Best Practices Initiatives
Planned best practice initiatives
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Making Green Supply-Chain Environmental Results a Profitable Reality

Driving needs: Supply-chain activities can make a significant contribution to meeting utilities' environmental objectives and goals, while acquiring the best-cost materials and services.  With our industry facing major environmental and financial challenges-both short and longer-term, utilities executives must act quickly and decisively in leveraging the capabilities of supply chains.  The opportunity to learn first-hand from leading companies outside our industry that have achieved success in proactively developing and implementing financially enhancing green supply-chain best practices will provide essential knowledge to move quickly and decisively.

Core issues:

  • Implementing sustainable supply-chain strategies and initiatives that accomplish the environmental and financial management objectives of both the entire supply chain and individual companies within the supply chain

  • Gaining the commitment and active participation of senior management and all internal stakeholders for the cost-effective acquisition of greener, cleaner materials and services.

  • Integrating green supply-chain environmental and financial considerations into all relevant corporate decision-making processes
  • Educating and training suppliers on effective green supply-chain corporate policy and management practices and processes
  • Developing, communicating and actively managing supplier expectations and scorecards

  • Implementing an active verification process for monitoring and holding suppliers accountable for delivering on their green supplier commitments

Supporting issues:

  • Counseling suppliers in adoption of prudent environmental ethics policies, responsible health and safety practices, and effective operating practices

  • Deploying leading-indicator green supply-chain metrics

  • Measuring the shareholder value of green supply-chain activities

  • Managing green/clean supply chains as an integrated portfolio

  • Developing and implementing a green supply-chain environmental management system

  • Making environmentally and financially sound waste disposal, salvage, and recycling decisions

  • Guiding and coaching internal and supplier behavioral and cultural change

Candidate best-practices companies: DuPont, Clorox, FedEx, Hewlett-Packard, General Electric, Boeing, Dell Computer, Procter & Gamble
 

Key start-up dates:
January 17, 2011: First best-practices meeting at Hewlett-Packard

 

 

Maximizing the Value of Support Services
Driving need: Line organization and support services managers are increasingly challenged to ensure that the highest possible value of services is rendered. The current mantra is: deliver excellent value or perish-an outsource provider is around every corner.

Core issues:
  • Reaching agreement and alignment between support services and line organizations-including information technology, human resources, finance, accounting, supply-chain management, technical services-on critical value-adding issues
  • Developing the process for reaching a common understanding of "value"
  • Defining cost and non-cost performance metrics
  • Describing and establishing the optimal mutually beneficial relationship-customer/supplier, partnership, etc.-between the line organization and the service provider
  • Managing the delivery of support services with shrinking and constantly changing resources
  • Establishing the processes and practices for holding the provider and client accountable for results
  • Adequately balancing the often disparate requirements placed on a given service provider by various internal organizations
  • Funding and/or paying for services rendered by either internal or external service providers
  • Evaluating and managing outsourcing options
  • Overcoming cultural barriers to process-improvement change
  • Making the best use, if any, of a "shared services" model
Candidate best practice companies: AT&T, General Electric, IBM, United Airlines; 3M, Cisco Systems

Key start-up dates:
To be determined

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