Consumer Goods Technology - July 2008 - (Page 6)

INSIGHTS INDUSTRY ANALYSIS, DATA AND RESEARCH leadership. The following are just a few examples of how sustainability is shaping business decisions in our industry today: • There has been a 300 percent increase in climate change regulations over the last five years. • There is a 17 percent chunk of “green buyers” in the United States, and retailers are rolling out green initiatives at rapid pace. For example: Wal-Mart plans to invest $500 million per year in technology to reduce GHG emissions; Toys “R” Us launched an eco-friendly toy line; Safeway goes solar; Metro launched a green program; and Tesco is testing the use of “carbon labels” on its branded products. • By 2012, The Procter & Gamble Company plans to reduce its carbon footprint by as much as 40 percent, in part by cutting the size of its packaging. Other CG manufacturers are following with their own internally established goals. As more and more companies begin to adopt sustainable practices, and with regulatory compliance becoming a norm, it is clear that sustainability is not a passing fad, it is here to stay and will become more important in the years to come. M A K I N G S U S TA I N A B I L I T Y S U S TA I N A B L E If your company has not already done so, very soon you are going to have to examine — in ever greater detail — just how your existing business model is responding to and coping with the demands of the sustainability movement. Sustainability is more than just raw commodity, water or energy conservation. You will have to look at such issues as an optimized value chain, a focus on manufacturing using cleaner materials throughout the product lifecycle, and even consider working with scientific bodies, NGOs and government organizations to gain expertise and insights on what it means to be truly sustainable. CONSUMER GOODS TECHNOLOGY | J U LY 2 0 0 8 | It’s a big agenda and, if you are just beginning the journey, you may be asking where to start. Some practical ways to make sustainability real include: • Creating a sustainability asset management scorecard for the entire enterprise to improve operating performance and reduce energy consumption, fugitive emissions and wastage • Reducing your carbon footprint by optimizing in-bound and outbound transportation fleets using spatial and temporal proximity models attached to purchase order data • Leveraging product lifecycle management capabilities such as collaborative workflows, alerts and dashboards in direct support of your sustainability initiative and through product development support and supplier management • Direct to consumer outreach through the Internet, green labeling and consumer service lines to inform and encourage green behavior from point-of-purchase to disposal and recycling The above methods represent ways to make a tangible dent in creating a sustainability model that can get results. But, this work must also change habits and processes that have been long ingrained into the core of our industry. As with every business transformation, an initial assessment and gap analysis should be conducted first before designing and implementing a comprehensive program. In future articles, we will dive deeper into this first step, including offering greater detail for creating specific, measurable, and yes, sustainable results. CG By Michael Forhez, Senior Principal, Consumer Products & Retail Practice, and Anil Pahwa, Senior Principal, Retail, CPG and Logistics, Infosys Consulting 6 W W W. C O N S U M E R G O O D S . C O M http://www.infosys.com http://WWW.CONSUMERGOODS.COM

Table of Contents Feed for the Digital Edition of Consumer Goods Technology - July 2008

Consumer Goods Technology - July 2008 Contents Edit Note Insights Special Report Catching Up With... Energy-Minded Efficiency Waste to Wonder Greater Good Natural Business Built to Last Setting Sustainable Goals Sustainability, Part 2 CGT Events Between the Lines

Consumer Goods Technology - July 2008

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