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What does it mean to be a sustainable company?
WINSTON: One answer is that it’s a company that isn’t drawing down
more than it’s producing. But it’s very challenging to break that down
into what it looks like day to day, and that’s why everyone is talking
about this. It’s going to take years and generations to fi gure that out.
At the same time, the data and hard facts of just what’s going on out
there are getting scarier. We have less and less time to answer that
question.
This is new territory for most companies, isn’t it?
WINSTON: It is. If you go to conferences, it seems like everyone is
talking about this. The reality is that most companies are really just
starting to think green.
Are there some industries that are further ahead on this?
WINSTON: Basic resources, like energy, paper and forestry, have been
dealing with environmental regulations for decades because they have
the most obvious impact on the environment. Now, you’re seeing retailers
and consumer brands pursuing a green strategy as a consumer
niche. The ripple effect of those two phenomena is putting pressure on
everyone in the middle. That’s why people doing supply chain work
are right in the heart of this now.
Have lifecycle management regulations in Europe had
an impact?
WINSTON: Yes, especially on the electronics and chemicals industries.
The ROHS directive, for instance, determines what substances can be
in products. Big tech companies have had to remake their products
and re-engineer their processes. And then the WEEE directives determine
how they dispose of their products at the end of life. Those are
clearly logistics and supply chain issues because you’re dealing with
reverse logistics and how you get your products back. The academic
phrase is extended producer responsibility, but it really comes down
to, you make it, you own it.
What are the forces that are impacting companies today?
WINSTON: Fundamentally, the Green Wave can be divided into two
buckets. First, there is the natural world and the real resource con-
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Copyright© 2008 Material Handling Industry of America. All rights reserved.
By John Nofsinger, CEO
Material Handling Industry of America
EXECUTIVE VIEW POINT
M i l H dli I d f A i
According to Wikipedia, the phrase perfect
storm refers to the simultaneous occurrence
of events which, taken individually,
would be far less powerful than the result
of their chance combination. Such occurrences
are rare by their very nature, so that even a slight
change in any one event contributing to the perfect
storm would lessen its overall impact.
I had the occasion last fall to participate in
a disaster relief simulation. The objective was
to save lives on an island nation being simultaneously
threatened by both storm and seismic
events. Events unfolded at a frenzied and random
pace. Protocols to communicate among
and between relief teams were evolved on the
fl y and often had to be improvised when systems
fell apart.
The exercise ended in success, but, (as intended)
showed the importance of research,
planning, organization and communication activities
– as well as dealing with chance combinations
of events.
The objective of assuring that the right
results occur in and between supply chains
shows similar and perhaps more predictable
complexities that lend themselves to thoughtful
research and carefully crafted solutions.
Let’s take only one variable at the moment
– labor. All credible statistics point to the fact
that changing demographics stand to disrupt
and complicate the process of handling, moving,
storing, controlling, and protecting goods in and
along supply chains. We are advised that over the
next several decades we will be faced with:
• Fewer workers
• Older workers
• Fewer educated workers
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