Cost Hinders Greening Of Supply Chains

By Mike Sachoff
Staff Writer
Article Date: 2008-07-11

Companies that want to "green" their supply chains are most hindered by the inability to justify the cost of doing so, according to "The Green Supply Chain Study," conducted by CSC, Manhattan Associates, IBM and Supply Chain Management Review magazine.

The study found that 78 percent of the 250 supply chain executives who participated in the study are either currently implementing or evaluating sustainable supply chain initiatives.

Of those evaluating, close to two-thirds say the greatest barriers their organizations face is cost justification. Of those implementing a program, 40 percent have not developed a method to measure return on investment.

The study found more than 50 percent of the participants said they have a documented plan at the corporate level, and about the same number said their company has a senior executive who is dedicated to the effort. About two-thirds said waste disposal and recycling were the most important environmental issues to address.

"The results speak for themselves. Companies clearly need an effective method to identify and quantify high-impact areas throughout their supply chain and ensure their investments are green -- especially in cases where these efforts also drive improved profitability," said Brad Barton, a partner and managing director in CSC's Global Business Solutions group.

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.