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May 23, 2008 Greener Products, Smarter Supply Chains SLM Home | Sourcing News & Ideas | Connections | Events | About

Supply Chain Waste - It's Costing You More Than You Think Cost increases in the transportation of raw material and products is clear and well publicized. But another, less obvious supply-chain expense may actually be costing you more – waste. The cost of waste is determined not only by the cost of raw materials inputs (which are on their way up) but also by production processes, which have risen substantially along with the cost of oil. Yet most companies don’t know the waste rate of their supply chains. Would it surprise you if the true cost of waste in your supply chain was 35% of what you pay? That’s not an unusually high figure. What are the options for reducing the cost of waste in a supply chain? It is an over-simplification to say, “implement leaner systems.” Even if you aren’t yet on the road to “lean” in your supply chain, there are still things you can do. First, evaluate the cost of energy and the cost of waste in your supply chain. In a mature and effective supply chain, this type of cost data should flow both ways between the customer and the supplier. If the system doesn’t exist to do it – go out to key suppliers and conduct a survey of waste and energy cost. They are feeling the same cost pressures. Second, the exchange of data allows you to implement cooperative projects between customer and supplier to reduce waste and energy use in the supply chain. Share the work and share the cost savings. Nothing builds supply chain partnerships better. Supply chains have always benefited from this of work. Times of high cost provide the motivation to actually do it. ~Phil Berry, SLM Advisor What do you think? Post Your Comment Here! Also This Week... IBM Unveils Carbon Management Tool for Supply Chains IBM has released a new software tool to help companies track and manage the climate impact of their supply chains. Read more... Kraft Boasts World's Largest LEED-Gold Distribution Center Kraft has netted a LEED Gold green-building certification for its 800,000-square-foot distribution center near Chicago - the largest such facility to earn the rating so far. Read more... "Corn Cards" Replace PVC-Plastic IDs, Hotel Keys, Gift Cards Advantidge, a provider of card systems and services, has entered the growing bioplastics market with a new line of card products derived from corn. Read more... AT&T Test Drives Alt-Fuel Vehicles AT&T plans to add 105 alternative-fuel vehicles to its U.S. fleet with an eye toward assessing their environmental and operational benefits. Read more... New Fujitsu Computer Monitor Uses No Energy in Idle Mode Fujitsu Siemens Computers says it has developed the world's first monitor that requires no electricity at all while on standby. Read more... EPS Unveils Carbon Tracker for Product Manufacturing EPS Corporation, an energy-management solutions firm, has released a new tool that allows companies to track their carbon emissions at the product, plant, and corporate levels. Read more... More Sustainable Sourcing News & Tools... We want to hear from you! Post your comments or questions below any SLM news story and we'll feature the best of them here. (Note: You must be a registered SLM user to post. Not yet signed up? Click here!) Forward to a Friend! Time Is Running Out! Sustainable Brands '08 is about meeting people, digging in to just-out-of-the-field market research, and hearing about product product design and brand communication strategies that are already resulting in revenue growth and brand value at leading companies big and small. Have you reserved your seat yet? Download the conference agenda here (PDF), and register today! Solution Providers RmbrME's Gabe Zichermann: "Ditch the Business Cards" Ever look at the pile of business cards on your desk and wish there were a better way to reach out to potential contacts? Gabe Zichermann is one step ahead of you. His new company, text-messaging service RmbrME, is billing itself as a greener alternative to paper business cards. Read more... Innovations Review 2008 Introducing 20 innovations that showcase the new business as usual. This first-annual report from the Environmental Defense Fund highlights game-changing best practices that can influence nearly every functional area within a company, from real estate, operations, and manufacturing to fleet management, human resources, and finance. Case studies include green-product design at Nike, energy-efficiency upgrades at Johnson & Johnson, and fleet optimization at UPS. Download now (PDF)... Top Headlines from Other SLM Channels HP to Post Environmental Data on All Product Packaging California Businesses Hit with Carbon Fee BP to Pour $8 Billion into New Renewable Energy Technologies Dow's $1 Billion Energy-Efficiency Investment Pays Fivefold Returns Office Depot Earns LEED for Chain of Green Stores ExxonMobil Shareholders Revolt over Climate Issue Avis Stops Printing Customer Brochures REI to Equip 10% of Its Stores with Solar Panels Analysts Predict $1 Trillion U.S. Market for Carbon Trading Green-Building Retrofits Make for Happier Workers, Report Finds

Sustainable Life Media is home for business professionals looking to build new value and competitive advantage by innovating more sustainable processes, practices and products. We bring you top stories related to the what, who and how of environmental and social innovation, and help you connect with thought leaders, peers, partners and solutions providers that can help you quickly reach your goals. This work is licensed under a CreativeCommons License. Copyright Sustainable Life Media Inc. 2008

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