Supply chain for a better, safer world

AMR Research had something decidedly different to say this year at its annual supply chain conference. But it was something that needed to be said. President Tony Friscia and his fellow analysts—including most prominently in this instance Kevin O'Marah—looked at the often taken-for-granted role of manufacturing and supply chain in providing basic goods to greater numbers of people, and thereby making the world a safer place.

At the conference, they had plenty of help. For one, former President Bill Clinton was on hand to speak eloquently about the work his foundation is doing to integrate third-world countries into the global economy. Often, Clinton said, the challenge isn't about the resources themselves, but rather having the business model and supply chain that delivers a positive result.

In one instance related to health care in developing regions, the former president said, "My contribution has been to help reorganize the supply chain to turn medicines and test equipment provision into a high-volume, low-margin business."

Clinton is a polarizing figure in American politics, but at least some of those in the audience were impressed by his ability to impart the conviction that despite all the impediments, it was still possible to have a process, whether political or economic, that resulted in service to a greater good.

Representatives from some of the world's largest corporations were on hand to discuss the balance they're trying to achieve between doing well and doing good.

Gilles Bouchard, executive VP of global operations for Hewlett-Packard (HP), spoke of the work the company is doing in reducing the environmental impact of its products in terms of design, energy efficiency, materials use, recyclability, and packaging.

Afterward, he said HP's goals were consonant with those of the former President. "President Clinton talked about the lack of infrastructure and the need for logistics. In terms of recycling and social responsibility, we want the same things. And we can bring the capabilities, organization, systems, and infrastructure to bear that can lead to significant changes."

One difference, however, is that the more basic work Clinton spoke of is normally done by governmental and nongovernmental organizations, while a publicly owned corporation like HP must look for that point at which social responsibility delivers a profit.

One area where that point is at hand is in recycling, which Bouchard says is growing 30 percent per year with no sign of slowing down. HP has recycled computer and printer hardware since 1987, and in addition to the millions of products it recycles each year, it collects approximately 2.5 million hardware products each year that are refurbished, resold, or donated.

"Risk management plays a role here too," Bouchard concluded. "When we're looking at health and safety, and at ethics issues, this also is material to the business. Either you're with a branded company, or your company works for a branded company. You have to be aware, you have to take steps, but you have to go one step at a time so as not to create a disadvantage."