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.

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Phil Berry has spent the past 30 years implementing corporate sustainability and lean manufacturing programs at companies large and small, most recently for a global apparel manufacturer. He has worked with more than 400 organizations on five continents (particularly in India and southeast Asia), advising on core product design functions such as waste minimization and toxics reduction. Phil is SLM's expert-in-residence on sustainable product sourcing and innovation, as well as the host of Sustainable Sourcing Update.