2Sustain

When your company is ready to launch green supply chain initiatives, where should you begin?

Good question.

And, the answer –- as you might expect –- is complex. As much as I would like to give you a bulleted “to do” list that would guarantee the successful greening of your company’s supply chain, I don’t think that in the end a generic list like that would be of much value. After all, the solutions aren’t of the “one size fits all” variety. Instead, they’re ultimately as individual as your company itself. 

Here’s an example. As a first step, it’s essential that you work through the process of determining exactly what sustainability means to your company. In other words, when you think about “going green,” are you thinking solely about mitigating your carbon footprint – for example by reducing carbon impact and/or purchasing offset credits? Or, does “green” imply a whole set of other initiatives as well? For many companies, a shift toward green supply chain management involves not only reducing GHG emissions, but also rethinking core business philosophies and tackling fundamental CSR issues, such as factory compliance, supplier codes of conduct, restrictive substance monitoring (RoHS, REACH, Pb/lead-free), etc.

I would argue that in today’s complex global marketplace, it makes perfect sense to incorporate CSR issues like these into any comprehensive supply chain management strategy. You don’t have to look too hard to find recent (and staggering) examples of what can go wrong if you don’t. Last year, it was the dog food recall (April, 07), followed by Mattel’s recall of millions of toys (August, 07). This year, a Salmonella outbreak has plagued the produce industry for months, and now there’s word that even Whole Foods (long considered a market leader in food safety) needs to tighten oversight of its suppliers.

So, no quick-fix bulleted list today. But, instead I’m offering a few basic directives to help get your supply chain headed in the green direction. First, decide on your company’s working definition of sustainability. Then, start that all-important discovery process with your suppliers. Once you identify and prioritize the risks associated with the goods and services you purchase, you’ll be able to begin the process of segmenting your supplier base and targeting environmental considerations.