Can Cleaner Supply Chains Share the Love?

Could collaboration between companies with similar supply chain goals be the future of highly effective supply chains? A new report certainly supports the idea, putting up some big numbers on how companies can reduce climate emissions and save big by cooperating with other businesses – even with competitors.

Sharing elements of your supply chain is nothing new - British electronics chain PC World, for example, is sharing delivery-truck space with a sister company, and it's worked quite well for them. But teaming up with your market rivals certainly is a concept that challenges conventional thinking. Does it really make sense?

I have to say that most of my supply chain clients – and I work with some world-class supply chains - find it challenging just to develop collaborative working relationships with their own suppliers, let alone unrelated, businesses or competitors. I think we’d make more progress with better models for collaboration within a more traditional supply chain model.

And I know its possible to achieve the kinds of improvements this reports suggest – for instance the 25% reduction in CO2 emissions – just by implementing more collaborative relationships that lead to significant levels of shared project work between customer and supplier.

In an era of near $150 per barrel of oil, there is little doubt the opportunity exists to use energy cost and CO2 emissions as the foundation for building these relationships. That work – and the resulting improvements – are achievable now. And for most businesses, that type of collaboration would be a new and truly revolutionary supply chain model.

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Phil Berry is SLM's expert-in-residence on sustainable product sourcing and innovation, as well as the host of Sustainable Sourcing Update.

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