Monday's Keynote addressed sustainability, change and the circular economy

Sustainability, Change and the Circular Economy

The future is all about change, and this point was driven home during the Keynote address Monday morning moderated by Andrew Winston, a sustainability expert and author of Green to Gold. There are "very deep changes happening," he said, and they are affecting how we come together as people and live out our lives. This point was elaborated on and illustrated during Winston’s introduction to "Building Sustainability for Competitive Advantage: Lessons learned from supply chain leaders" and the ensuing panel discussion with Tamara Barker, Chief Sustainability Officer and Vice President of Environmental Affairs, UPS; Randolph L. Bradley, Technical Fellow, Supply Chain Management, The Boeing Company; and Rick Bingle, Vice President of Supply Chain, REI.

As Winston pointed out, changes can sometimes be easy: "I ask and shall receive," he joked after his time allotment was immediately adjusted by 10 minutes after he asked for more time. But, sometimes, the changes are not so easy – especially when they deal with adapting to changes in the world around us, such as climate change. Not climate change models, he stressed, "but actually changes on the ground – very extreme weather that is affecting their operation around the world."

These are changes that require operations to change their business strategies. Changes in resources are another. The world population is going from 7 to 9 million, he said, which means "more demand for stuff." There are generational changes that are coming more and more into play. The new generation has a different attitude about society and a number of other things, he said. Changes in technology are a given, lately. But, the deepest changes on that front recently have been with the "transparency it enables. The questions we can ask and answer. We are gathering data in enormous quantities."

But, the biggest change of them all is in sustainability. There has been a "seismic shift in technologies" to build a sustainable base for your operations.

Each of the companies represented in the panel has had first-hand experience in how to address these changes, especially on the sustainability front.

Tamara Barker said UPS has had the longstanding practices of efficiency, time saving and safety. But, now, they are able to take all three to the next level through a software program they use with their drivers. "It takes route optimization to a new level," she said. It reduces route lengths by about 100 million miles per year and optimizes routes and fuel burn. "We consistently collect data and use that data," explained Barker.

UPS collects data for its UPS Rolling Laboratory, as well, for research on alternative fuels. "You don’t have a one-shoe or a one-fuel-fits-all," said Barker. "From testing, we compile data." In 2016, they had 8,116 vehicles using alternative fuels and covering a million miles a day. Interestingly, pedal power is figured into their comprehensive alternative fuel research too. In Hamburg, Germany, they now are using bicycles for some urban delivery situations.

Boeing is researching alternative fuels, as well, and has experimented with a multitude of biofuels sourced from all types of materials. They’ve stretched their research worldwide and have looked into creating biofuels from converted waste cooking oils, animal fats and tobacco lands, just to name a few. Currently, they have biofuel-powered jets that use a fuel chemically similar to green diesel, which is used in the trucking industry, said Randolph L. Bradley.

Boeing also has been researching solar power, as have UPS and REI. Boeing has some large-scale solar operations, such as a solar tube site in Utah, a grandiose solar panel layout in South Carolina and a hydroelectric center in Renton, Washington.

Barker, at UPS, said that solar makes sense. "We are putting solar panels on our facilities. We own the asset, we have the capital. It makes sense to do that."

Rick Bingle at REI is a supporter of solar panels, as well. "Everything we do below the roof is energized by material above the roof," he said. Once you have found the best possible outcome, then look at your solar needs, he explained. See it as an interesting challenge and start the discussion about energy usage in your building, ranging from the number of bodies in the building to whether PCs are used or laptops, he said.

REI is an expert when it comes to bringing everyone to the table to achieve something, which is exactly what they did when starting their journey to LEED Platinum status and zero net energy with their new building. "You start with a team," said Bingle. "Bring all those people together in the design stage of the operation. It has to be a part of start-up." Then establish a vision and utilize the knowledge and experience of the team. He reiterated: "Team. Vision. Knowledge."

REI used this approach when deciding to put the air conditioning units inside the building, allowing the roof to be used for solar panels. "It would have been a half-million dollars cheaper to put AC on the roof," he said. But, having them inside was the only way to have solar panels on the roof, he explained.

"You need to start having conversations that have trade offs," said Bingle.

The idea of "trade offs" comes into play when talking about sustainability as a circular economy and living in a reverse logistics world, too. It is a matter of priorities and logistics. "Logistics is at the center of closing that loop of a circular economy," said Barker.