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March 28, 2008 
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| Greener Products, Smarter Supply Chains | ||
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Supply Chain Efficiency Metrics: Green, or Just Smart?
Borders’ closing of its U.K. distribution center to save “book miles” is a terrific example of one of the real supply-chain benefits of innovating for sustainability brings to the supply chain: common-sense business metrics. I mean metrics - or key performance indicators (KPIs), if you prefer - that represent the effectiveness of the operation at a very basic level.
Saying they are “basic” does not mean they easily arrived at. It’s difficult to create a metric that is simple to apply and yet nuanced enough to cover business operations as they may evolve over time. “Book miles” is a great leading metric that demonstrates overall effectiveness of a large part of Borders’ distribution system. It certainly makes sense when oil is $100 a barrel. And you know what? It would be a great leading metric even if oil were still $35 a barrel. It is an indicator of business effectiveness at a basic level. Wouldn’t it be interesting to know if that metric existed when the distribution center was built? What business indicators were considered when designing a U.K. distribution system in the first place? Truly effective supply chains – and the decisions about their structure - are steered by great basic KPI’s. Sustainability thinking is about considering the business broadly along with its impact on the environment and society. Such thinking is critical to finding this type of indicator - a basic metric that informs and leads a business to make the right decisions for the long-term. ~Phil Berry, Lean Manufacturing Expert and SLM Advisor Got a favorite green metric? Tell us about it! This Week's Top Stories... Unisource Offers Green Paper Sourcing Tool for Customers 
Commercial printing supply firm Unisource has launched a free online tool to help customers select environmental preferable paper for their catalogs, brochures, and other custom print jobs. Read more... McDonald's Brews Up Fairtrade Tea 
McDonald's will soon be offering fairtrade tea at its 1,200 U.K. locations, the Telegraph reports. The switch comes six months after the fast-food giant switched to fairtrade coffee - boosting coffee sales 15%. Read more...
Nissan to Require Suppliers to Report on Carbon Emissions 
Nissan is set to release new green procurement guidelines requiring parts suppliers to report their carbon emissions from manufacturing processes. The new guidelines also place harsher restrictions on parts and materials that contain toxic substances. Read more...
Xerox's New Online Calculator Shows Business Benefits of Eco-Efficiency 
Xerox has created an online calculator to help customers pinpoint ways to green their office printing and copying. The new tool enables companies to evaluate their current equipment and identify the environmental and financial benefits of switching to more resource-efficient technologies. Read more...
Raley's Tests Cleaner-Exhaust Diesel Trucks 
Supermarket chain Raley's has equipped a portion of its diesel truck fleet with new tailpipe exhaust filters that can significantly reduce smog-forming emissions, the Sacramento Bee reports. The tailpipe exhaust systems, installed five months ago, have cut average emissions of nitrous oxide (NOx) by 84%, according to the company. Read more...
Patagonia Microsite Chronicles Products' Eco-Impact 
Patagonia is tracking the environmental impact of select products from design to distribution, posting the results - for better or worse - on a microsite dedicated to the subject, Fast Company reports. The most surprising findings? Product shipping accounts for just 1% of supply chain energy use, while actual manufacturing sucks up considerably more energy than originally assumed. Read more...
U.K. Procurement Policy to Promote Green Innovation 
The British government has unveiled a new procurement policy aimed at “[harnessing] the power of government as the U.K. economy’s biggest customer to create new markets and demand” for greener products, the Guardian reports. In addition to rewarding big-name companies with large R&D budgets, the new program will make a special effort to reach out to smaller businesses. Read more...
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Mark McElroy on What's Wrong with Sustainability Reporting 
While it's great to see so many companies embracing sustainability reporting, most aren't giving us the whole picture, says Mark McElroy, founder of the Center for Sustainable Innovation (CSI). Mark is no armchair critic, however. CSI has spent the past three years developing a new reporting standard called the Social Footprint, currently being piloted by such forward-thinking companies as Ben & Jerry's. In this SLM interview, Mark discusses the philosophy behind the framework - and explains why the Global Reporting Initiative doesn't go far enough. Read more...
Top Headlines from Other SLM Channels CFOs See Business Value in Sustainability, But Question Metrics TIAA-CREF to Cut Office Building Energy Use 10% by 2010 Corporate Climate Reporters Rallying Around GHG Protocol Aramark to Green Ballpark Concession Stands Coke-Sponsored Olympic Torch Relay Touts Environmental Stewardship CH2M HILL Cuts Paper Use 23% China Launches Auto Parts Recovery Program Nokia Siemens: Renewable Energy "First Choice" for Remote Base Stations Mark Your Calendar!  This daylong event April 22 at Stanford Business School explores how breakthrough socially and environmentally responsible supply chain practices can fundamentally change business models, lead to overall improved business performance, and strengthen organizations. Click here for more information. Solution Providers |
This work is licensed under a CreativeCommons License. Copyright Sustainable Life Media Inc. 2008
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