April 10, 2012 // By: Susan Galer // Danone Serves Up a More Sustainable Future
In a resource-constrained world where consumers want to make better choices, both companies know sustainability is not only about conservation or recycling. Real change can only occur by taking a measured business approach to determine the cost of materials and products across the supply chain, from sourcing to production to delivery and beyond.
As a result, Danone implemented SAP BusinessObjects solutions to collect, measure, analyze, and reduce its carbon footprint across its entire 35,000 product line. Relying on SAP BusinessObjects Profitability and Cost Management, SAP BusinessObjects Financial Information Management, and SAP BusinessObjects Data Services, the process captures highly detailed, monthly assessments of its product line by SKU across the entire lifecycle, from sourcing through production, transport, retail distribution, consumption, and end of cycle. Full integration with SAP ERP allows Danone to automatically retrieve information including bills of materials, production and delivery orders, and intercompany transportation. Danone can easily assess a range of product footprints, and incorporate allocation of emissions and costs generated by each process.
These SAP software solutions have fundamentally changed not only the way Danone does business, but also how employees think, work, and engage with the company. Employees have a deeper sense of pride in their work since every staff member is held accountable for the quality of carbon data in their business area. Specialists in lifecycle management collect and assess information from the supply chain, such as site-specific emission factors for components used during the raw-pack process. People with job titles like Carbon Master and Master Data Manager, along with users in manufacturing, purchasing, and transport units, provide additional input for things like emissions factors by transport types or energy consumption to complete the process. Teams perform calculations for insight and visibility into the carbon measurements at a product level via multi-dimensional modeling and analysis. Using SAP software reports and dashboards, employees can display the product carbon footprint intensity as grams of carbon dioxide equivalent (CO₂e) per kilogram or liter of product, as well as in absolute terms of metric tons of CO₂e emissions.
Next page: Danone’s plans for a more sustainable future