Part 1 Better, Faster, Cheaper…Greener

Sustainability is very much a headline in B2C. But we don’t hear
much on the subject in B2B. Is it happening? What are the
motivators for B2B businesses going green? And what are the
consequences of ‘wait and see’?

In the world of B2C, consumers form bonds with brands that
deliver emotional benefits like security, smarts, and sex
appeal.

In the world of B2B, there is a bond of trust between buyer and
seller, but the product itself is scrutinized under the harsh light
of performance. Is it better, faster, cheaper?

And more and more, is it greener?

How did sustainability make it to this top tier of B2B purchase
considerations? To understand that, we can begin by looking at the
profound shift to green in B2C.

Ignore Consumers at Your Peril

Today’s consumers have more power over
brands than ever before. Armed with new media and teamed with
NGO’s, they’re forcing profound changes in the supply
chain.

Consider Greenpeace’s social media campaign against
unsustainably sourced palm oil in Kit Kat bars. The campaign
featured a grisly video href=”http://vimeo.com/10236827”>http://vimeo.com/10236827 that
got more than 1.5 million views (even after Nestle had it yanked
from Youtube). The video sparked an avalanche of rage, and led to a
protest at href=”http://www.greenpeace.org/international/en/news/features/Sweet-success-for-Kit-Kat-campaign/”
target=”_blank”>Nestle’s AGM in April 2010.

Less than a month after the AGM, Nestle ruled that suppliers -
including global giant Cargill - could no longer provide palm oil
from unsustainable sources.

What does this mean? The traditional B2B bias of ‘consumers
aren’t sophisticated enough to understand or care about what we do’
is dangerously out of date.



GREEN = GREEN

Robert Safrata is CEO of target=”_blank”>Novex Delivery Solutions, a courier company
that boasts a fleet of electric, hybrid and natural gas
vehicles.

Safrata doesn’t believe greener can be separated from faster,
better, cheaper. “Greener is cheaper. The really good companies are
figuring this out. And there’s lots of low-hanging fruit for them
to pick.”

At Novex, the fruits of green are radically higher staff
retention, and contracts with clients who need green suppliers to
meet their corporate mandate.

“Greener is cheaper. The really
good companies are figuring this out. And there’s lots of
low-hanging fruit for them to pick.”

Guy McAree of Ballard Power Systems agrees that sustainability
needs to be smart business first.

“We’re putting our zero-emission fuel cells to work, for
instance, in systems used in forklift trucks. href=”http://www.ballard.com/Motive_Power/Materials_Handling_Fuel_Cells/Application_Overview.htm”
target=”_blank”>Walmart, Coke, BMW and other distribution
center operators are deploying these clean energy systems because
they outperform lead-acid batteries … plus, battery storage space
can be freed up.”

Fence Sitters Beware

The green B2B mandate is here. And it’s spreading through the
entire supply chain.

Honda, for example, just announced href=”http://www.greenbiz.com/news/2011/01/14/honda-takes-green-purchasing-guide-global?utm_source=GreenBuzz&utm_campaign=d470903212-GreenBuzz-2011-01-18&utm_medium=email”
target=”_blank”>purchasing guidelines that “… allow better
tracking of emissions and other impacts of products further back in
their lifecycles, beyond primary suppliers.”

The guidelines will be implemented worldwide, and expand from
the environmental impacts of production to all corporate
activities. So whether you supply fan belts or stationery to the
automaker, your operation will come under the green microscope.

Where Do I Start?

Green is becoming as important as better, faster, cheaper. But
it needs to be implemented strategically to be profitable.

For that reason, green can’t come without a business value
proposition - for yourself, and for your clients. It needs to be
considered a strategic issue, and be planned for your company with
an eye on profit and competitive advantage.

Finally, be prepared to fail. But make
sure you fail forward. Green is new for business, and there is a
great deal of experimentation going on. The good news is, your
buyers are finding their way, much like you are. They can
appreciate that progress won’t be smooth.

It also needs to prove itself quickly, in order to be taken
seriously. That means your strategic plan needs to outline both
low-hanging fruit, as well as rewards ‘down the road.’ This ‘href=”http://community.maddockdouglas.com/blog/entry/14682/Innovating-Outside-the-Jar-BusinessWeek/”
target=”_blank”>outside the jar’ brainstorm might be the place
to bring in fresh thinkers from outside your sector. 

Next: The greening of B2B
employees

This article is the first in a three part series exploring B2B
sustainability issues, culminating in a webinar Tuesday, February
8, 1pm EST (10am PST). To add the webinar to your Outlook calendar,
href=”https://www1.gotomeeting.com/synchOutlook?wid=520317344&uid=105599123”
target=”_blank”>click here.

Marc Stoiber is VP Green Innovation at Maddock Douglas, a
leading North American innovation agency. He has a wealth of
experience building brands and is passionate about innovation and
sustainability.  Follow Marc Stoiber on Twitter: href=”http://www.twitter.com/marcstoiber”
target=”_blank”>www.twitter.com/marcstoiber