PCR Credit: Compact Commodity/Output Supply Chain 

(1-3 Points, Reciprocal)

Credit Summary

PCR Credit: Compact Commodity/Output Supply Chain aims to maximize local environmental and economic benefits and minimize environmental footprint through compact and transparent supply chains.The utilization of supply chains has been proven to enhance the efficiency of work. Using supply chains in this case scenario will maximize local environmental and economic benefits and minimize environmental footprint.

Impact Summary

Implementing supply chain technology allows for businesses to cut delivery time, distance, and eventually cost. It is simply a more efficient way of managing output. Additionally, a sustainable supply chain allows for more sustainable partnerships, ligitizimizes operations, and improves reputation.1 

Submittal Summary

Local governments and industries must demonstrate that 80 percent or more of outputs from material recovery and organics processing facilities are sold and/or utilized within 2,000 miles or demonstrate that carbon emissions per ton-mile of material shipped is less than 150 lb. CO2/ton-mile. Output percentages and distance decrease higher tiers are reached. See below for more details. Potential strategies include identifying local demand for processed materials, developing marketing programs that emphasize local use, and utilizing efficient, low carbon intensity transportation modes.

Case Study and Benefits

Supply Chain Minded has numerous examples on their website on how supply chains have benefited the efficiency, cost, and organization of certain companies output operations, especially when dealing with the consumer goods market. Coca-Cola is an example of how utilizing supply chain technology can provide these various benefits. In order to manage the 2.4 millions delivery points along with the 430 distribution centers, Coca-Cola used a vehicle routing software in order to streamline their products. This allows them to cut time, distance, and eventually cost of their delivery. 

Intent and Requirements

Intent

To maximize local environmental and economic benefits and minimize environmental footprint through compact and transparent supply chains.

Local Government and Industry Requirements

Tier 1: (1 point)

Demonstrate that 80 percent or more of outputs from material recovery and organics processing facilities are sold and/or utilized within 2,000 miles or demonstrate that carbon emissions per ton-mile of material shipped is less than 150 lb. CO2/ton-mile.

Tier 2: (+1 point)

Demonstrate that 50 percent or more of outputs from material recovery and organics processing facilities are sold and/or utilized within 500 miles or demonstrate that carbon emissions per ton-mile of material shipped is less than 90 lb. CO2/ton-mile.

Tier 3: (+1 point)

Demonstrate that 25 percent or more of outputs from material recovery and organics processing facilities are sold and/or utilized within 100 miles or demonstrate that carbon emissions per ton-mile of material shipped is less than 60 lb. CO2/ton-mile.

Potential Strategies:

• Work with your broker to identify local demand for processed materials,
• Develop marketing programs that emphasize local use.
• Utilize efficient, low carbon intensity transportation modes.

Why We Care

How to Meet the Requirements

To meet this requirement, Local Governments and Industry Leaders will need to provide information proving that they fall under either tier 1, 2 or 3 regarding output supply chain. This can be completed by requesting data from local delivery and PCR services. 

Required Documentation

Case Studies & In-Depth Information

Supply Chain Minded has numerous examples on their website on how supply chains have benefited the efficiency, cost, and organization of certain companies output operations, especially when dealing with the consumer goods market. Coca-Cola is one strong example of how utilizing supply chain technology can provide these various benefits. In order to manage the 2.4 millions delivery points along with the 430 distribution centers, Coca-Cola used a vehicle routing software in order to streamline their products. This allows them to cut time, distance, and eventually cost of their delivery. 

Referenced Standards

Definitions

Broker

Investopedia Definition: A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.

Compact Commodity 

Refers to a market item that can be bought and sold but which is part of an optimized, efficient supply chain that utilizes local markets.