Future Supply Chains Will Need Extensive Collaboration: Report

[Karl]

GreenBiz.com, 29 May 2008 –

Suppliers and retailers will need to take advantage of collaboration to develop sustainable supply chains, according to a report. Capgemini's "Future Supply Chain 2016" report looks at new concerns companies must take into account to improve their operations and reduce their impact on the environment.

Issues like carbon dioxide emissions, energy reductions and traffic congestion already are or will be just as important as current supply chain concerns such as on-shelf availability and cost efficiency. Various collaborations are listed as part of what the report says a "future supply chain" will need in order to reduce its costs, use of energy, use of resources and CO2 emissions.

Supply chains will need to collaborate on warehousing and transportation, the report says. By sharing space and delivery systems, companies can reduce their physical footprint, drive down costs and cut their emissions. Traffic congestion will continue to be a concern as more areas urbanize or urban areas expand. One solution the report puts forth is to develop city replenishment hubs, warehouses near urban areas where several retailers would keep goods to be taken in to the city. The companies would use a shared transportation system to reduce the number of vehicles on the road.

Companies need to start working with these concerns in mind, the report says, because external forces such as resource scarcity, urbanization and sustainability regulations are a reality or on the horizon.

Source: World Business Council for Sustainable Development (WBCSD)