Hewlett-Packard is on a very public mission to reduce the carbon footprint of its $50 billion supply chain. It's Judy Glazer's job to keep that effort on track.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
Although it's widely assumed that the economic downturn has pushed corporate green initiatives to the back burner, that's not always the case. Take electronics giant Hewlett-Packard, for example. Weak sales haven't deflected HP from its mission of becoming a global environmental leader, reports Judy Glazer, HP's director for global social and environmental responsibility operations. In fact, in HP's case, the slump has had the opposite effect. "In our company by and large," says Glazer, "the impact of the downturn has been that we have really pushed to get to the future faster."
Given HP's track record with environmental programs, that's not hard to understand. Over the years, the company has found that its eco-initiatives frequently bring benefits that go well beyond sustainability. For example, in 2008, HP began shifting freight to more energy-efficient transport modes —from air to ocean and from road to rail —to curb greenhouse gas emissions. That move not only decreased emissions, but also cut transportation costs and reduced HP's exposure to energy pricing volatility. And that's just one example. Glazer reports that HP's distribution network and packaging optimization programs have produced similar returns.
Glazer joined HP in 1989 and has held a variety of supply chain and engineering positions at the electronics concern, which she describes as the world's largest IT company. Today, she oversees programs to implement social and environmental responsibility policy into HP's products and supply chain, from design and materials through manufacturing, distribution, and end of life. This charter includes HP's programs to measure and reduce the carbon footprint of its $50 billion supply chain and implementation of HP's supply chain code of conduct to raise standards in the electronics industry supply chain. It also covers the company's efforts to track and remove potentially harmful materials from HP's products and packaging, as well as efforts to ensure substitutes have reduced environmental and human health impacts.
Glazer holds M.S. and Ph.D. degrees in materials science and engineering from the University of California, Berkeley. She spoke recently with DC VELOCITY Group Editorial Director Mitch Mac Donald about her career at HP, the programs she oversees, and a computer redesign that saved as much metal as was used to build the Eiffel Tower.
Q: Tell us first a little bit about yourself, your background, and how you ended up in your current position.
A: I have worked at Hewlett-Packard for roughly 20 years in a variety of engineering and supply chain functions. My formal training is in engineering —actually in material science and reliability engineering. I held some positions early in my career doing manufacturing process development for what was then cutting-edge electronic assembly processes.
Eventually, I came to lead a central engineering team. As director of that team, I was responsible for launching HP's program to meet a new requirement for electronics hardware —the European Union's Restriction of Hazardous Substances or RoHS directive, which took effect in 2006. It basically required that we change the materials for pretty much every hardware part in our products, certainly every one that had an electronic function. This was a pretty big cross-company initiative that cut across the entire value chain, and it was one of the things that led us to start focusing more on social and environment responsibility in the supply chain.
Q: You oversee programs to implement HP's social and environmental responsibility policy in the company's supply chain operations. What does that involve?
A: We look at it as taking a life-cycle view, starting with the design of the product and the materials used in its construction —both things that we choose to address voluntarily to make the product more environmentally preferable and things we're required to address to meet the laws in various parts of the world controlling the substances that can be in our product. In the manufacturing step, we think about supplier factory practices. We are interested in the labor, safety, environmental, and ethics practices of our suppliers. That has been a major focus of ours for the last seven or eight years and is now one that we engage in with a lot of the industry. The third piece is packaging and distribution, both of which can have a significant environmental impact. The last part is the end-of-life area, ensuring that the products customers return to us for recycling or disposal are properly dealt with. Part of that is making sure any hazardous materials are handled in an environmentally responsible way.
Q: Could you talk a little more about your team's logistics programs?
A: Sure. I have two members of my team who focus on packaging and logistics specifically and all the interaction between the two. Our focus areas include designing packaging to optimize logistics and increase capacity utilization. These programs almost always deliver significant environmental benefits. Examples would be designing a package shape to optimize the number of units that can go in a container, and shifting from wood pallets to reusable plastic pallets —which are lighter —for air shipments.
Then in the logistics domain, we have put quite a bit of work into measuring or approximating the carbon footprint associated with our distribution efforts and looking for opportunities to reduce it. These initiatives tend to deliver pretty significant savings as well.
Q: Have you established metrics so that you can see how the operation is aligning with the goals of greater social and environmental responsibility? And if so, what might some of those metrics be?
A: I think metrics are always a work in progress. However, we have established a number of metrics. We publish many of them externally in our global citizenship report, which we produce on an annual basis and put on our Web site. Some of those metrics include metrics for our own operations, things within our own four walls —things like CO**subscript{2} emissions, water usage, and waste. We have production goals for each of these. We have also measured carbon footprints for our own supply chain as well as those of our first-tier manufacturers. We would like to use those benchmarks, which we have also disclosed, as a basis for setting goals for reducing those footprints.
Q: You are now talking about outside parties —supply chain partners, logistics service providers, and so on?
A: Yes. We also have goals in terms of our suppliers' performance in meeting our labor, health, safety, environmental, and ethics standards. We put a lot of focus on delivering smart practical solutions that make it easy for customers to go green. We have goals around our product portfolio as well.
Q: It seems that just when green initiatives were getting into gear, the global economy crashed. Has it been a challenge the past 12 to 18 months to keep the momentum going while everybody's distracted by the economic downturn and its effects on business?
A: Pretty interesting question. I would say that in our company by and large, the impact of the downturn has been that we have really pushed to get to the future faster. It caused us to accelerate on most of our strategic directions rather than to back off —to really push ahead with changing our business and changing our products, operations, cost structure, or whatever it might be. I think that has been true in this area as well. Our standards have stayed the same. Our customers have continued to focus on this area.
What I would say is that we have probably put more emphasis on those programs that can deliver cost savings as well as an environmental benefit because our customers really need those cost savings and are looking for smart solutions that are good investments for them.
Q: Any closing thoughts or comments?
A: I'd like to mention an award we won from Wal-Mart for a design challenge last year. We won the award for an innovative packaging design that basically let us ship a notebook computer without a box. What the customer took home was a messenger bag containing a notebook computer, with all of its accessories set up inside the bag. It was in a plastic bag with the appropriate bar coding.
Accomplishing that required working really closely with the final manufacturer and also with Wal-Mart to figure out how to actually make that work in everyone's infrastructure. In the end, we delivered for the customer with a 97-percent reduction in packaging. I thought that was a pretty neat illustration of how by pulling together all the pieces in the value chain, you can do something really different.
The way we actually did it was by putting three notebooks into an over-pack. The over-pack never made it to the store shelf. It went right into Wal-Mart's recycling bin. To me, that is a great example of innovation providing a really different kind of solution for the customer and one that illustrates how packaging and logistics professionals can really be right in the center of making an innovation like that happen.
Q: I imagine a lot of Wal-Mart's customers were delighted to find their new computers weren't packed in popcorn or in cardboard boxes that had to be broken down and put in their recycling.
A: I thought it was cool.
Q: So with that one step, you both enhanced a product and service for Wal-Mart's retail customer and achieved some of your own internal objectives.
A: Yes. Because of the size of our company, even small changes can deliver huge benefits. For example, there was one line of PCs that we redesigned to make the units smaller. In the space of a year and a half, we saved as much metal as was used to build the Eiffel Tower.
Q: That is a great illustration of how sometimes even the littlest things can have a very positive and wide-ranging impact.
A: Exactly. I think every company should on the one hand, try to think big and broadly, but on the other hand, not be afraid to pursue specific projects or pilot efforts that may in and of themselves deliver a very large benefit.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”