Supply Chain Visibility Best Practices » Supply chain strategy

Going Green and Cutting Costs

Emily — Wed, 21 Oct 2009 20:00:10 +0000

To stay with this week’s theme of establishing an environmentally-friendly supply chain, here are a few more tips from Logistics Management on going green while at the same time cutting costs: Green logistics: Industry expert cites ways of going green and cutting costs at the same time. In the article, supply chain expert Jack Ampuja discusses strategies such as redesigning packaging and logistics systems, and the effect that oil price fluctuations can have on supply chains:

Right now, Ampuja said, the smart companies are working on “what if” plans for oil prices at $100, $120, or even $150/barrel, ready to implement when and if prices go that high. With each plan, companies have to think about how many distribution centers they have, how efficient the routes are between them, how they manage inventory to feed those routes, and other issues.

“The (plan based on) $150 oil is going to give you a different network than $80, I guarantee,” he said.

Another area that companies need to revisit is packaging optimization. Ampuja said packaging can cost companies much more money than it needs to, and use too many raw materials. Companies that cut packaging down to size can cut as much as 40 percent of their shipping costs.

While there has been a buzz across the industry about the environmental sustainability issue for quite some time now, I have noticed that press coverage on the topic has picked up significantly in the past few weeks. Many of these articles, including the one above, cite presentations that various supply chain experts have given at industry events (a lot of big industry events and conferences are held around this time of year). To me, the fact that this has become such a recurring theme among industry experts is an indication that in upcoming months, “going green” will start to become the norm, and not just a competitive advantage that companies can have, as their customers will start to expect it.

Video: Walmart’s Supply Chain Emissions

Emily — Wed, 21 Oct 2009 18:52:23 +0000

Here’s a video I found that explains how Walmart plans to track supply chain emissions in order to provide carbon footprint information for all of their products. This follows up on a couple of blog posts I’ve made recently on this topic. Enjoy!

Where is Supply Chain Strategy Heading? CSCMP Hosts a Panel Discussion

Emily — Wed, 14 Oct 2009 20:15:09 +0000

At this year’s CSCMP Annual Conference, a panel discussion was held with John Coyle of Pennsylvania State University, Bud LaLonde of Ohio State University, and Don Bowersox of Michigan State University, to discuss what will be needed now and in the future for supply chains to evolve and contribute to economic growth and corporate sustainability. Everyone offered some interesting views, and in case you were not in attendance, Logistics Today has posted up some of the key take-aways from the discussion.

A common theme among the panelists is that global supply chains and supply chain best practices are constantly changing and evolving. As prices, transportation rates, market volatility, current economic states, and a number of other variables fluctuate, it is necessary to tweak your supply chain strategies in order to optimize your network. To do so, it is important to remain flexible and open-minded, and keep in mind that what worked a year ago may not be the best solution today.

Please visit Logistics Today for more information on this discussion.