Green is Lean: An Inside Look at Sustainable Purchasing at DHL Americas

Wayne Evans, Sr. Vice President for Procurement, the Americas, DHL

In our effort to explore green business issues and the impact sustainability has on organizations’ purchasing patterns, we are proud to interview  Wayne Evans, Senior Vice President for Procurement, the Americas, DHL.  During the interview, Wayne reflected on his team’s commitment to sustainability, and how he and his colleagues have found that green business practices can help save money.  If you have any questions that you would like to submit to Wayne, please let us know.

1.    Could you tell our readers a little bit about DHL and the kind of work you do there?

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 46 billion euros in 2009. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and 300,000 employees worldwide offers customers’ superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

In my role as Head of Procurement for DPDHL Americas I am responsible for purchasing more than $1b of goods and services across 22 countries.  I manage a team of 70 individuals that have buying and sourcing experience in categories such as transportation, fuel, packaging, travel, production equipment, etc.  My day-to-day activities are focused on leading the team, meeting with business partners to understand their needs, and meeting with suppliers to better understand new products in the market.

2.    When did DHL first start talking seriously about green strategies?
DHL has been working on green strategies for many years.  In 2008 the company completed a major initiative designed to baseline the carbon footprint of the Company.  This was a critical step as it established criteria by which we can measure progress against an established goal.

3.    Would DHL pay more for a green-sourced product?
There are many considerations involved in a sourcing decision but in fact it is possible to pay more for a green product.  This can happen as the Total Cost of Ownership (TCO) is factored because initially it might appear that the cost is higher but when you factor the operational costs the product might in fact be lower in cost.  As an example, if we look at the TCO for a truck we may find Vehicle A has a slightly higher cost than vehicle B.  However, the higher-priced vehicle has greater fuel efficiency which is greener and over a period of time the total cost of ownership (TCO) is lower.  In another situation we did make a conscientious decision to buy recycled paper at a slightly higher cost because it is better for the environment.

4.    In which areas does DHL most frequently make green-minded business decisions?
Transportation has the largest impact on our carbon footprint and therefore it is the critical area to focus on.  This is a large part of our business and there are many levers that we can use to reduce the carbon impact.  We are heavily engaged in hybrid vehicles including trucks and we also look for ways to use electric vehicles and even bicycles where possible.

5.    What have been the major trends in green procurement over the last few years?

One of the core goals of procurement is to identify different ways to drive down costs. There are different ways that procurement organizations can combine cost savings with green initiatives.  One example is recycling items such as stretch wrap.  Many companies use a significant amount of this product to package and ship.  In the past during the unpacking process the materials were removed and thrown in dumpsters for disposal.  One of the more recent trends was to add a bailer which is a container used to gather the plastic waste materials and they are picked up by recycling companies who process this material into something like a pallet.  Companies can actually receive money for the used packaging materials and they use less space in dumpsters which lowers the cost of trash pick up.

Procurement professionals are also starting to look at ways to evaluate suppliers with regards to their “greenness”. Based on this evaluation, suppliers will be given credit for being a green company and in close bid situations it could be a deciding factor.

Another trend is demand management, where procurement professionals are getting engaged in minimizing the amount of product needed.  By using only what companies need there will be less waste and less cost.

6.    Can you tell our readers a bit about the GoGreen strategy at DHL?
Our goal is to improve our CO2 efficiency by 30% by 2020, compared to a baseline of our 2007 performance.  To help us monitor our progress towards our 2020 goal, we have set ourselves an interim target to improve the CO2 efficiency of our own operations by 10% by 2010. The ability to calculate our own carbon footprint is a key prerequisite of our GoGreen Program. We need to identify opportunities for reducing our footprint and to track how much we have changed our ways.  We also need the data to offset our GoGreen products and services, and in due course to calculate our customers’ individual footprints.

7.    Do you think the organization thinks about green issues differently since it is based in Germany?
It’s not so much that we think differently but more that we act differently.  Because we are a global company we act in a global way.  When we identify a key strategic initiative such as this it is rolled out across the world and implemented accordingly.  The green movement is a bit more obvious in many parts of Europe as they have been following some of the best practices in conservation for quite some time

8.    What kind of impact has the recession had in shaping or modifying the green strategy at DHL?
The recession has not had much of an impact because as previously mentioned “green is typically lean.”  Some of the projects with longer term ROI and high capital investments could have been impacted as companies were trying to conserve cash flow during the recession.

9.    What kind of difficulties have you faced implementing GoGreen with workforce and management?
Since the green initiative is a CEO-sponsored and lead initiative it has not been difficult getting support.  The only challenges come when there are large capital outlays required without a sufficient business case.

10.    What has been your greatest triumph in implementing the Go Green campaign?

We support four (4) businesses in the US and each is very independent.  We have been successful in pulling them all together and aligning strategies.  We have many projects that were initiated such as recycled paper, hybrid vehicles, alternative lighting, etc.

11.    What has been the biggest struggle or challenge in implementation?
In some cases it is not always easy to make clear sourcing decisions based on the supplier’s “greenness” as there are no real standards for accurately rating a supplier.

12.    Could you highlight a few examples of unique contributions DHL has made in the area of sustainability?

Presentation Available from Target Marketing “Green Marketing Without Greenwashing” Webinar

I had the privilege of serving as a panelist this spring on a webinar put together by Target Marketing Magazine, titled,  “Green Marketing Without Greenwashing – How to legally and ethically back up your environmental claims.” I spoke alongside an excellent group of panelists who covered a wide range of key issues related to green marketing [they included Scot Case, Vice President, TerraChoice; Randi W. Singer, Litigation Partner, Weil, Gotshal & Manges; Rick Merdan, Marketing Strategy Manager – Environmental, NewPage Corporation].

Target Marketing has posted the presentation online with the slides and audio.  Please enjoy!

In addition, here’s a link to a blog post I wrote in April with some notes I took on Case and Singer’s remarks.

Green Tips for Marketing Success: Part 1 of 4

My firm, Grossman Marketing Group, put together our 100 Tips for Marketing Success earlier this year to mark our 100th anniversary.  Over the last century, we have learned a lot about what helps make our customers look good, so we thought we’d share what we’ve learned.

21 of the 100 tips involve sustainability, and over the next few months, I’ll be sharing these with you, by category.  If you’d like to download the complete set of 100 tips, please click here.  They are free! The four categories covered in the “green” section are 1) General Sustainability, 2) Green Promotional Products, 3) Green Design, 4) Green Printing.  I’ll get started with the General Sustainability tips.

Research shows that Americans want to work for, buy from, and donate to organizations that make significant and sustained efforts to address environmental issues.

  1. Sustainability can help you cut costs as well as build sales. We have experienced both at GMG and are happy to help you do the same at your organization. To learn more, just contact Ben Grossman at 617.591.2919 or bgrossman [at] grossmanmarketing [dot] com.
  2. Be transparent about green marketing claims—make sure they are verifiable by an independent, third party.
  3. Include your colleagues in your sustainability efforts; often the best ideas come from the bottom up, rather than from the top down!
  4. Spread the word about the sustainability efforts your organization is taking. Your customers, investors and colleagues care.
  5. Simple changes in your office can have a huge impact: use energy efficient light bulbs and put recycling bins at every desk. We encourage our colleagues to bring in old batteries, light bulbs and other household materials to be recycled for free.
  6. Employee education is key—sustainability must be part of the company culture. If so, it is much easier to implement (and less likely to be cut).
  7. Make sure to back up your green marketing efforts with truly sustainable business practices throughout your organization.

I hope you find these helpful.  We’ll be back to you later this summer with more!  Many thanks for reading!

Whole Foods/Cork ReHarvest Partnership: A Best Practice in Product Lifecycle Management

Image courtesy of Whole Story - the official Whole Foods Market blog.

Earlier this spring, Whole Foods Market and Cork ReHarvest announced a partnership to allow Whole Foods customers to leave wine corks in drop boxes in all Whole Foods stores in the United States, Canada and the United Kingdomto be recycled.  This is an interesting program with a great focus on the lifecycle of products.

Although many people recycle cans, bottles and newspapers, too many other products slip through the cracks and end up in landfills.  I have written in the past that all products that cannot be recycled in towns and municipalities at curbside should come with instructions on how to responsibly be disposed of when finished.  Whether this includes empty toothpaste tubes or laptops, it is important for companies to not only focus on the green marketing message at time of sale, but also the environmental considerations at the end of the product’s lifecycle.

Whole Foods has been an industry pacesetter for some time, having announced a partnership with Preserve in early 2009 to allow customers to bring in hard-to-recycle #5 plastic to stores to be recycled.  This includes Brita filters, which too often find the trash after two months use.  Here is some additional coverage on the Whole Foods blog from April 2010.

My firm, Grossman Marketing Group, also tries to do its part by not only using environmentally-friendly products but also allowing our employees to bring in used lightbulbs (CFL), batteries and paint from home to be recycled.

Consumer goods and electronics companies have a long way to go to ensure that their customers know the facts about what to do with their products when they are finished using them.  However, these partnerships that companies like Whole Foods have created are an encouraging step – and probably a very good way to continue to build their brand and encourage store foot traffic at the same time!

Proctor & Gamble’s Green Scorecard to Include Media and Marketing Firms

In a wake-up call for marketing services firms, Proctor & Gamble Co. unveiled its Supplier Environmental Sustainability Scorecard earlier this month, and, as Ad Age wrote, “neither advertising agencies nor media companies appear to be off the hook.”

The environmental measures include:

  • Energy usage
  • Waste disposal, reduction and recycling
  • Environmental regulatory compliance factors

Also of note is that P&G is providing extra points on the scale (from 1-5, with 5 being the best) to firms that provide sustainability ideas.

The scorecard will initially be rolled out to 400 suppliers throughout P&G’s entire supply chain.

The key takeaway from this news report is the increasing movement of large companies to reward suppliers for green business practices at the expense of competitors who have not demonstrated environmental leadership.  The message is clear: cut your carbon footprint, or you will see your revenues cut.  This is a sure sign that sustainability goes hand-in-hand with profitability.

Here’s a link to the article in Ad Age.

Report from Target Marketing “Green Marketing Without Greenwashing” Webinar

I had the opportunity to serve as a panelist last week in Target Marketing Magazine’s webinar, “Green Marketing Without Greenwashing – How to legally and ethically back up your environmental claims.” I spoke alongside an excellent group of panelists who covered a wide range of key issues around green marketing [they included Scot Case, Vice President, TerraChoice; Randi W. Singer, Litigation Partner, Weil, Gotshal & Manges; Rick Merdan, Marketing Strategy Manager – Environmental, NewPage Corporation].

Here’s a link to access the webinar and watch it.

Below please find some notes I took on Case and Singer’s remarks.  Merdan served as a resource to answer questions near the end.


Scott Case, Vice President, TerraChoice

  • Discussed growth of green products and claims in the marketplace
  • Covered environmental claims and how the FTC is investigating and enforcing their regulations to counter questionable environmental claims
  • Defined greenwashing as misleading consumers about the environmental details of a product or service
  • Terrachoice has developed 7 Sins of Greenwashing
  • Discussed various leading green labels (EcoLogo, Energy Star, Green Seal)
  • Suggested do’s and don’ts of green marketing. His key suggestion was one I strongly agree with and advocate – “If you’re making a public claim, provide public proof”


Randi Singer, Litigation Partner with Weil, Gotshal & Menges

  • First rule of advertising is that it needs to be true
  • Discussed FTC’s “Green Guides”
  • All claims must be specific, transparent, supported by science
  • Need to avoid general environmental benefit claims
  • Specific claims must be true and not deceptive (e.g. “Biodegradable” must completely break down and return to nature in reasonably short period of time; “Recyclable” must be able to be collected and reused)
  • FTC has been reworking their Green Guides for several years, held 3 workshops in 2008 (1st focused on carbon offsets and RECs, 2nd focused on green packaging claims, 3rd on buildings and textiles)
  • Expects new Green Guides to be released in 2010

Q&A – Excellent session – starting at around the 45-minute mark, covering some of the following topics:

  • Supplier verification
  • Paper choices

I hope you enjoy the webinar!