IBM supply chain gurus Paul Brody and Mondher Ben-Hamida have a 12-step program to cut carbon out of the supply chain. Why bother? Because “industrial and transportation sectors—those that coincide with supply chain activities—account for 61 percent of U.S. carbon emissions,” they write at Environmental Leader.
Buzz over to the article to get all 12 steps, but a few jumped out at me:
Redesign the product
Even simple changes to a product design – from reducing weight to making it easier to disassemble — can reduce energy consumption and waste throughout the product life cycle.
I would add the word “assemble” in there too. Fortune’s Marc Gunther on an article about Ikea points out that a delivery truck filled with flat-packed chairs can carry the equivalent of six trucks of fully-assembled chairs. “We must stop transporting air,” said Anders Dalhvig, IKEA’s president and CEO.
Shift to green suppliers
Although some may have higher costs, green suppliers can have a big effect on the carbon implications of bringing products to market.
This is an easy fix — as long as the suppliers are cost competitive or offer a competitive brand advantage in being green. In short, swap out the dirty suppliers with cleaner ones.
Shorten distances
By rationalizing sourcing, assembly and distribution in relation to markets, travel distances and corresponding fuel use can be reduced.
Also a simple step: go local — even in globalized supply chains.
Plan for reverse supply chain activity
Products that are reclaimed from the market for upgrade, refurbishment, recycling or disposal require some kind of reverse supply chain.
This is perhaps the most challenging and needed activity. Essentially, it means the end of garbage, zero waste. Or waste becomes a resource. Another way to think about it: how do you make money at the end of product’s life? Transform it into something else useful.