Goal: A Green supply chain
By Purchasing Staff -- Purchasing, 2/12/2009 2:00:00 AM
Companies develop tools to monitor emissions—and save money.
Companies are increasingly looking at the supply chain as a major opportunity for reducing their carbon (CO2) footprint. And, some suppliers are developing a variety of tools to help purchasing and supply chain managers digest the multiple factors involved in a new wave of carbon footprint analysis.
Bob Sanders, who manages the technical aspects for IBM's Supply Chain, Global Logistics and Packaging operations, is using a Carbon Analysis Tool (CAT) developed at the company's research facility by Kaan Katircioglu. The CAT can be used to quantify the impacts of various choices in supply chain operations. The tool captures a comprehensive range of levers IBM is investigating for carbon and cost reduction opportunities.
Armonk, N.Y.-basedIBM's CAT tool is designed to capture the greenhouse gas emissions (GHG) output at various points along the supply chain, including shipment origin and destination, transportation mode, and ton miles carried. The company then uses the tool to analyze what happens to GHG output and cost by changing these variables. This may mean choosing a plant origin closer to the customer, a less stringent delivery window, reducing packaging weight, changing product mix in shipments, or choosing a less energy-intensive transport mode.
Interface, a global carpet and tile manufacturer, has been tracking its GHG emissions, including those in its supply chain. At the start, President Ray Anderson called in the company's major suppliers and told them Interface was going for zero environmental impact throughout its product lifecycle. Those that joined in the effort would get the company's business. If not, the company would turn to others. In the company's "Cool Fuel" program, Interface drivers use Cool Fuel credit cards for tanking up at supplier pumps. The supplier, in turn provides the company with a rebate. Interface then uses the rebates to pay for offset investments in carbon sequestration.
Genco Supply Chain Solutions, a 3PL provider, helps customers determine the best locations to deploy their inventory, says Genco's President, Herb Stear. "Many times this means less transportation miles." The carbon footprint of the centers drops further due to efficient lighting systems that use motion sensors to turn lights on and off and by fork lift operators using an inch-accurate pallet placement and retrieval technology.
Meanwhile, distributor Graybar in Clayton, MO offers these tips for companies wishing to Green their operations and their supply chains:
-
Look within. From lighting to climate controls to IT, businesses have options for Greening the workplace.
-
Look within your suppliers. Does your supplier recycle? How do they manage their energy consumption?
-
Ask suppliers what Green organizations and certification programs they're involved in.
-
Avoid the unnecessary. Work with suppliers to minimize excess packaging.
Ryder overhauls supply chain unit
12/02/2007The Logistics of Supply Chain Risk
03/25/2009A new strategy with a historic perspective
07/13/2005
Now Playing: 