The Green Supply Chain
In a recent trend, corporate multinational organizations have started to help their suppliers track energy, materials and carbon emissons.
These organizations have started to utilize supply chain management software to go green. This is due in large part because with the help from life-cycle analysis’, companies are able to not only lower their carbon footprint and lower their energy consumption, but also reduce costs to earn higher profits.
In a typical life-cycle analysis, an organization would begin by conducting an examination of how products and services impact the environment. This results in hiring analysts to oversee the process of raw material usage, pollution caused, and energy and transportation costs, as well as excess product and packaging that ends up in the trash.
The use of a life-cycle analysis can cause dramatic savings from a supply chain management standpoint. By merely reducing packaging by 5%, an organization could easily reduce package size, and amount of consumed goods, fit more units per cargo carrier and spend less on the amount of cargo carriers used.
The need for conducting carbon and life-cycle analysis is quickly becoming the new trend, and every organization will be feeling the pressure to properly manage their supply chain and assess their environmental footprints. Companies will continue to start moving towards green supply chain management programs on their own accord to meet tougher regulations and to cut costs within their organizations.
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