Sustainability in Manufacturing is about Survival

Recently, suppliers to Walmart have faced issues of green/sustainability as a matter of survival. In 2009, Walmart required over 100,000 direct suppliers to complete their Supplier Sustainability Assessment, with the goal of “Creating value for business and society.” Walmart will include the results in their criteria for determining which suppliers to work with. “Sustainable manufacturing products and processes will be seen as essential competitive differentiators in the competitive global marketplace,” states the Next Generation Manufacturing Study, produced by the Manufacturing Performance Institute for the American Small Manufacturers Coalition.

Sustainability incorporates a focus on environmental and social issues in addition to economic. Economic benefits can include decreased production and utility costs, increased revenues through new marketing opportunities, and enhanced employee retention. It can also minimize negative environmental and social impacts, provide value to customers, and reduce risks.

Initial manufacturing efforts at sustainability frequently focus on “lean manufacturing”, which improves processes, enhances resource utilization, decreases energy usage, and minimizes waste. An inward focus is a great starting point, but a broader view provides additional value. A more comprehensive strategic view includes the supply chain and the customer, and aspects such as greenhouse gas emissions and social justice. It may also identify risks to the company’s reputation, markets, and ability to operate profitably.

As an example, let’s look at the changes that a manufacturer of washing machines might make after looking at their company through a green/sustainability lens. Internally, the company may decide to utilize extremely efficient processes that minimize waste, energy use, and toxic releases. Looking into their supply chain, the company may design the washing machine to use materials that are easily available, have minimal environmental impact, and can be easily recycled. Looking at their consumer’s use of the product, the manufacturer may decide to design the product for higher energy efficiency. The net result would be a superior product, produced at a lower cost, which would provide additional value to the customer and thereby increased sales revenue.

Don’t be intimidated about embarking on the path towards more green/sustainable manufacturing. With proper planning, your efforts will result in a variety of benefits that may include lower costs, increased marketing opportunities, decreased business risks, and a happier and more engaged workforce.