Supply-chain fixes are the secret sauce for three NY companies

P2 Impact

Supply-chain fixes are the secret sauce for three NY companies

Image of ice cream sauce by Viktor1 via Shutterstock

Sustainable organizations can become preferred business partners, thanks to the demand for sustainable suppliers. Organizations that integrate sustainability into their operations likely will generate more revenue, retain and potentially create jobs, and reduce the risk of jeopardizing potential business.

Both of us work at the New York State Pollution Prevention Institute, which assists companies in the state with their journey along the sustainability continuum. Through NYSP2I's "Sustainable Supply Chain" program, manufacturers learn to identify opportunities to become leaders in their industry sector by recognizing their impacts, determining a strategic certification or label to pursue and educating stakeholders on making sustainable purchasing decisions.

NYSP2I has assisted several companies with identifying opportunities to meet customer demands while reducing environmental impacts. Three are discussed here: a food manufacturer; a start-up packaging company; and an established granite countertop manufacturer. Each had an obstacle to overcome in order to gain or retain customers.

1. Baldwin Richardson Foods

Baldwin Richardson Foods wanted to be a greener supplier — and its customers demanded the same — but the company needed assistance to understand how to improve communication of its activities. BRF manufacturers and supplies custom developed products and ingredients for food service and consumer packaged goods companies. Using a supply chain sustainability assessment tool developed by NYSP2I, we performed an assessment at BRF to determine which common components of internationally accepted sustainability guidelines it was using.

NYSP2I staff conducted a review of BRF's policies, initiatives, relevant company data and production processes. Staff also interviewed members of BRF's sustainability team, as well as procurement, marketing and production department managers. The assessment identified opportunities for improvement and determined BRF's preparedness to fully report to its customers and stakeholders on its environmental sustainability commitments and efforts.

The assessment concluded that BRF is committed to sustainability and is well-equipped with the resources necessary to create a company with a competitive advantage due to its sustainability focus. As a supplier always striving for continuous improvement, BRF is able to support its supply chain and customer sustainability efforts and influence its suppliers to make sustainable choices. By retaining and growing customers, BRF expects to retain its current employees and add new jobs focused on sustainability.

Per John Cairns, BRF's director of engineering, "BRF has a better understanding of the appropriate reporting and documentation necessary for its sustainability actions as well as areas of improvement to help the company continue to make further enhancements to its sustainability practices. The assessment tool and report provided by NYSP2I has not only provided direction for BRF to supports its customers' sustainability efforts but also yielded insights for how the company can influence its own suppliers in making sustainable choices. With credibility as a supplier focused on sustainability, BRF has a recognized competitive advantage in the marketplace which makes the company a preferred business partner within the food and beverage industry."

2. Ecovative Design

Ecovative Design is developing a new class of high-performance products which serve as environmentally responsible alternatives to traditional foam packaging, insulation and other plastic-based materials. Ecovative's Mushroom Packaging is made from agricultural byproducts and mycelium, or mushroom "roots."

 Ecovative

A large global electronics company with sustainable supply chain goals was very interested in Mushroom Packaging for protective packaging. However, this company wanted Ecovative to prove the product was compostable at industrial composting facilities. So in an effort to gain this potential customer's business, and others', Ecovative decided to pursue The Biodegradable Products Institute scientifically based label for compostable materials that biodegrade in large composting facilities. Products with the BPI label can be readily identified as compostable, which quickly allows customers to make an informed choice.

[Learn more about smarter supply chains at VERGE SF 2014, Oct. 27-30.]

Ecovative requested that NYSP2I provide assistance in obtaining BPI certification for Mushroom Packaging. After passing disintegration testing to prove its materials are biodegradable in an industrial composting facility, and meeting other requirements, Ecovative's product qualified for BPI certification. Ecovative projects up to a 20 percent increase in customers as a result of becoming BPI certified, along with potentially creating new jobs in New York.

According to Gavin McIntyre, co-founder and chief scientist at Ecovative Design, "NYSP2I researched and managed the testing of Ecovative's Mushroom Packaging to achieve BPI certification, which is critical for meeting customer expectations for using a biodegradable package and reducing the environmental impacts of product end-of-use. These clear and quantified claims allow Ecovative to expand its market opportunities and potentially increase sales by 20 percent, leading to employee growth at our New York state facility."

3. M.C.M. Natural Stone

M.C.M. Natural Stone Inc. manufactures granite countertops, landscaping products, fireplace surrounds and accent pieces. M.C.M. is expanding its business to include the recovery and reuse of granite waste to produce 100 percent recycled granite pavers, veneers and mosaics, known as "Bella Terra" products.

M.C.M. noted that in the industry, up to 30 percent of the original granite slab is considered to be scrap after cutting for install. The scrap is sent to the landfill. M.C.M. recognizes an opportunity to avoid the landfill by salvaging these scrap pieces of granite for use as pedestrian and light traffic pavers.

 M.C.M. Natural Stone

To make this opportunity viable, M.C.M. requested that NYSP2I evaluate its Bella Terra Granite Pavers for mechanical performance and determine if they are a feasible alternative to other manufactured paver products on the market. The Bella Terra Granite Pavers successfully met or exceeded the ASTM requirements, which is information that the company can use to market these pavers to architects and construction contractors.

Additionally, because Bella Terra is a recycled product, NYSP2I determined that the pavers can contribute to credits for U.S. Green Building Council's Leadership in Energy & Environmental Design certification for building construction projects because they are locally sourced and are made from 100 percent pre-consumer and post-consumer waste.

These characteristics enable M.C.M. to expand its market to environmentally conscious commercial customers looking for sustainable products, which increases sales and enhances material recovery. M.C.M. projects an increase in annual revenue of 15 percent, which will allow it to add additional employees. "By validating our granite pavers meet or exceed the standard requirements of other competing products on the market, and the potential for assisting customers with gaining LEED credits, M.C.M. Natural Stone is now able to enhance our ability to market and sell our products made from 100 percent waste that would otherwise be sent to landfills," said Mike Valle, founder and general manager, M.C.M. Stone, Inc.

Identify areas for improvement

To be sustainable suppliers, companies need to recognize where they can improve, then act to implement changes that support people, planet and profit. The NYSP2I Sustainable Supply Chain program helps companies in New York to recognize opportunities to reduce their costs and environmental impacts, expand their customer base, increase revenue and create jobs while creating a more sustainable supply chain.

Top image of ice cream with caramel sauce by Viktor1 via Shutterstock.