2Sustain

Despite the global recession of 2008 and 2009, many large third-party logistics (3PL) companies increased their commitments to developing greener practices and building environmental sustainability programs, according to a new report released yesterday by Penske Logistics and Dr. Robert C. Lieb, Professor of Supply Chain Management at Northeastern University.

The ”Third Party Logistics Sustainability Report” compiled data from 35 third-party logistics company CEOs across North America, Europe and Asia-Pacific and found that:

• “A  corporate desire to do the right thing” was by far the most important reason to commit to sustainability initiatives, with 24 out of 39 CEOs ranking it as the primary reason. “Pressure from customers” ranked second.

• This corporate dedication to sustainability programs yielded overwhelmingly positive results for 28 out of the 35 CEOs surveyed, including reduced operating expenses, positive impacts on company employees, and substantial savings in fuel costs.

• Six CEOs reported that company sustainability efforts led to increased business with both existing and new customers.

• Despite these investments, however, most CEOs noted that sustainability was “very infrequently” a determining factor in either extending existing contracts, or securing new 3PL business. The CEOs  interviewed stated that on average 21 percent of existing customers and 20 percent of potential customers raised sustainability issues in their discussions with the 3PLs. (Of course, those percentages will increase as regulations evolve and 3PL customers begin to scrutinize their supply chains more carefully.)

More details about the survey findings are available in this press release.