Executive Briefings

Supply Chain Execs Continue to See Sustainability as Key Issue, Report Says

Sustainability continues to be a key concern of supply chain executives, according to the third annual Supply Chain Carbon and Sustainability Report by eyefortransport. The report is based on a survey conducted in July and August of 130 supply chain practitioners across a variety of industries.

Seventy percent of respondents say the importance of environmental issues on supply chain processes will increase over the next three years, a result similar to last year's 73 percent. An additional 8 percent of this year's respondents expect environmental issues will become their top priority, while 20 percent expect the level of importance to stay the same. Only 2 percent of those asked predict that environmental issues will have less importance on supply chain processes over the next three years.

Surveyed companies cite a number of "green" initiatives that are under way or in the planning stage. Fifty-three percent have initiatives to measure and/or reduce emissions; 51 percent have established a corporate green team; 47 percent are using logistics providers that have embraced green strategies; and 44 percent are designing their supply chain network for energy efficiency.

The biggest barrier to companies adopting green supply chain policies is seen by respondents as a belief that customers are not prepared to pay a premium for greener services. Other barriers cited were high costs, too long a payback period for investments, not enough customer demand, and not enough people driving the process internally.

The opinions of respondents were divided on the subject of cap-and-trade regulations. Twenty-two percent of respondents feel they should be ratified as currently proposed, and the remaining number was split almost evenly between respondents who feel the regulations need to be weaker before ratification (40 percent) and those who feel they need to be stronger (38 percent).

The report will be officially released and discussed at eyefortransport's third Sustainable Supply Chain Summit, Oct. 15-16 in San Francisco. 

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Sustainability continues to be a key concern of supply chain executives, according to the third annual Supply Chain Carbon and Sustainability Report by eyefortransport. The report is based on a survey conducted in July and August of 130 supply chain practitioners across a variety of industries.

Seventy percent of respondents say the importance of environmental issues on supply chain processes will increase over the next three years, a result similar to last year's 73 percent. An additional 8 percent of this year's respondents expect environmental issues will become their top priority, while 20 percent expect the level of importance to stay the same. Only 2 percent of those asked predict that environmental issues will have less importance on supply chain processes over the next three years.

Surveyed companies cite a number of "green" initiatives that are under way or in the planning stage. Fifty-three percent have initiatives to measure and/or reduce emissions; 51 percent have established a corporate green team; 47 percent are using logistics providers that have embraced green strategies; and 44 percent are designing their supply chain network for energy efficiency.

The biggest barrier to companies adopting green supply chain policies is seen by respondents as a belief that customers are not prepared to pay a premium for greener services. Other barriers cited were high costs, too long a payback period for investments, not enough customer demand, and not enough people driving the process internally.

The opinions of respondents were divided on the subject of cap-and-trade regulations. Twenty-two percent of respondents feel they should be ratified as currently proposed, and the remaining number was split almost evenly between respondents who feel the regulations need to be weaker before ratification (40 percent) and those who feel they need to be stronger (38 percent).

The report will be officially released and discussed at eyefortransport's third Sustainable Supply Chain Summit, Oct. 15-16 in San Francisco. 

Read Full Article