As a established, systematic means of managing across corporate functions, S&OP offers "an easy conduit for bringing in sustainability," says Leahu-Aluas. The introduction of carbon management, however, forces companies to broaden their view of the systems and processes that impact the ecosystem.
A good place to start, according to Leahu-Aluas, is the area of cost. S&OP is already geared toward reducing corporate expense, especially on the supply side. Companies can broaden their view of suppliers by adding carbon emissions to the metric of material costs. On the demand side, the design of "green" products can open up new avenues of revenue throughout an item's lifecycle. "That's an easy entry for sustainability," she says.
Cost and sustainability don't always mesh; a decision to pursue the latter can be more expensive up front. In such cases, Leahu-Aluas says, companies need to take the long view. "The majority is talking about sustainability as the next major wave of development, and a way of exiting this crisis," she notes. "I don't think we'll fall back to producing under the economic model of the last 30 years." On the contrary, SCOP could create a new model for sustainable manufacturing in the U.S.
SCOP also touches on the critical issue of managing supply-chain risk. In fact, says Leahu-Aluas, "I see it as a perfect link." Companies with a good SCOP process, especially on the environmental side, are already engaging in good risk management.
