Greening of Supply Chains Has Economic Benefits Too
The greener a supply chain, the more likely it is to be economically successful in the long term, according to a new study by Capgemini and the Global Commerce Initiative. Collaboration is the key to a new supply chain model that addresses changes brought on by environmental regulations, the study finds.
The total potential impact of this supply chain redesign is significant, including reduction in transport costs per pallet, reduction of handling costs per pallet, reduction of lead time, lower CO2 emissions per pallet and improved on-shelf availability.
The study found that a big impact on new sustainability parameters can be made when the following concepts are merged and implemented: information sharing, collaborative warehousing, collaborative city distribution and collaborative non-urban distribution.
While individual company improvements will be implemented based on assessments of the added value of certain solutions in their specific situations, that will not be enough for collaborative initiatives, the study says. “Collaborative initiatives need industry leadership in order to move forward.”
The realisation of the collaborative concepts that comprise the 2016 future supply chain architecture will require a number of initial next steps, driven by industry leaders. The study says action must be started in one or more of the following areas:
- Information sharing – driving the collaborative supply chain
- Collaborative warehousing
- Collaborative city distribution (including home delivery and pick-up)
- Collaborative non-urban distribution (including home delivery and pick-up)
- New ways of working together in the physical supply chain (including management of required investments, capabilities, organisational resources and design, incentives and measures, social regulations like working hours, etc.)
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