Leading companies, on the other hand, are way ahead of the curve. They know that being proactive on the environment provides risk mitigation benefits. Why? Because they see that government legislation may soon be brought in to regulate CO2 emissions. They understand that external shocks such as wars, terrorist attacks, natural disasters, and pandemic outbreaks can have enormous impacts on supply chains and energy supply. They recognize that oil prices can only move upward. They believe that good corporate citizenship attracts investors and employees. And they see environment sensitivity as a way to differentiate themselves.
GHG emission reductions must be tackled the same way you achieve safety in the workplace. You need to implement a strategic plan and stick to it.
Greening a company requires commitment and support from the leadership team. Businesses need champions to lead their environmental initiatives… and logisticians may be the best people for the job. Not only are they involved in sourcing, but they make the critical transportation decisions that will contribute to the greening of the company.
Here are just some of the considerations they have to weigh:
1) Sourcing well – preferably as close as possible to the customer. We consistently examine the trade-off between cost of goods and transportation. However minimizing long-term costs may require us to consider other factors. What about flexibility – the ability to react quickly to market changes? What about consumer preferences? Ultimately if off-shore sourcing is the best...