In this episode, Dale Sandford, Vice President of Logistics and Fulfillment at Sony Electronics, and Jim Monkmeyer, President, Transportation at DHL Supply Chain discuss the importance of committing to sustainability goals. Listen to the two share more about the trends influencing a greater emphasis on sustainability and the meaningful changes being made along the road to net zero.
In this episode, Dale Sandford, Vice President of Logistics and Fulfillment at Sony Electronics, and Jim Monkmeyer, President, Transportation at DHL Supply Chain discuss the importance of committing to sustainability goals. Listen to the two share more about the trends influencing a greater emphasis on sustainability and the meaningful changes being made along the road to net zero.
Speaker 1 (00:00):
All right, so we're on the show
Speaker 2 (00:01):
Floor of a big,
Speaker 1 (00:02):
The industry conference and um, uh, exciting, excited to be together and face to face we do most of these, uh, virtuality. So it's always fun to have, um, folks in, in the room. So what I'd like to do first is ask you both to introduce yourselves, what's your name and your company, your role,
Speaker 2 (00:19):
And a
Speaker 1 (00:19):
Little bit about what you do there. So Dale, let's start with you.
Speaker 2 (00:22):
Sure. Dale Sanford, I work for Sony Electronics in there for about 15 years. Uh, responsible for several different operations groups, logistics and fulfillment. Also responsible for the environmental product safety market compliance
Speaker 1 (00:36):
Group. Okay, great. And Jim?
Speaker 3 (00:38):
Yeah, I'm Jim Monk, Myer president of transportation for DHL Supply Chain North America.
Speaker 1 (00:43):
Good. Good. And you're from California?
Speaker 2 (00:46):
That's right. Based out of San Diego.
Speaker 1 (00:47):
And Jim, you're in Ohio.
Speaker 3 (00:48):
I'm in Columbus, Ohio.
Speaker 1 (00:49):
So Dale gets the award for early duty. It's 8:00 AM and you Eastern Pacific time. It's an early one for you. So Dale, Sony, your offices are out in San Diego. So tell us a bit about the Sony business. Just thumbnail sketch to orient us around what it is functionally, I understand what you do, but what the Sony brand is in the us.
Speaker 2 (01:08):
Sure, sure. Yeah, so we have uh, really four major product lines within Sony Electronics. You know, of course television is our biggest one, but we also have everything to equip your home with audio and visual as well. We have our camera business, our imaging solutions business. Then we have our professional business. So all of the large cameras that are used by the major networks and filming and live events as well. Okay,
Speaker 1 (01:32):
Great. And then Jim, people think of us as a warehouser often, so if you could talk a little bit about DHL's transportation business as well as what we do with Sony, or maybe use Sony as an example to illustrate what we do
Speaker 3 (01:44):
In transportation. North America we've got three primary solutions. We have dedicated fleet operations and we have freight brokerage. And then we have our lead logistics partnership service, which is really a four PL type service. And that's what we provide to Sony and we operate similar products on six continents.
Speaker 1 (02:02):
Okay, good, good. So just spending a minute on LLP/4PL I think those are some of the least understood terms in industry. What's your definition of those?
Speaker 3 (02:11):
Yeah, it can be a full turnkey solution on behalf of our customers. It is a open book from a freight perspective. So we can work jointly with the customer to help them reduce cost, improve service around primarily transportation. But it can start with network design. So designing the, the supply chain where the different nodes will be and so forth to get product from origin to final customer, the planning and execution of the shipments, the procurement of transportation ending with the audit and payment and the analytics work around continuous improvement.
Speaker 1 (02:44):
Okay. So maybe it asks the same question to you Dale. So what do you look for from a provider for LLP or 4/PL service?
Speaker 2 (02:52):
Well, I took on this job about four years ago. Went through kind of a major transformation, we call it M RRP or mid-range plants or really a three to side year look. Started with transport, which we've had a big relationship with D Hhl. They've been very supportive. We did three years design a new contract for three more years and then it was really outsourcing our warehouses and also doing a lot on the inbound side, right. In terms of transformational and, and D Hhl is now partnering with us in some of those areas now as well.
Speaker 1 (03:19):
Great. Great. Okay. So I know we wanted to talk about a big trend in supply chain and frankly the world right now, which is sustainability. And I know Dale, you have some thoughts about kind of what it means personally and what it means as a businessman and what it means for your company. So I just thought you'd open it up and say just generally how are you guys thinking about sustainability? What does it mean to you? There's an environmental component I know, but there are other facets to it. So go ahead and start.
Speaker 2 (03:44):
Yeah, all the good companies in the world now have sustainability goals, right? And most of them are called road to zero. Sony is no exception, right? So we've got specific plans related to 2025. So we've got kind of three phases. We got 20, 25, any 30 midnight, 2040, right? Is uh, really trying to get to zero emissions at that point. There's a lot of unknowns related to that, right? What's gonna happen? Is it gonna be electric vehicles, is it gonna be hydrogen vehicles? You know, specifically around the transportation space. So I think my focus, you know, at an employee level is things that we can do now, right? So all of these are things in the future, the chances that the three of us will still be in the positions that we are by 2040 is pretty slim, right? And so I think there, but there are things that we can do now.
Speaker 2 (04:29):
And so I thought I shared my own personal sustainability journey. Yeah. Right? And what I try to do, so I try to take that and encourage my employees to take maybe components of it and you don't have to do all of the things that I'm doing right as it relates to sustainability. But there are things that I encourage everybody to kind of pick one thing where you can live more sustainably. So some things I've been doing for years. So composting for example, is something that I grew up in rural New Hampshire, we did that. So I continue to do that throughout highlight. But then there's other things that I've kind of adopted over time. So for us, my wife and I, we watched a music called Forks Over Knives about, you know, three or four years ago it demonstrate what, you know, a plant-based diet can be healthier.
Speaker 2 (05:11):
Studies show that people didn't get cancer as much, right? If they were on a diet like that. So that was kind of the first thing that we did, you know, and it's not that I don't eat meat at all, right? If I have a choice, I'll usually opt for something that's plant-based and it's really kind of okay, you know, what you're eating. And then the second thing is around shopping as sustainably as you can. Right. You know, making choices. You know, try to buy local wherever you can. Where I live in East County outside of San Diego, we've got a farm there, right? So we actually made friends with the farmer, his name is Jared Lakeside, California. Right? We go to his farm stand every week and actually he will deliver as well. Mm-hmm. <affirmative>, we're able to kind of tap into locally produced goods there.
Speaker 2 (05:50):
And then related to trash itself, I tried to move towards as close to zero waste as possible. So I canceled my trash about four years ago. And really that was kind of a bit of a force and function for me. And then kind of separate everything. So anything that's recyclable goes into the recycle bin. I recycle that cans of bottles I can five, 5 cents for. Right. So I'm able to collect those. And then anything that's burnable, right? So we have a fireplace, we have an outdoor fire. So anything that corrugated or whatever goes to burn, other than that, there is a small amount of trash each week while take into work or drop off at a gas station or whatever. So yeah.
Speaker 1 (06:26):
Yeah. So you said you try to bring that into the office, they'll share it with folks that you work with. How does that play out?
Speaker 2 (06:32):
There's the haters out there, right? That think that I'm a little bit crazy for doing what I do, but you know, try to share things like we all have probably a ton of coffee cup, you know, in our cupboards right? That we don't use. So I bring those in and, and anyone, so instead of having to go and get a paper cup, they can use one of those cups. So I think overall it's been pretty well received. I think some employees have taken it more seriously than others. Yeah.
Speaker 1 (06:56):
Yeah. So I want to maybe transition to, we work for big companies that are, let's admit it, big emitters and we all have our corporate goals, but you know, sort of translating to the workplace. And Jim, I wanna ask you, touching on something Dale hit on electric versus hybrid trucks. I know everybody wants them. Everybody is eager to get 'em. Realistically, how is it playing out from a production standpoint? Availability, feasibility? What are you seeing in the work you're
Speaker 2 (07:26):
Dealing
Speaker 3 (07:26):
In? It's a challenge right now. It's good to be on the cutting edge of all of this. Mm-hmm. <affirmative> and trying to be an innovator ev class A trucks that we've ordered. We're still waiting for those.
Speaker 1 (07:35):
And how long ago was it that you put the wire
Speaker 3 (07:37):
In? Well, some of them, quite some time with their friends at Tesla. Others with Volvo and with Freightliner have been more recent and we've taken a few of those, but there have been delays. Mm-hmm. <affirmative>. And our goal is to get to have our sleepy one third sustainable clean energy by 2030. And at the pace we're going, it's gonna be tough, but we're expecting things to wrap up and take delivery on those vehicles. We want to get enough of them in so that we can run adequate tests on how long these batteries are really gonna last, how they'll operate in city traffic versus highway cold climate versus warm. These are all the types of things we need to understand before we can really put them out in mass. And with the technology and the process we've set up for our procurement events, we can look at the offset between CO2 and cost and allow companies like Sony to make educating decisions about what providers they select. Right.
Speaker 1 (08:31):
But that's tricky though, because you're relying on other parties for emissions information and performance and that's gotta be complicated.
Speaker 3 (08:40):
We just had our carrier summit, which is an annual carrier conference last month. Uh, we had about 80 carriers there. And we have to emphasize with them the importance of SmartWay. We've got some carriers that aren't on the program yet, it's, it's a voluntary program. And so we work with and encourage them to join. We've been able to get many carriers to join SmartWay and then we need to educate them to drive their scores down by purchasing more fuel efficient, more CO2 efficient vehicles. And that's a process as well. But they know that over time more, uh, leading edge companies like Sony are gonna demand that they're on board with the program and driving their scores down. And they're not gonna have opportunities with us if they don't work to get there. We have that on truck LTL truckload, we're working on getting that for air and ocean, which are not readily available. So those are different aspects that we're gonna have to measure ourselves and hold those carriers and, and providers and forwards accountable.
Speaker 1 (09:30):
So realistically though, Dale's and Sony's goals to drive to zero reflect what DHL is doing and what then DHL's carriers are doing. So that's, we have to
Speaker 3 (09:41):
Be there. Yeah. In fact, Dale and other, so our customers were at the carrier summit to help kind of emphasize, uh, where they're going not just from sustainability standpoint, but from cost and service standpoint as well,
Speaker 1 (09:52):
Both global companies. I wondered Dale, about what you see from your Japanese colleagues versus other Asian and Europeans. I feel like in North America, we're sort of the caboose on this train. What's it like for you and do you feel that's pressure or do you get good leadership from 'em?
Speaker 2 (10:11):
When you go into the fish in Tokyo, you can see that they take, you know, the segregation of crash very seriously. So they are well ahead of us. Most of the emphasis, if you think of our Road to Zero currently is on the manufacturing side. So that's kind of part of phase one, right. Actually the transportation part of it, until phase two, that would be 2030. But now, you know, to Jim's point, it's all about kind of setting the baseline, understanding your emissions and understanding the areas where you tend focus on and you know, being op as different technology and,
Speaker 3 (10:43):
And other things come on. Yeah,
Speaker 1 (10:45):
Gotcha. Same question to you, Jeremiah. I mean, I know we've actually had to install a, a European in our North American business to help us with this
Speaker 3 (10:52):
Journey, right? Yes. The knowledge that Stefanski bring into our business. It's interesting. I would say in some ways we are a little bit slower to move. I think in North America there's a sense of, I if this is gonna bring financial benefit to me, I'm not necessarily gonna do it. And I see that with some companies, but you know, there is a value proposition now for some of these technologies. And we have a benefit, I think at DHL because we have a large warehouse footprint and a lot of our dedicated fleet operations run in and out of those facilities, which allows us to set up our own charging infrastructure and not be dependent on national availability. Gives us an advantage.
Speaker 1 (11:28):
Okay, so there's emerging ROI calculation, but still emerging.
Speaker 3 (11:33):
Yeah, it's, it's very complicated. Yeah. You've got different rebates in different states. You've got the charging infrastructure that you need to work out the, as I said before, the range of the vehicles is not really fully understood and tested. And then if you wait, does something better come out, whether it be hydrogen or longer range EV vehicles, a long-term solution, a long-term best solution. And then you have the naysayers who are saying, yeah, but we're all pulling this from the grid and how are we getting that electricity? And fortunately there are other people working on that problem. Yeah. Right. So we just have to, you know, trust each other and take those first steps.
Speaker 1 (12:08):
I don't understand the hydrogen thing and I'm sure I'm not alone. Do either of you kind of get what that's
Speaker 3 (12:14):
About? Well, uh, yes and no. Okay. I, I think the challenge, uh, with hydrogen, it's actually feasible today, which is why people are talking about it, but it's getting that hydrogen to where you need it. That is the challenge.
Speaker 1 (12:27):
Yeah. So this is the right thing to do kind of thing. There's a emerging roi, but then I, I wonder as a big consumer brand, Dale, what your company's research shows about what consumers expect and how that's
Speaker 2 (12:42):
Evolved. Yeah, I mean that's one of those things that if you think about as larger companies were doing, we, well be 10, I think that over top consumers are going to really force us to do it, especially proceeding with the younger generations. Right? So like, kids are 27 and 23, right. And they're, especially the young one, very much wants to live sustainably, wants to buy brands that are sustainable. And, you know, also wants to ensure that what the companies are showing is being ho in terms of their website so forth, that they aren't being greenwashed, if you will.
Speaker 1 (13:13):
Greenwashed. That's an interesting new term. What is that?
Speaker 2 (13:17):
People claiming to do things and claiming to do all of these same and are really not doing that by
Speaker 1 (13:22):
Yeah, yeah. Faking it. Do you see with younger associates, particular interest of them either picking up some of your personal habits or just wanting to work at a place where that's a priority?
Speaker 2 (13:33):
Yes. Yeah, very much so. Not everyone, but definitely the younger generation, you know, these are things that are important to them. They want to be linked to a company that really is moving forward in terms of sustainability.
Speaker 3 (13:46):
Totally agree. We emphasize what we're doing, you know, the realistic aspects of what we're doing with our employees because we know it's important to them. We see that in survey, survey results that we conduct.
Speaker 1 (13:56):
Yeah. So just to do a little crystal ball. I don't, I think you're, you're right to point out, we, we probably won't be working in 24. I hope not. How good are you feeling about the goals that you set? I mean, D Hhl has a 2050 goal, so we gave ourself another decade, but are you feeling like it's a slam dunk? Is it 50 50 proposition?
Speaker 2 (14:14):
Yeah, probably 50 50. I mean, Gartner showed something. Yes. One of the, one of the workshops yesterday, they showed that 80% of the properties are gonna reset their goals. But, but again, it, you know, that's, it's not a reason not to think about it, focus on it. And that's really the, you know, the thought, you know, with, with, with Sony is to set these fairly aggressive goals if we need to modify them because the technology just doesn't support it. Right. We will. But this is what we're tracking to
Speaker 1 (14:37):
You. And it sounds like you've got your teams ready to jump on things just by making it a front of mind topic. Yeah. Yeah. How about you, Jim?
Speaker 3 (14:45):
Yeah, I think the same. I think goals are there to generate action and that's what we're doing. Whether we hit those goals exactly on the date is really not gonna make the difference that taking action now will have and each of us doing our part.
Speaker 1 (14:58):
Yeah. Well said. All right, well thanks to both of you for, uh, joining this morning. It's good to see you and appreciate your time and contributions and best of luck on 20 25, 20 30, 20 40, 20 50.