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Thursday, July 16, 2009

What is the role of Manufacturing in Sustainable Marketing?

While all stages of marketing need to be examined to achieve a sustainable outcome, looking more closely at manufacturing as a strategy that interconnects product and process design, end to end, is an essential chain in the larger sustainable marketing process. Additionally, as the manufacturing component of a marketing strategy is one if not the ‘dirtiest’ part of the process it is essential that the role of manufacturing in the future as sustainable marketing becomes the norm rather than the exception, be itself sustainable. Steve Skerlos, assistant professor of mechanical engineering at the University of Michigan and principal investigator for that university's Environmental and Sustainable Technology Lab, has said that “The cost savings represented by new green technologies make a compelling business case.”[1] To illustrate his point, he said “the United States consumed two billion gallons of metalworking fluids in 2000. These emulsions of oil, water and stabilizing agents are essential in machining the moving metal parts in automobiles, motors, appliances, compressors, pumps, generators and more. They account for 12 percent of metals manufacturing costs. While the biggest cost is the purchase of these metalworking fluids, disposal costs are also significant.”[2] Through his work at a test plant, Skerlos and his associates were able to develop environmentally friendly vegetable oil substitutes for petroleum-based oils, as well as microfiltration techniques to extend the useful life of these fluids virtually indefinitely. That can save a lot of money, as a large plant can typically spend $2 million a year replacing these fluids. When asked whether sustainable manufacturing solutions will "self-assemble" -- that is, occur through natural market forces. He said: "The business case for sustainability is simple: Add value!"[3] Adding that "green" business efforts, if done right, reduce costs, increase consumers' willingness to pay more, increase market share and ultimately facilitate the development of new products and markets.

Photo by Daniel Suchenski

[1] http://www.stanford.edu/group/AIM/AIMPrograms/EventsArchives/wkshparchives/GreenManuf.html
[2]http://www.stanford.edu /group/AIM/AIMPrograms/EventsArchives/wkshparchives/GreenManuf.html
[3]http://www.stanford.edu%20/group/AIM/AIMPrograms/EventsArchives/wkshparchives/GreenManuf.html

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