Green Options

If you are thinking about ways to green your supply chain, you’re not alone. A Supply Chain Consortium survey showed that organizations of all sizes are implementing sustainability initiatives throughout the supply chain not only to achieve regulatory compliance, but also to improve brand image and customer satisfaction.

What does that mean? The most effective greening of purchasing involves thinking about your entire inbound supply chain with an overriding purpose in mind: to select and purchase goods and services that are affordable, and have the least possible environmental impact throughout the course of every phase of their lifecycle including manufacturing, shipping/transportation, use, and recycling or disposal. And, contrary to popular belief, green purchasing does not always have to mean higher costs—although sometimes it will. In fact, by greening your supply chain you can often streamline your purchasing process, reduce overall costs, and improve your environmental footprint.

There are five good supply chain strategies that can be used to reduce waste. You can start by considering strategies that reduce the physical distance between where materials are sourced and where they are used. These strategies not only help reduce travel-related emissions, but also often result in shorter times to market and lower inventory holding costs:

Buying local is an excellent greening strategy. There significant social, environmental, and economic benefits to creating local economies. At this writing, some thirty-six cities and towns—from Albuquerque to Tampa—have adopted programs to label and promote locally owned businesses. It is always worthwhile to check with your vendors about the availability of local products and materials. Buying local also provides business owners with more control over their materials and end products. As an example, one wholesale distributor of locally grown food products in Michigan tells the story of being able to deliver poultry products that are cut to customer specifications quickly and on a regular basis, something that would be impossible if he were using larger, more distant vendors. The Business Alliance for Local Living Economies (BALLE) is a good resource for finding a local business network in your area.

Greening your purchasing involves thinking about your entire inbound supply chain with the overriding purpose of selecting and purchasing goods and services that are affordable and have the least possible environmental impact throughout the course of their lifecycles. Green purchasing does not always have to mean higher costs—although sometimes it will.

A recent study by The Aberdeen Group found that over half of all companies that had taken steps to implement a sustainable supply chain system did it because…

They wanted to be considered “thought leaders” in their industry.

The study, Building a Green Supply Chain: Social Responsibility for Fun and Profit, found that only 41% of companies had initiated green supply chain solutions in the last two years. Of those that had, the most cited reason (51%) was because they wanted to be considered thought leaders in their industry. .

This is good news for green entrepreneurs. While the obvious advantages of fuel efficiency and market differentiation are always strong selling points, the trend toward, well, “trendiness” can only help eco entrepreneurs.