carpet to coats: reducing waste & helping humanity tom norris, al renner, edward taylor 1

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Carpet to Coats:Reducing Waste & Helping Humanity

Tom Norris, Al Renner, Edward Taylor

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Agenda

• Abstract: Al• Company Profile: Edward• Developing TBL Framework: Edward• Sustainability Deployment: Tom• Outcomes & Impacts: Al• Ongoing Sustainability Practices: Edward• Challenges & Opportunities: Tom• Local & National Impact: Al• Audit Instrument: Tom• Income Statement: Edward• Balance Sheet: Tom

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Abstract

• Non-profit organization• Nylon coats from recycled carpet• 5.9 billion lbs carpet discarded 2009• 96% in landfills; 4% recycled• Markets – charities, govt. agencies, retail• Addresses TBL – Planet, People, Profit• Start Up Cost $ 3 million• 80/20 plan for start up capital

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Company Profile

• Location• Building specifications and cost• 6 Business processes• Key elements of manufacturing process

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Developing TBL Framework

• The three founders of Carpet to Coats strongly believe that the true purpose of business extends beyond just making a profit

• established five functional priorities: – (1) to receive the carpet recycler’s raw materials– (2) to make durable and functional coats – (3) to distribute the final product to various retailers and

non-profit organizations – (4) to increase the number of domestic carpet donators– (5) to solicit contributions from public and private investors

who want support our business

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Sustainability Deployment

• Each department will be assigned a liaison responsibility for SMS initiatives (includes outsourced services)

• Ensure a minimal impact to the environment during all processes

• Improve internal and external social conditions• Bring economic growth to our supplier and the

surrounding community

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SMS Environmental

Department Activity Aspect Impact Significance

Logistics Community Involvement Find ways to obtain community used carpet

Reduce carpet in landfills 35

Accounting Transactions & Record Keeping

Review regulations to determine valid electronic methods

Reduce the use of paper 30

Operations Work Flow Analysis Observe work patterns and implement efficient SOP's

Minimize energy usage 30

Logistics Shipping and Receiving Research & Implement efficient shipping methods

Reduce fossil fuel usage 25

Logistics Shipping and Receiving Research & Implement efficient shipping methods

Reduce Maintenance costs 30

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SMS Social


SMS Board Renovating the facilities

Research & Implement energy savings and recycled materials during facility renovations

Minimize energy usage 35

Marketing Community Involvement Increase awareness of carpet recycling

Reduce carpet in landfills 30

Marketing Public Relations Influence public about our product Increase sales 25

HR Employee Recruiting Offer opportunities for employee growth

Improve skills of employees 25

HR Employee Retention Implement programs to keep employees with company

Increase productivity 30

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SMS Economic

• Implementing the Environmental and Social aspects will also bring Economic benefit such as:– Employee retention and recruiting

• Reduces training costs & increase productivity.• Passionate employees

– Reduced costs of shipping– Increased job opportunities


Sales Sales Promote any special incentives to government agencies that purchase our product Increase sales 35

Sales Sales Promote any special incentives to national retailers Increase sales 30

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SMS Action Plan

Department Aspect Category Objective Targets

Logistics

Find ways to obtain community used carpet Environmental

Offer community carpet recycling area

Receive and ship carpet to Shaw’s

Accounting

Review regulations to determine valid electronic methods Environmental

Choose a system that meets regulatory rule that eliminates need for paper Choose proper system

Operations

Observe work patterns and implement efficient SOP's Environmental

Conduct Work-Flow Analysis Reduce energy usage

Logistics

Research & Implement efficient shipping methods Environmental

Minimize usage of Gasoline/Diesel while meeting customer's needs

Implement a shipping and receiving system using clean alternatives

Logistics

Research & Implement efficient shipping methods

Environmental & Economic

Implement system with minimal maintenance costs

Find most effective shipping procedures. Consider external sources of transportation.

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SMS Action Plan (Cont)


SMS Board

Research & Implement energy savings and recycled materials during facility renovations

Social & Environmental

Reduce energy usage while gaining functional improvements

Obtain at least 15% savings with renovations.

Marketing Increase awareness of carpet recycling


Introduce owners of major buildings (casinos, schools, hotels) of the Evergreen program

Get an agreement with 50% of companies contacted to join Evergreen program within 18 months

Marketing Influence public about our product


Implement on-line campaign of Carpet to Coats mission

Establish an online presence through social networks, YouTube®, and a company website

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SMS Action Plan (Cont)


HR

Offer opportunities for employee growth Social & Economical

Employee recruiting from local colleges

Establish relationship with local colleges

HR

Implement programs to keep employees with company Social & Economical

Employee retention program

The board should also look for ways to keep employees such as reward programs and longtime employee incentive

Sales

Promote any special incentives to government agencies that purchase our product

Economical & Environmental

Promote any special incentives to government agencies that purchase our product

Be in contract with at least 20 government customers in 18 months

Sales

Promote any special incentives to national retailers

Economical & Environmental

Promote any special incentives to national retailers

Be in contract with at least 2 national retailers in 18 months

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Outcomes & Impacts

• Operations Personnel Management– Carpet donation on site encourages recycling– Diverting 600,000 lbs of carpet from landfill/year– Package Flow Tech for delivery routes

• Personnel Management– Lost work time reduced 20% via health & safety– Communicate sustainability commitment to

employees– Environmentally friendly admin processes

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Outcomes & Impacts

• Supplier – Shaw’s Evergreen Nylon Recycling– Evergreen carpet reclamation program– CARE awards for recycling innovation– Has reclaimed 300 million pounds of post-

consumer carpet since 2006• Stakeholders– CARE effort has three interlinked goals– Charity customers improve People aspect of TBL

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Ongoing Sustainability Practices

• Integration into business processes • Integration into compensation and

performance management • Employee buy-in

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Challenges & Opportunities

• Increased costs upfront & additional costs to maintain sustainability.– Managers examining the workflow for operations

• Training.– SMS team– Employees must understand our SMS policy,– SMS audit team

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• Employees must be convinced that it is a worthwhile strategy. – Employees must embrace the culture of sustainability

• Consumer’s preference– Some customers may wonder if the coat is free of

undesired material.

– consumers tend to view sustainable products high in ethicality, but may think the product lacks the performance of normal produced goods

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• Ahead of any possible environmental legislation passed here or internationally. – Reduced disruptions to business

• Partnership with Shaw's Evergreen Nylon Recycling will give a strong foundation to implement our own sustainability program. – Their example and experience will certainly give us

some key insights for implementing sustainability in the manufacturing industry.

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• Our community used carpet recovery site– Surrounding businesses can donate their used carpet at

our location instead of the landfill. – Financially beneficial for them as they can possibly avoid

landfill fees.

• Marketing ability. – Our SMS could enable us to increase sales to federal,

state, and/or city services that have a green purchasing initiative.

– Retailers that have green conscience customers.

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Local & National Impact

• Sustainability - Labor & Human Rights – HR policies provide labor rights per United Nations– Clean safe working conditions– Competitive wages & benefits/incentives

• Sustainability – Environmental Principles– 1st priority is environmental aspect of TBL– Intergenerational equity via reducing carpet waste

stream– Managing economic growth to be green

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Audit Instrument

Environmental Aspects

Aspects

(1) Unsatisfactory

(2) Somewhat unsatisfactory

(3) Satisfactory

(4) Slightly above

Satisfactory

(5) Exceedingly Satisfactory

Amount of carpet donated (in lbs.)

Decrease in amount of wattage consumed per month

Use of low power computers and equipment

Amount of recycled paper

Methods of work processes most efficient

Use of fuel efficient shipping methods

Amount of used carpet diverted from landfills

Amount of water consumption

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Audit Instrument (Cont.)

Social Aspects

Aspects

(1) Unsatisfactory


(3) Satisfactory

(4) Slightly above

Satisfactory


Amount of participants in Evergreen

Number of YouTube visitors

Number of Facebook Fans

Employees from College outreach

Employee Turnover rate

Regular offering of educational opportunities relating to employee satisfaction

Regular offering of educational opportunities relating to eco-friendly behaviors

Number of employees involved in volunteer activities

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Economic Aspects

Aspects

(1) Unsatisfactory


(3) Satisfactory

(4) Slightly above

Satisfactory


Amount of government customers

Amount of sales of national retailers

Amount of sales to non-profit

Savings from renovation projects

Amount of grant dollars

Cost of shipping

Impact (productivity)of employee turnover rate

Promotion of sustainability of product

Amount paid in bonus pay

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Review Objectives and Targets

Objective Targets Current Progress Comments

Offer community carpet donation area Receive and ship carpet to Shaw’s Click here to enter text. Click here to enter text.

Choose a system that meets regulatory rule that eliminates need for paper Choose proper system Click here to enter text. Click here to enter text.

Conduct Work-Flow Analysis Reduce energy usage Click here to enter text. Click here to enter text.

Minimize usage of Gasoline/Diesel while meeting customer's needs

Implement a shipping and receiving system using clean alternatives Click here to enter text. Click here to enter text.

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2011 2012 2013Revenue

Sales 1,200.00$ 1,260.00$ 1,348.20$ Cost of Goods Sold 261.42$ 274.49$ 293.71$

Gross Revenue 938.58$ 985.51$ 1,054.49$

Expenses

Contracted Services from 360° Inc 50.00$ 50.00$ 50.00$ Salary & Benefits 242.35$ 247.45$ 254.60$ Utilities & Shipping 91.80$ 90.96$ 90.13$ Depreciation 26.81$ 26.81$ 26.81$ Selling, General, & Administrative 240.00$ 252.00$ 269.64$

Total Expenses 650.96$ 667.22$ 691.18$

Gross Profit 287.62$ 318.29$ 363.31$

Operating Income 260.81$ 291.48$ 336.50$ Interest 37.25$ 36.68$ 36.09$ Earnings before Taxes 223.56$ 254.79$ 300.41$ Dividends 42.00$ 44.10$ 47.19$ Taxes -$ -$ -$ Net Income 181.56$ 210.69$ 253.23$

Carpet to CoatsIncome Statement

For Year Ending (in thousands $)

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AssetsCurrent Assets

Cash 23.83$ Accounts Receivable 350.00$ Inventory 11.90$ Prepaid Expenses 9.18$

Fixed AssetsLand 200.00$ Building 800.00$

Less Accumulated Depreciation (16.67)$ Equipment 125.80$

Less Accumulated Depreciation (10.14)$

Total Assets 1,493.90$

Liabilities and Owner's EquityCurrent LiabilitiesShort-Team Loan $200.00Unearned Revenue 10.00$ Non-Current LiabilitiesLoans Payable 738.94$

Owners' EquityRetained Earnings 544.96$

Total Liabilities & O.E. 1,493.90$

Carpet to CoatsBalance Sheet

As of December 31, 2011 (in thousands $)

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As of December 31, 2012 (in thousands $)

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As of December 31, 2013(in thousands $)

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Questions?

carpet to coats: reducing waste & helping humanity tom norris, al renner, edward taylor 1

Documents

lbs carpet

lbs of carpet

founders of carpet

functional coats

sms initiatives

coats x

sms action plan cont12

sms action plan cont11