Benefits of Sustainable Supply Chain Management

Mar 18, 2010 1:30 PM ET

Taiga Company Blog

Supply Chain Management (SCM) over the past few decades has proven there to be opportunity to reduce cost and add value in the supply chain.  However, traditional supply chain management has focused primarily on cost, with professional consulting targeting costs (including transport, inventory, and administration) of 7% to 9% of revenue. 

The recent emergence of sustainable supply chain management provides the opportunity to review processes, materials, and operational concepts from a different perspective.  It incorporates the role of the environment in supply chain value creation.   Leading companies are finding unique value opportunity in sustainable supply chain management: Pepsi-Cola Saved $44 million by switching from corrugated to reusable plastic shipping containers for one liter and 20-ounce bottles, conserving 196million pounds of corrugated material.   Click here to discover the benefits of incorporating eco awareness in the supply chain.