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How Nestlé reduced its energy use by 36% per tonne of product

This video explains the £1.9B p.a. energy saving opportunity available to UK manufacturers and how Nestlé has made substantial energy efficiency improvements. Despite ongoing improvements in energy use, the Next Manufacturing Revolution study* identified Energy Efficiency as a major opportunity for UK manufacturers worth: £1.9B p.a. in cost savings 19.2 MtCO2e in greenhouse gas emission savings 3,500 new skilled full time jobs This video describes: How leading companies have saved up to 70% of their energy use through four different types of energy efficiency initiatives How Nestlé has reduced its energy use by 36% per tonne of product since 2006 in UK and Ireland plants, with more savings on the way. * The Next Manufacturing Revolution study available here was co-authored by Lavery/Pennell, the University of Cambridge’s Institute for Manufacturing and...

Radical Strategy: Disrupt before you are disrupted

The traditional response to earnings downturns is to hunker down and defend the status quo. But if the downturn is caused by a structural disruption this is the wrong response. This discussion presents a better response that finds opportunities within challenges – and describes what it takes to capture them. How does your company respond to a downturn in earnings? The traditional approach is to reduce headcount (often middle management), shrink non-operating spending, reinvest some savings in advertising and exhort the salesforce to sell more great product; e.g. Coca Cola, late February 2014. But what if the downturn has been caused by a growing trend that will eventually undermine your business (i.e. a structural disruption)? Then the traditional response to an earnings dip is unhelpful – cutting the company’s ability to respond to a disruption and reinforcing the company’s commitment to the current course. Instead, when these sorts of disruptions occur (and ideally before), it is time for open-mindedness to new ideas and allocation of resources to respond with a better business model. We call this sort of step-out thinking ‘Radical Strategy’ because it steps beyond the incremental improvements/optimisation of the existing business model – where most corporate strategy work is focused. Consider some of the disruptive business model types that are emerging – and which are very difficult to answer by optimising existing approaches: Distributed production – local production of raw materials including food and energy – e.g. farmers markets; rooftop solar photovoltaics Peer to peer networks – directly connecting producers/providers and customers/users cutting out the ‘middleman’- e.g. Zopa Product aggregation and comparison – Where comparable products are...

The Drivers and Benefits of Resource Efficiency

At the recent Industrial Sustainability conference held at the University of Cambridge, Lavery Pennell joined a range of leading companies, including Marks & Spencer and Toyota, highlighting the benefits to be gained from taking a proactive approach to sustainability. Lavery Pennell presented on the drivers and benefits of non-labour resource productivity. The video of the presentation is below. Highlights of the video include: Untapped opportunities for resource efficiency within a company’s operations and supply chain The value of these in terms of greater profits (average 12% increase), new jobs (over 300,000 in the UK) and environmental benefits (including 4.5% of the UK’s total annual GHG output) The performance of a range of companies including Coca Cola, Toyota, Unilever, P&G, Pepsico, Komatsu, General Mills and ST Microelectronics Variability of performance between companies, even in the same sub-sector How to capture the benefits available Read more about and download the Next Manufacturing Revolution...

Next Manufacturing Revolution report launch

Lavery Pennell has been working with the University of Cambridge’s Institute for Manufacturing and 2degrees to accelerate non-labour resource efficiency in the manufacturing sector – i.e. the Next Manufacturing Revolution. Together we recently launched a landmark report and programme of action to capture the £10 billion p.a. in profits, 300,000 jobs and 27MtCO2e p.a. greenhouse gas reduction that are available from non-labour resource productivity. The video below shows the highlights of the launch at Parliament House. See what  Toyota, Caterpillar, Nestle, Coca Cola Enterprises, Minister Gregory Barker and Professor Steve Evans say about the Next Manufacturing Revolution and the non-labour resource efficiency opportunities that it offers. Click to download the Next Manufacturing Revolution...

The Next Manufacturing Revolution

The Next Manufacturing Revolution (NMR) is a collaboration between Lavery Pennell, the University of Cambridge’s Institute for Manufacturing and 2degrees to accelerate manufacturing improvements in non-labour resource productivity to realise the available benefits in profits, jobs and environmental sustainability. Lavery Pennell was lead author for the NMR report which quantifies the significant untapped opportunities for UK manufacturing from non-labour resource efficiency and outlines a programme of action to address the barriers to uptake. The report summarises 12 months of research examining resource efficiency performance compared to international good practice for each sub-sector. It found that while many UK manufacturers have achieved 10 to 15% efficiency gains over the last decade, leading companies have achieved over 50% improvements in the same timeframe. All manufacturing companies were found to have room for improvement: Significant variation in non-labour resource performance was observed between companies within each manufacturing sub-sector. Four types of improvement were identified which are rarely all fully utilised: incremental improvement, process and system improvement, structural change and core redesign. Even leading companies are performing inconsistently across the resource efficiency topics examined of circular resource use, transport efficiency, energy efficiency, packaging optimisation, supply chain collaboration and resource efficient product & business model innovation. The opportunity was conservatively calculated to be worth £10 billion p.a. in additional profits for UK manufacturers, to create 300,000 new jobs and to reduce CO2e emissions by 24% for the UK manufacturing sector (4.5% of UK’s total annual emissions). Wider benefits from the programme also accrue to communities including indirect jobs, greater tax revenues and an improved environment. You can download the full report here and read more about NMR...