November 7, 2008

Few Willing To Pay For Green Supply Chains

Capgemini in cooperation with the Georgia Institute of Technology, Oracle and DHL, released a study last month looking at the current state of logistics outsourcing.

Base on a survey of about 1,600 logistics executives from around the world, the study found that 98 percent of respondents said green supply chain initiatives are essential for future business success. However, the study also found that the majority are unwilling to invest additional funds in green supply chain. Only 46 percent of respondents said that the effect of supply chain operations on the environment was a factor considered when selecting a 3PL.

Although the survey shows that 3PLs and their users believe the associated costs of creating a more secure, integrated, environmentally-friendly supply chain should be split, there is continued resistance to collaboration and the unspoken assumption that costs will ultimately be carried by the customer.

“The greatest shared challenge is that of forming and growing successful collaborative relationships between users and providers of logistics services. Without a commitment from both sides little progress can be made in the greening of the supply chain and supply chain security. “ said Dr. John Langley from the Georgia Institute of Technology.

In October, a report by Northeastern University and Penske Logistics found that green efforts are insignificant in winning or keeping 3PL business.

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