Across industries, companies are struggling to manage inventory in complex global supply networks, trying their best to match smooth uninterrupted supply with increasingly volatile customer demand. Inventory shortages often freeze operations and sometimes cause shutdowns, costing companies their profits and public image. To avoid potential shortages, enterprises often over-stock, effectively stalling functional capital and hurting the returns on equity and assets.
August 06, 2015
In the process of developing a robust supply network across the globe, enterprises unwittingly leave behind a deep carbon footprint. Even companies that have gained some visibility to their supply chain and potential impacts are not always sure what to do next. A recent study published by CDP and Accenture (CDP & Accenture, 2014-15) reveals that policy guidance in the United States has helped equip only 50% of North American suppliers with climate risk management strategies for dealing with carbon emissions and other ecological challenges. This puts the country in the most vulnerable quadrant for climate-related risk mitigation.The good news is that a meaningful reduction in the carbon footprint of our global supply manufacturing and distribution/logistics networks is achievable and best practices are emerging. Green supply chain management (GSCM) is a proven set of strategies to control environmental impacts and risks to your global supply chain manufacturing and distribution processes. The benefits to business from developing a green and sustainable multi-enterprise supply network via GSCM techniques are numerous and compelling. They range from improved brand image, to reduced costs, to reduced operational risks.