Supply chains lacking sustainability
Green supply chains are being viewed as the way forward by many companies and consumers, but they are beset by a number of challenges and tradeoffs and can have negative side effects, even if the net result is positive, it has been claimed.
According to the ARC Advisory Group, a supply chain management solutions provider, the biggest issue facing green supply chains is that large tradeoffs must be made because they were not designed to be fully sustainable.
Adrian Gonzalez, director of the ARC Advisory Group's logistics executive council, said: "Tradeoffs exist because most products, manufacturing process and supply chains were not designed with sustainability in mind."
For example, green supply chains can increase the price of food products, due to the extra costs associated with proper waste material disposal and the increased demand for corn-based ethanol.
"Although sustainability is weaving its way into the industrial world, change will occur slowly, so companies and consumers will have to manage these tradeoffs for many years to come," he added.
It was recently announced that the Carbon Disclosure Project (CDP), a collaboration of over 315 international organisations, is working with the world's largest companies to asses the greenhouse gas emissions of their supply chains.
Article Date: 25 January 2008
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