shipments. Similarly, warehouse management systems users are expanding the use of task interleaving, which aims to reduce non-productive man hours and empty equipment.
The companies in PA Consulting’s study were not only evaluated on the use of solar panels and efficient carrier arrangements, but on their renewable product portfolios or products that offered a significant green improvement over previous models. Companies were given weighted scores in three areas – product portfolio, strategy and organization, and transparency and operational performance – to provide a total score out of 100.
For the second consecutive year, Siemens is the greenest company in the sample. ABB improved its overall score and comes second in the PA Consulting Group ranking of green performance. GE ranked third and Alstom remained in fourth place. However, both had made improvements in reducing the gap between them and the top two companies.
Companies’ contributions to global environmental efforts were assessed and their green products were analyzed. In the 2011 study, Siemens analyzed the life-cycle environmental impact of 49 per cent of its products; in 2012 this increased to 88% of products. The 2012 study showed that Siemens generated 41% of its total revenue from green products, compared to 38% of revenue reported in the 2011 study. Meanwhile, ABB and Alstom increased their range of green products and revenue generated from them. ABB generated 60% of its revenue from green products, representing a growth of 14% in this area. Its performance in life cycle analysis remained the same, at 80% coverage of its products. GE increased its green products revenue share from 20% in 2010 to 22% in 2011.
PA Consulting Group looked at how clearly expressed and communicated the sustainability strategy of each company was and how sustainability is embedded within the four organizations. According to PA Consulting Group’s analysis, Siemens continued to perform strongly in this area but Alstom showed most improvement since early 2011. It has improved the clarity and scope of its sustainability strategy by making its environmental information more widely available in the public domain and increasing green awareness throughout the company.
Using the Carbon Disclosure Project Global 500 Index report, PA measured the transparency of information the companies provide to the public. For the 2012 study, PA used figures from 2009, 2010 and 2011 to assess changes in greenhouse gas emissions as well as energy and water consumption over these years. ABB leads on reducing energy consumption by 11.3 per cent, greenhouse gas emissions by 4 per cent and water consumption by 13.5 per cent. GE reported an improvement of 1.3 per cent in its energy savings, an improvement of 6.4 per cent in its greenhouse gas emissions and 30 per cent in its water consumption since 2009. Siemens already operates efficiently in this area and did not report any further year on year savings between 2009 and 2011.
Edmond Cunningham, greening business expert at PA Consulting Group, said: “This year’s study showed that each company in the sample improved on its early 2011 score, with both ABB and Alstom gaining momentum in making their businesses greener and improving their presence through eco-friendly products.”
“Clear steps must be taken to improve companies’ performance even further in order to make each company truly green, including setting ambitious goals and monitoring performance against those goals,” said Mr. Cunningham. “In most cases, this will require the creation of a management role focusing on implementing environmental objectives. Secondly, these companies do not just need to make great products, but they must design them in a way that minimizes the use of resources in operation, ensuring they are recyclable and eco-friendly.”
PA Consulting Group carried out a benchmarking study of the performance of a sample of global companies (Siemens, GE, Alstom and ABB) in the industrial engineering sector, tracking changes in performance between early 2011 and the middle of 2012.
The 2011 study took place in Q1 of 2011 and used the most recent data available, which at the time were figures from 2009. The 2012 study took place in Q3 of 2012 and used the most recent data available, which was from 2011.
The study was carried out using public data that was available at the time the study took place. This included annual reports, environmental and sustainability reports, corporate websites and the Carbon Disclosure Project report.
PA assessed the clarity of the companies’ sustainability strategy and how well green approaches are integrated into a company’s organization, operations and supply chain. This assessment is worth 15% of the total score.
For the 2012 study, PA analyzed how transparent the company is about its environmental performance and its results over the past three years (2009, 2010 and 2011) to assess changes in greenhouse gas emissions as well as energy and water consumption. PA also included results from the Carbon Disclosure Project Global 500 Index report to obtain an objective measure of the transparency of information the business provides to the public. This assessment is worth 15% of the total score.
The third element, which has specific relevance to the industrial engineering companies in the sample, analyzed how green products were and the revenue generated from the green products portfolio. PA assessed the size of the portfolio, its growth and the impact of the individual product’s lifecycle on the environment and the proportion of revenue generated by a company’s green portfolio. This assessment is worth 70% of the total score.
U.S.-bound waterborne shipments, which were up 9 percent from June to July and down 3 percent from July to August, dropped 4 percent from August to September.
The researchers interviewed various companies with different and relevant supply chain roles in Europe about the benefits of horizontal collaboration initiatives.
As their operations come under more pressure to reduce costs and cut CO2 emissions, companies increasingly regard cooperation with enterprises from other supply chains as a source of competitive advantage.
Supply Chain Executives from companies including HP, Lenovo, Avnet, Cisco and Infineon will be coming together in San Francisco on October 23rd at the 6th Annual Hi-Tech & Electronics Supply Chain Summit.
The 2012 ranking of supply chain leaders from Gartner includes a broad mix of global companies—a few new to the list, but most having recorded multiple appearances. These leaders share certain characteristics that drive day-to-day performance while solidifying the foundation for future growth. Their standout performance is raising the supply chain leadership bar for companies everywhere.
Dr. Sheffi will discuss the emergence of logistics clusters — communities that bring together a broad range of supply chain services and deep expertise — and what they mean for today's supply chain professionals.
In its 2012 Semiannual Economic Forecast, which is based on feedback from U.S.-based purchasing and supply chain executives, manufacturing and non-manufacturing sectors are expected to leverage the solid levels for various metrics each has been seeing over the last several months.
Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including: Full Web Access. All feature articles, bonus reports and industry research through scmr.com.
Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.
Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.
Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.PLUS+ subscriptions start as low as $129/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain. For assistance with your PLUS+ subscription, contact customer service. * Prices higher for subscriptions outside the USA.
Upgrade your subscription now.Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine. To access our premium content, you need to upgrade your subscription to our PLUS+ status. To upgrade your subscription account, please contact customer service at:
Email: scmrsubs@ehpub.com Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA) Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including: Full Web Access. All feature articles, bonus reports and industry research through scmr.com.
Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.
Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.
Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.
PA Consulting Group’s second annual benchmarking study of manufacturing companies shows that the companies under review have improved their green performance since early 2011. The benchmarking analysis is a snapshot of four global manufacturing companies—Siemens, GE, Alstom and ABB—that improved their green performance through various methods.
In a recent interview, Alex Davison, logistics analyst and managing consultant with PA Consulting, said that as industry leaders these large companies are in a unique position to drive change among their suppliers and carriers, as well as within their own organizations.
“Throughout the manufacturing and distribution industries, we’re seeing an increasing level of adoption of green technologies and practices,” said Davison. “It’s a classic case of large organizations using purchasing power and clout to go green while driving out costs.”
While transportation and associated fuel costs constitute the bulk of potential green improvements, both energy costs and customers are pushing supply chains to enhance efficiency. The rise in e-commerce, Davison said, highlights the need for efficient reverse logistics, which can be as important to a company’s bottom line as outbound logistics. Reusable packaging, such as pallets made of cardboard, are also increasingly used, he said.
In order to achieve more efficient product delivery, many companies will have to change the way they think about their supply chains. “In the manufacturing and other sectors, we will see increased sharing of resources between companies,” Davison said, who notes these practices are already underway in retail. “Where previously you wouldn’t see competitor’s products on the same truck, that will change, and it will be mutually beneficial.”
Davison emphasized technology and software that can coordinate such shipments. Similarly, warehouse management systems users are expanding the use of task interleaving, which aims to reduce non-productive man hours and empty equipment.
The companies in PA Consulting’s study were not only evaluated on the use of solar panels and efficient carrier arrangements, but on their renewable product portfolios or products that offered a significant green improvement over previous models. Companies were given weighted scores in three areas – product portfolio, strategy and organization, and transparency and operational performance – to provide a total score out of 100.
For the second consecutive year, Siemens is the greenest company in the sample. ABB improved its overall score and comes second in the PA Consulting Group ranking of green performance. GE ranked third and Alstom remained in fourth place. However, both had made improvements in reducing the gap between them and the top two companies.
Companies’ contributions to global environmental efforts were assessed and their green products were analyzed. In the 2011 study, Siemens analyzed the life-cycle environmental impact of 49 per cent of its products; in 2012 this increased to 88% of products. The 2012 study showed that Siemens generated 41% of its total revenue from green products, compared to 38% of revenue reported in the 2011 study. Meanwhile, ABB and Alstom increased their range of green products and revenue generated from them. ABB generated 60% of its revenue from green products, representing a growth of 14% in this area. Its performance in life cycle analysis remained the same, at 80% coverage of its products. GE increased its green products revenue share from 20% in 2010 to 22% in 2011.
PA Consulting Group looked at how clearly expressed and communicated the sustainability strategy of each company was and how sustainability is embedded within the four organizations. According to PA Consulting Group’s analysis, Siemens continued to perform strongly in this area but Alstom showed most improvement since early 2011. It has improved the clarity and scope of its sustainability strategy by making its environmental information more widely available in the public domain and increasing green awareness throughout the company.
Using the Carbon Disclosure Project Global 500 Index report, PA measured the transparency of information the companies provide to the public. For the 2012 study, PA used figures from 2009, 2010 and 2011 to assess changes in greenhouse gas emissions as well as energy and water consumption over these years. ABB leads on reducing energy consumption by 11.3 per cent, greenhouse gas emissions by 4 per cent and water consumption by 13.5 per cent. GE reported an improvement of 1.3 per cent in its energy savings, an improvement of 6.4 per cent in its greenhouse gas emissions and 30 per cent in its water consumption since 2009. Siemens already operates efficiently in this area and did not report any further year on year savings between 2009 and 2011.
Edmond Cunningham, greening business expert at PA Consulting Group, said: “This year’s study showed that each company in the sample improved on its early 2011 score, with both ABB and Alstom gaining momentum in making their businesses greener and improving their presence through eco-friendly products.”
“Clear steps must be taken to improve companies’ performance even further in order to make each company truly green, including setting ambitious goals and monitoring performance against those goals,” said Mr. Cunningham. “In most cases, this will require the creation of a management role focusing on implementing environmental objectives. Secondly, these companies do not just need to make great products, but they must design them in a way that minimizes the use of resources in operation, ensuring they are recyclable and eco-friendly.”
PA Consulting Group carried out a benchmarking study of the performance of a sample of global companies (Siemens, GE, Alstom and ABB) in the industrial engineering sector, tracking changes in performance between early 2011 and the middle of 2012.
The 2011 study took place in Q1 of 2011 and used the most recent data available, which at the time were figures from 2009. The 2012 study took place in Q3 of 2012 and used the most recent data available, which was from 2011.
The study was carried out using public data that was available at the time the study took place. This included annual reports, environmental and sustainability reports, corporate websites and the Carbon Disclosure Project report.
PA assessed the clarity of the companies’ sustainability strategy and how well green approaches are integrated into a company’s organization, operations and supply chain. This assessment is worth 15% of the total score.
For the 2012 study, PA analyzed how transparent the company is about its environmental performance and its results over the past three years (2009, 2010 and 2011) to assess changes in greenhouse gas emissions as well as energy and water consumption. PA also included results from the Carbon Disclosure Project Global 500 Index report to obtain an objective measure of the transparency of information the business provides to the public. This assessment is worth 15% of the total score.
The third element, which has specific relevance to the industrial engineering companies in the sample, analyzed how green products were and the revenue generated from the green products portfolio. PA assessed the size of the portfolio, its growth and the impact of the individual product’s lifecycle on the environment and the proportion of revenue generated by a company’s green portfolio. This assessment is worth 70% of the total score.
U.S.-bound waterborne shipments, which were up 9 percent from June to July and down 3 percent from July to August, dropped 4 percent from August to September.
The researchers interviewed various companies with different and relevant supply chain roles in Europe about the benefits of horizontal collaboration initiatives.
As their operations come under more pressure to reduce costs and cut CO2 emissions, companies increasingly regard cooperation with enterprises from other supply chains as a source of competitive advantage.
Supply Chain Executives from companies including HP, Lenovo, Avnet, Cisco and Infineon will be coming together in San Francisco on October 23rd at the 6th Annual Hi-Tech & Electronics Supply Chain Summit.
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