Oct. 8, 2008 - Green programs, though key to corporate responsibility, don't necessarily attract or keep customers, according to a new global survey of third-party logistics (3PL) firms. A remarkable 100% of CEOs at European 3PL companies say that environmental responsibility plays an insignificant role in winning and keeping business, according to the survey by Penske Logistics and Northeastern University. 3PL execs in North America (95%) and the Asia-Pacific region (89%) overwhelmingly agree.

On the other hand, most CEOs surveyed report plans to boost spending on green initiatives, primarily as a corporate social responsibility initiative independent of customer demand.

Why the disconnect? While companies frequently cite cost as a barrier to greening the supply chain, most aren't even sure how much such programs are setting them back, or how much they may save over time. The 3PL survey finds that less than 3% of customers have performance metrics in place to track their providers' ability to help them achieve their green goals.

The result is a wash for logistics providers. Why manage what your clients aren't measuring?

Recent research in the U.K. indicates that that 70% of supply chain executives see environmental compliance as "important" or "very important," mostly to improve cost savings from implementing energy efficiencies upstream. Yet such efficiencies often require capital investment upfront - cash many companies don't have to spend in the current economic climate. In fact, more than half (54%) of survey respondents copped to passing the buck on to suppliers, including environmental compliance clauses in their supplier contracts without making provisions for any extra costs those companies may incur.

To download the executive summary of 2008 3PL Provider CEO Perspective, click here (PDF).