Going Green
Last week when I was in Kansas City presenting a paper at the 2008 APICS International Conference, I had an interesting observation. There was a tremendous emphasis on Sustainability. We talk about Lean Supply Chain but companies were one step ahead discussing Green Supply Chain. Initially I had dismissed it as another fad but I was amazed at the commitment more so in the High Tech Domain.
To put in simple terms, sustainability has been expressed as meeting the needs of the present without compromising the ability of future generations to meet their own needs. In light of rising energy costs, the inevitability of stricter carbon regulations, and higher expectations for corporate social responsibility, going green is not just good for the planet. Companies have taken it one step ahead saying that it is good for business.
Each supply chain has a unique carbon footprint and hence each will identify unique ways to reduce its own emissions and will vary from one supply chain to another. And what we are looking at is the end to end supply chain. It just does not work if we are dumping some of the high carbon emission zones to the partners in the supply chain.The Greater Good business philosophy of Burt’s Bees provides an interesting insight into the company’s commitment to Well-Being. A similar philosophy at TOMS shoes has broken the mold and has maintained profits and productivity by incorporating sustainability into the company mission.
