Building a Green Supply Chain — Moving to Where the Two Green Circles Intersect

Has your CEO mandated a Green supply chain? If not, pressures are mounting quickly that will force adjustments to your business ... soon. When your phone rings, will you have the answers to customer, consumer and shareholder questions about what their organization is doing to improve its carbon footprint along the supply chain?

CEOs are feeling the pressure from shareholders, major customers and potential recruitment talent who expect their company to take an active role in operating a clean business. The supply chain is one of the most important areas in which a company and its employees can demonstrate attention to climate change and energy use. Spanning every stage of a product's lifecycle, the concept of a Green supply chain is being broadened to take in every manufacturing process that generates pollutants and consumes significant amounts of energy.

Fluctuating fuel prices have generated renewed attention to find innovative ways to improve efficiency and reduce usage throughout the supply chain. For example, recent studies show a $.04 cost per mile for every $10 /barrel increase in oil. Most companies, whose supply chains were designed five to 10 years ago when oil prices were less volatile, are leaving significant savings on the table because they have not taken advantage of greener concepts in packaging, use of lower cost, energy efficient freight modes and shifts in inventory policies required by today’s energy prices.

Results

Building a Green supply chain is both economically advantageous and socially responsible. Transportation management decisions are now having a greater impact on profitability and carbon footprint than most other areas of the supply chain for distribution and manufacturing-centric companies. Conserving energy and preventing the dissipation of harmful materials into the environment can generate a boost of 2 to 5% in operating profit.

Case Studies

Green Supply Chain solutions and offerings help you find profit improvements that otherwise would have gone unnoticed. By focusing on a combination of supply chain excellence, operating efficiency and carbon reduction, you can improve the quality of life for the planet and reduce operating costs at the same time.

Green Transportation for a leading food retailer

• Transportation procurement savings of +8%
• Empty miles reduction estimated at 4.5% resulting in:
  - Expected reduction of carbon emissions by approximately 2%
  - Improved backhaul utilization of 10%
  - Improved load consolidation of 10%

Carbon-Reduction Network for a consumer products manufacturer

• Reduce carbon footprint by 15 to 20% by adding one DC and changing supply chain practices
• Improve customer service levels to one day service by 10%
• LEEDS (Leadership in Energy and Environmental Design) certified facilities

Contact Us

For more information on Green Supply Chain, contact Stephen Bogart or by phone at 770.677.3380 or Mona Maurelli or by phone at 216.449.3600.

Read the latest on CSC’s Green Supply Chain

Sustainability: A Measured Response
Greening Your Supply Chain Network Strategy
Transforming Environment Green into Corporate Green

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