Executive Briefings

Aberdeen Report on Building a Greener Supply Chain

Globalization, increasing environmental compliance requirements, and supply chain cost pressures are rapidly driving the need for improved sustainability and Corporate Social Responsibility (CSR) programs and solutions in all areas of supply chain management. From environmentally friendly packaging to carbon-footprint reducing network design and logistics, "going green" has moved beyond buzzword status to become a business imperative that can lower costs and provide a competitive advantage in the marketplace. This report provides a road map to green best practices that best-in-class organizations are leveraging today to reduce overall supply chain costs, environmental impact, and increase competitive advantage. It clarifies the manner in which best-in-class strategies allow firms to plan, manage, track progress, and demonstrate the ROI, of their green initiatives. By providing the business case to support the responsibly driven supply chain, this report bridges the gap between good green intentions and sustainable enterprise excellence. However, loudly touted and poorly implemented and managed green initiatives can hurt an organization's brand image as well as both top and bottom line results. Compounded by a market saturated by buzzwords and pressure to green, an alarming number of firms take on initiatives with too little knowledge and too little support. As a result, Aberdeen research has found that companies are overwhelmingly unprepared to reap the environmental, social, and economic benefits earned by those who craft well-planned and well-executed sustainability initiatives.
Five Compelling Facts from the Research:
1. Best-in-Class achieved a 2 percent decrease in their overall logistics and transport costs, versus 1 percent increase for Industry Average, and a 4 percent increase for Laggards
2. Best-in-Class companies achieved a 6 percent decrease in energy costs, versus no change for Industry Average and a 7 percent increase for Laggards
3. Best-in-Class achieved a 2 percent decrease in the cost of operations and facilities, versus no change for Industry Average and a 4 percent increase for Laggards
4. Best-in-Class achieved an average decrease of 2 percent in supply costs, versus no change for Industry Average and a 6 percent increase for Laggards
5. Best-in-Class are three-times as likely as all others to decrease their yearly waste / disposal costs as a result of their green initiative
Source: Aberdeen Group, http://www.aberdeen.com

Globalization, increasing environmental compliance requirements, and supply chain cost pressures are rapidly driving the need for improved sustainability and Corporate Social Responsibility (CSR) programs and solutions in all areas of supply chain management. From environmentally friendly packaging to carbon-footprint reducing network design and logistics, "going green" has moved beyond buzzword status to become a business imperative that can lower costs and provide a competitive advantage in the marketplace. This report provides a road map to green best practices that best-in-class organizations are leveraging today to reduce overall supply chain costs, environmental impact, and increase competitive advantage. It clarifies the manner in which best-in-class strategies allow firms to plan, manage, track progress, and demonstrate the ROI, of their green initiatives. By providing the business case to support the responsibly driven supply chain, this report bridges the gap between good green intentions and sustainable enterprise excellence. However, loudly touted and poorly implemented and managed green initiatives can hurt an organization's brand image as well as both top and bottom line results. Compounded by a market saturated by buzzwords and pressure to green, an alarming number of firms take on initiatives with too little knowledge and too little support. As a result, Aberdeen research has found that companies are overwhelmingly unprepared to reap the environmental, social, and economic benefits earned by those who craft well-planned and well-executed sustainability initiatives.
Five Compelling Facts from the Research:
1. Best-in-Class achieved a 2 percent decrease in their overall logistics and transport costs, versus 1 percent increase for Industry Average, and a 4 percent increase for Laggards
2. Best-in-Class companies achieved a 6 percent decrease in energy costs, versus no change for Industry Average and a 7 percent increase for Laggards
3. Best-in-Class achieved a 2 percent decrease in the cost of operations and facilities, versus no change for Industry Average and a 4 percent increase for Laggards
4. Best-in-Class achieved an average decrease of 2 percent in supply costs, versus no change for Industry Average and a 6 percent increase for Laggards
5. Best-in-Class are three-times as likely as all others to decrease their yearly waste / disposal costs as a result of their green initiative
Source: Aberdeen Group, http://www.aberdeen.com