Green Is Good Business

Look at the list Tony Hollis offered recently at the Council of Supply Chain Professionals annual conference and it is clear that a well-run supply chain contributes to sustainability. The director of innovation and technology management for Exel says it is one of the responsibilities of an outsourced logistics provider to increase value for the customer by improving efficiency and productivity. His view of the partnership between user and supplier targets five areas to focus attention on sustainability. Each contributes to overall best practice and greater productivity and efficiency. In effect, doing what's right for logistics is also improving the environment.

First on his list is fleet optimization. At 27.9%, transportation is second only to electricity generation for producing greenhouse gases in the United States. One gallon of gasoline burned is equal to 20.4 pounds of CO₂, according to Christopher Polovick environmental protection specialist, US EPA Smart Way Transport Partnership. A gallon of diesel fuel burned produces 22.2 pounds of CO₂. To reduce greenhouse gases, Polovick suggests moving more product per shipment, using less fuel to move each unit (through steps like shifting to more efficient modes), and he suggests reducing the number of moves and handling between origin and the final consumer. Basically, his prescription is for fleet and network optimization.

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