Triple Bottom Line Collaborative-Illustrations of Efforts

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Triple Bottom Line Collaborative-Illustrations of
Efforts

• Dennis West
• Northern Initiatives
• Marquette, Michigan
• dwest_at_niupnorth.org
• www.niupnorth.org

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Three Illustrations of Application of the Triple
Bottom Line

• Manufacturing
• Regional Sustainability
• Health Care

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Jacquart Fabric Products
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Jacquart Fabric Products

• Cut and Sew Manufacturer
• Primary Product Pet Beds
• Initial issue Working Capital and Accounting
• Transformation
• Just In Time
• Modernization of Equipment

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Jacquart Fabric Product Results

• Substantial Reduction in Inventory
• Lower re-work, elimination of racks, savings of
  capital
• Substantial Reduction in Working Capital
• Dollars could be invested in new equipment versus
  the financing of inventory
• Increase in Ability to offer more Fabric Styles
  with Improved Quality
• Increased ability to offer more styles more
  colors more patterns
• Move from mass market to mass customization,
  reduction in waste and re-Work
• Re-theme profit result
• Profits assured through speed of delivery,
  minimization of work in progress and finished
  goods inventory

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Jacquart Fabric Products TBL Results

• Economy
• Growing sales for expanding business
• Has grown to over 150 employees
• Equity
• Company offering jobs in a community that has
  lost people for 30 years, in one of Michigans
  poorest counties with benefits!
• Environment
• Reduction of inventory meant less space to heat,
  light, etc
• Elimination of waste (reduction of re-work) and
  process that do not result in sales
• Permanently defining waste in the company as
  anything that does not bring value to the
  customer

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www.greatwaters.net
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• Extend Nature Tourism
• Build Driving Trails to bring people to places
  and communities that extended stays and broaden
  experiences
• Extend Regional Identity for sake of helping
  small businesses to build packages
• Incorporate environmental preservation

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• Results
• Economy
• 1,550,000 web site hits in 2007
• UP made Sherman Travels 10 best summer
  destinations in the world in 2006 and the
  Weather Channels top 10 American Winter
• Equity
• Exceptional Market Access for small rural
  communities and the businesses that reside there
  such as Germfask, DeTour, Cedarville, Cut River,
  etc
• Environment
• Doing Our Part Campaign
• Volunteer Watershed Projects
• More Feet on the Ground

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Health Care Illustration

• Service Industries now represent two thirds of
  the largest employers in the UP
• Searching for the Social Entrepreneurs those who
  lead service and not profit organizations and
  want to make change

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CURRENT STATE AKA CLUSTER ...
Identified areas of waste, necessary (regulatory
waste) and value added services. Then grouped
activities and problem solved solutions to waste
WASTE
Regulatory waste
Value Added (to customer)
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Sort Phase

• Anticipate 25 decrease in inventory carrying
  costs for supply stock
• Time savings associated with counting/replacing
  decreased inventory
• Financial Implications of linen storage
• 9.2 Million lost in revenue due to shut down
• 4.4 Million in continued operation expenses

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Health Care Results

• Economy
• Critical part of rural economy and under pressure
  due to diminishing reimbursement rates
• Cost savings of 4mm in inventory
• Equity
• Customers (tax payers) should not pay for waste
• Environment
• Reduction in inventory, reduction in purchasing
  unnecessary linen
• With organization less use of water, and
  organization supports efficient in finding what
  is needed in a timely way

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Conclusion

• Triple Bottom Line is
• A matter of competitiveness for our firms
• Planet preservation
• Opportunity for community building, liberation of
  ideas and savings
• Sound business approach
• No one wants to pay for waste and
• We can eliminate things before they ever enter
  into the waste stream