Technology's role in the green supply chain of the future

-- Logistics Management, 12/1/2009

The recession may have forced companies to put some or all of their "green" initiatives on the backburner. However, with the turnaround coming, our presenters tell us that now is the time to look at just how sustainable your supply chain is and what you can do to lessen its environmental impact.

In this session, Hiranya Fernando of AMR and supply chain expert Jack T. Ampuja discuss the green supply chain of the future and show attendees where their companies fit into the picture. "One can talk ad nauseam about green, but where the rubber meets the road is at the operational level," says Fernando. "Companies have to look at their current efforts in sustainability and how those efforts can be applied to the supply chain."

The two experts describe the technologies available to green the supply chain, including Transportation Management Systems (TMS), global visibility systems, and related applications. Attendees also get firsthand insight into new regulations, both in North America and worldwide, that will help or hinder the quest for sustainability.

To help companies achieve a greener supply chain, AMR has developed a new ranking system that Fernando discussed during this session. She says that the new system replaces various antiquated indexes that "almost ubiquitously lack transparency and quantitative methodology."

Fernando defined sustainable operational excellence as high-performance operations that minimize resource consumption, reduce lifecycle costs, and maximize health and productivity. Green supply chains, says Fernando, use processes that are environmentally responsible and resource efficient throughout the entire lifecycle.

Ampuja, who pointed to Wal-Mart as a good example of a retailer that's taken an aggressive approach to the green supply chain, says that just five years ago companies weren't interested in paying anything to get green. "They weren't against it, but weren't focused on it," he says. "Now it's top of mind in almost every country and in the forefront with consumers and shareholders. Everyone is interested in it."

Source: http://www.logisticsmgmt.com/