green and sustainable business

No. 1: Lip service on greening the supply chain

with one comment

Greening the supply chain has been a buzz-phrase in the logistics and transportation sectors for some time now. The idea is that by creating sustainable supply chains long-term cost savings, environmental benefits and greater reliability will follow.
It turns out that it’s somewhat more complicated, falling squarely into the “easier-said-than-done” and “window-dressing” categories. That’s because manufacturer supply chains and the rise of global outsourcing have made their chains longer, increasingly complex and difficult to monitor along each link, from supplier to manufacturer to transport, warehousing and distribution.
Now the global recession is weakening green chain links even further, according to Accenture, the global management consulting, technology services and outsourcing firm.
Its recent research indicates that the greening the supply chain is falling prey to the necessity of maintaining revenue and profits. An Accenture survey of 250 supply chain executives found that only 10% of companies even track and model their carbon footprints and follow up with successful sustainability initiatives.
And only 20% of the top, so-called best-in-class supply chains as defined by Accenture are more likely to model their carbon footprints and sustainability projects than other supply chains. Just 9% of those not-as-best-in-class “others” are likely to be involved in that activity.
The study also found that 37% of those surveyed don’t have a clue about the level of emissions in their supply chain network. At least those responding are doing a better job at greening their warehouses, with 86% of them recycling and using natural light, lighting management systems and energy-efficient bulbs.
Accenture said 38% of supply chains have undertaken at least one green initiative in their transport fleet, such as streamlining vehicle design, adopting green fuels and vehicles with hybrid engines.
“The study findings demonstrate that the vast majority of organizations are taking steps to reduce carbon emissions,” said Jonathan Wright, senior executive in Accenture’s Supply Chain Management practice. “However, most are implementing carbon-reduction solutions without understanding their carbon footprint and are therefore unable to measure the real impact those solutions are having on their emissions.”
The logistics industry loves to survey and benchmark itself and spends a lot of time and energy in these activities each year. Exercising a more comprehensive and coordinated approach to measuring emissions and saving energy across entire supply chains would be time better spent and is long past due. And in the long run it will save their bottoms, er, bottom lines.


Written by William DiBenedetto

25 March, 2009 at 6:25 pm

Posted in green, logistics, supply chain

Tagged with , , ,

One Response

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  1. “the greening the supply chain is falling prey to the necessity of maintaining revenue and profits”…does that imply that the supply chain industry sees greening as a cost rather than a benefit? What about sustainability and long-term revenue, not just short-term profits? Anyway, it’s good to see that at least some are taking steps, although as you put it, probably more as a lip service to public opinion than because they really understand the full environmental impact of their supply chain.


    25 March, 2009 at 11:40 pm

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