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ROI Driving Supply Chain Sustainability

Return on investment is the second-highest driver of supply chain sustainability initiatives among shippers, third party logistics companies and supply chain solution providers, according to a recent survey by eyefortransport.

According to the report, which surveyed more than 600 professionals, almost 80 percent of the respondents said that ROI was an important driver of sustainability initiatives. Improving customer relations was seen as a slightly more significant driver, while increasing supply chain efficiency was seen as slightly less significant.

Shippers reported the greatest levels of ROI from improving energy efficiency and recycling materials. Around three quarters of respondents reported either very or fairly successful ROI, compared with only 3 percent not seeing benefits from these initiatives.

Other notable responses included strategic warehouse/distribution center placement, reducing packaging, emission measuring/ reductions, and using more efficient transport modes, all of which saw around 50 percent of shippers reporting either very or fairly successful ROI.

Respondents representing third part logistics companies also reported the greatest levels of ROI from improving energy efficiency, with reducing miles through vehicle re-routing as the next most successful initiative. Again, around three quarters of respondents reported either very or fairly successful ROI, compared with only 3 percent not seeing benefits from these initiatives. Other notable responses included horizontal collaboration with other companies, near and/or green/environmental sourcing, emission measuring/ reductions, and using more efficient road vehicles, all of which saw around 50 percent of shippers reporting either very or fairly successful ROI.

Conagra Foods recently announced that it has begun shipping its products in the U.S. on Intelligent Global Pooling Systems’ (iGPS) 100 percent recycled plastic pallets.

The Environmental Defense Fund recently released “The Good Haul,” a report detailing ten ways to reduce the environmental impact of the shipping sector. Trucking companies, meanwhile, will be under increasing pressure to adopt “green” initiatives as food producers and retailers seek sustainable supply chains, while European industry groups are urging policy makers to establish a voluntary public-private sustainable freight transport partnership.

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One thought on “ROI Driving Supply Chain Sustainability

  1. Interesting to know. While companies have certainly been crowing (spinning?) about their initiatives in their marketing, I have started to see that many have reached a “gee whiz” moment that sustainability does pay financial rewards. Real sustainability is both earth-wise, and profit-wise.

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