Survey Finds Perfect Parallel Between Cost Reduction and Sustainability Initiatives
Tompkins' Supply Chain Consortium Examines Sustainable Transportation
RALEIGH, NC, December 17, 2009 -- The old tools work just fine, according to a transportation sustainability survey of top retail- and manufacturing-related companies by Tompkins Supply Chain Consortium.
ROI or cost-payback analysis and life-cycle assessment -- financial tools for measuring capital expenditures -- are also today's most frequently used sustainability business tools (See figure 1.)
Figure 1
"Many of the new carbon reduction tools are the old cost reduction tools," says Bruce Tompkins, Executive Director of the Consortium and author of the Transportation Sustainability Report. "It's no surprise that shipping fewer, fuller trucks, utilizing ocean freight rather than air, and increasing gas mileage can decrease costs. But companies are now coming around to the fortuitous conclusion that practices such as these can also help reduce carbon emissions." (See figure 2.)
Figure 2
The survey also shows that companies are making considerable progress and concerted efforts to create a more sustainable supply chain through transportation improvements. A few key takeaways from the report include:
- Companies are seeking and achieving an acceptable ROI for green initiatives.
- Environmental certification is not predominant but is growing in importance.
- Companies are embracing SmartWay, sustainable suppliers, and setting standards for suppliers.
- Programs are in place to reduce carbon footprints and reduce fuel consumption.
- Many of the improvements that companies are implementing for cost and environmental reasons are, for the most part, practical, low investment ideas that just make sense.
The Transportation Sustainability Report is the second of a four-part series on green supply chains conducted by Tompkins' Supply Chain Consortium. The series includes:
Podcasts on sustainability-related topics are also available by subscribing to the Tompkins podcast or signing up for email updates. More sustainability resources are available at www.tompkinsinc.com/sustainable-business.
To learn more about Tompkins' Supply Chain Consortium, visit the website and choose the "new member" option. The Consortium also has a LinkedIn group for companies that are interested in staying current on the latest in supply chain benchmarking and best practices.
Contact Information
Keri McManus
Tompkins Associates
919-855-5516
kmcmanus@tompkinsinc.com
About Tompkins' Supply Chain Consortium
Tompkins' Supply Chain Consortium is the premier source for supply chain benchmarking and best practices knowledge. With more than 300 participating retail, manufacturing and wholesale/distribution companies, the Consortium sponsors a comprehensive repository of 17,000-plus benchmarks complemented by search capabilities, online analysis tools, topic forums and peer networking for supply chain executives and practitioners. The Consortium is led by the needs of its membership and an Advisory Board that includes executives from Campbell Soup Company, Hallmark Cards, Hewlett Packard, Ingram Micro, Kraft Foods, Miller-Coors, The Coca-Cola Company, Target, and True Value Hardware. To learn more about how your company can become a member of the Supply Chain Consortium, contact John Foley, 919-855-5461 or learn more here.
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