Tuesday, July 21, 2009
Are global corporations -- who move trillions of dollars in manufactured goods, components and commodities around the world -- making gains in reducing carbon footprints? Are they effectively improving real-time visibility, control and accountability across every area and member of their giant supply and demand networks?
According to a new study Acceleration of ECO-Operation: Achieving Success & Sustainability in the Supply Chain, operations, logistics and supply chain executives need a better understanding of how to go green and save green across complex, global, multi-tiered supply and distribution networks.
Ninety percent of supply chain and operations professionals surveyed say their management subscribes to enhanced trading partner visibility, flexibility and sustainability across the entire supply and demand chain, yet nearly two-thirds have marginal or no visibility across all tiers and levels of their value chain. And 78 percent of companies rate the level of synergy and accountability in their global trading network as suboptimal.
The study gained insights from more than 125 supply chain, operations, finance, and executive professionals around the world across multiple industries. It set out to measure and quantify how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns. The research was conducted in Q2, 2009. The results reveal the priorities, progress and pitfalls that supply chain and finance executives are facing in the midst of more complex and competitive product development, production and delivery environments.
The study looks at progress in achieving optimal visibility, collaboration, and sustainability throughout the multiple layers of supply and demand chain networks. Among the key findings of the study are:
- The top benefits achieved include more environmental responsibility, better sustainability compliance, more efficient product manufacturing and better customer responsiveness
- Lack of leadership, visibility and standardized sustainability metrics are holding companies back from achieving bottom line benefits
- 42 percent of companies have yet to consider carbon footprint or greenhouse gas emissions across their entire extended supply chain
- 76 percent of respondents say their customers have not requested information on carbon and emissions containment, but two-thirds expect customers to demand this in the next year
- More than half of respondents say that their competitors use sustainability or ECO-Operation practices for competitive advantage
- An overwhelming 85 percent of respondents say they are actively involved in new programs that drive operational efficiency, corporate social responsibility (CSR) and cost-savings across supply and demand chains
The report also examines detailed perspectives from more than 20 corporate and faculty leadership committee members, along with commentary and content covering best practices and viable solutions in helping companies come to grips with how to begin to insert efficient and environmental practices into strategic supply chain strategies and solutions.
Commentary from corporate leadership shows the following common themes:
- Sustainability is becoming an increasingly important consideration to supply chain management executives
- Most companies are still struggling with obtaining verifiable, consistent data to measure value chain effectiveness and
environmental responsibility - Consumer awareness and increased regulation will put added demands on companies to drive green initiatives and efficiencies in the supply chain
Click here for more information and to download the new report.
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