Global Logistics and Supply Chain Strategies - March 2008 - (Page 8)

Clean Up While Cleaning Up Your Carbon Footprint is all the rage. In business publications, on TV, even in the popular press—sustainability is everywhere, and short of sticking your head in the sand, it’s hard to escape it. It’s also what our lead article this month is about, as you can see, and if you’ve had about all the green you can handle, you might want to put this issue down right now. That would be a mistake, a real disservice to your company, however. Green is in for a number of reasons. Concern for the planet, of course, is partly why. But if tree hugging isn’t really your thing, how about this: customers want you to be nice to Mother Nature, and if nothing else, it’s good public relations. Doubtful about that? Schneider National, among others, says that today most major customers have as part of their bid package questions about your greenhouse gas emissions and your efforts to curb them. Ultimately, much of this boils down to money, of course. Whatever comprises your supply chain— procurement, manufacturing, logistics and transportation—it all contributes to what’s being called the carbon footprint. And your supply chain can help clean up the mess or, at least, reduce it. In the process, you can save a lot of money. That’s why I want you to read this issue. In it, there are some great testimonies from people like you who can quantify how being environmentally sensitive has very positively impacted the bottom line. Interviewees point to these and other moneysaving considerations: • idling truck engines burn $3,000 a year in fuel per vehicle N o doubt it’s an inconvenient truth for some, but sustainability • onboard computers analyze how to make drivers’ shifting, braking, and tire and fuel use more efficient • hybrid locomotives could store and reuse braking energy now dissipated as heat • greater use of intermodal saves fuel • reducing aerodynamic drag caused by gaps in intermodal trains saves fuel • eliminating redundant or inefficient warehouses can save huge amounts that can be reinvested elsewhere • redesign networks with carbon footprint in mind from the get-go • better demand planning cuts out wasted inventory All of these can save you money, but I suppose it’s fair to ask if you can you be too green. In fact, says Accenture, there is a curve of diminishing returns. As you move further toward minimizing carbon, you could easily reach a point where costs increase. That’s why companies will need to start modeling their supply chain from a cost and carbon perspective. So, proceed deliberately and carefully, but by all means, get going. As Dan Sanker, CEO of CaseStack, a 3PL in Santa Monica, Calif., puts it: “Companies will adopt these practices not because it is a nice thing to do but because it saves them money and makes them more efficient and improves the quality of their whole operation. I think sustainability will be the biggest thing since the internet and will dramatically change how we do business.” Read this issue; we’ll show you the green. Russell W. Goodman rgoodman@glscs.com 8 MARCH 2008

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Global Logistics and Supply Chain Strategies - March 2008 Editorial GL & SCS Exclusive FastForward Up Front The Green in Green Think Inside the Box Have a Second Look Can't Happen Here Opinion: Stay in the Black as Your Workforce Fades to Gray Opinion: Four Critical Steps to Managing Change in the Supply Chain Industry Voices

Global Logistics and Supply Chain Strategies - March 2008

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