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“ 11 Step Approach ” To Sustainability

As you go through several fortune 500 companies sustainability initiatives, it is apparent many of them somehow are connecting these intitiatives to precisely reduction of paper consumption and environmental aspects/impacts. Since Corporate America is talking a lot about "sustainability" nowadays, it is not a bad idea to develop some strategies for sustainability.

The following strategies, at a minimum, provide some critical
aspects of sustainability to ensure coherency with our customer requirements:

1. Understand customer expectations
Several Fortune 500 companies such as Walmart, Target, and General Mills
have established their twist on sustainability initiatives. There are a lot of similarities in their expectations from Suppliers. Waste reduction, usage of renewable resources, making products that sustain natural resources and environment and reduction of Green House Gases are some of the common expectations. However, understanding their emphasis and comprehensive expectations make a difference in implementing them.

2. Understand risks associated with corporate responsibility
Risks associated with pollution of air, water and land can cost money. As a corporation, mitigation of risk is most critical factor for a cost effective operation. Not elimination of entire risk. Striking a good balance between business and environmental risks is highly recommended.

3. Understand profitability connection to business sustainability
Many customers love to impose requirements on suppliers. This imposition of customers on suppliers is also known as "partnership". This means you do everything what I tell you to do. When in doubt, customers blame the
suppliers. Recognizing profitability connection prior to implementing any
sustainable initiative is crucial for business sustainability.

4. Understand sustainability related terminology
Understanding terms and concepts prior to implementation of any sustainability initiatives is vital. Global warming, greenhouse gases, renewable energy, pollution prevention, sustainability, climate control, energy conservation, sustainable development, environmental aspect, environmental impact and sustainability reporting are some to name a few. Understanding accurate intent of these terms is essential prior to application.

5 . Establish sustainability objectives and targets with business/environmental performance indicators.
Based on customer expectations, regulatory requirements, social/environmental challenges and involved risks, the top management should establish realistic business/environmental sustainability objectives and targets with performance indicators. Reducing energy usage by 10% is one of the sustainability objectives with performance metric which has a cost reduction component(business) and also energy conservation component(environmental).

6 . Design products to meet sustainability objectives and targets.
Designers play a very critical role in identifying sustainability components during product design. Ensuring materials used in packaging are made from renewable resources and recyclable materials appears to be a key role of packaging designers. Reduction of paper content usage without sacrificing functionality is another emphsis for designers to meet some corporate customers' sustainability initiatives.

7 . Disseminate customer expectations and internal sustainability objectives/targets to supply chain and procurement channels.
AICC members' supliers play a critical role in meeting in meeting established sustainability objectives/targets. Dissemination of AICC members expectations to entire supply-chain is essential. Customers, organizations and suppliers, as a team, developing an overall strategy in a comprehensive way is the most effective way to meet with social/economic/environmental challenges.

8. Apply the right tools/standards to accomplish set objectives and targets
To accomplish set objectives and targets, identification of accurate and appropriate tools/techniques and standards is essential. Lean tools to reduce all types of waste in all processes ( manufacturing and nonmanufacturing) from "Quote to Cash" is a very powerful methodology to improve bottom-line and thus achieving business sustainability component. A disciplined path for problem-solving is another essential business sustainability tool for profit maximization. An ISO 14001 standard, and Climate Control standards have built-in disciplines to meet all environmental sustainability components to address critical requirements such as Pollution(air, land and water) prevention, conservation of natural resources, energy conservation and reduce greenhouse gas emissions. Application of these tools/techniques and standards effectively results in long-term business/environmental sustainability.

9. Establish measuring(auditing) and monitoring mechanism.
Several corporations using score cards, internal audits, 5 star programs etc to monitor conformance and compliance to established objectives/targets. Developing a clear criteria to measure/monitor and audit sustainable aspects is an excellent approach for long-term sustainability. Ensuring competent auditors to perform these audits is necessary for achieving desired results. Usage of a comprehensive audit Prompt/Check list to cover all processes from "Quotation to Cash" on a quarterly basis is a proven approach for striking significant improvement.

10. Implement solutions through disciplined methodologies
A measurement/audit does not solve problems. A disciplined methodology to
solve manufacturing and non-manufacturing process problems is crucial to implement solutions. In the absence of a disciplined problem-solving methodology, the process owners blame other process owners. The top management recognizing this need and providing resources for training teams to apply this disciplined methodology is a good path for sustainability. Many automotive customers require their suppliers to use their own problem-solving methodologies. Ford requires usage of their 8D (8 Discipline) methodology.

11 . Conduct periodic management reviews and continually improve.
The top managemet reviewing the sustainability performance metrics against established sustainability objectives/targets on a quarterly basis along with Business Performance Results is a very effective way to maintain and continually improve all business and environmental components of sustainability.

Application of these 11 specified strategies has a very likely chance of achieving desired sustainability results. Modification of these strategies to fit your needs is encouraged.

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