Kermit the Frog’s most famous saying was “It’s not easy being green”. Granted this is coming from a lizard-like creature that wears a collar and has been smothered by that annoying Miss Piggy since 1955. Contrary to the famous quote by our green friend, a recent column published by Wendy L. Tate, Ph.D.and Lisa M. Ellram, Ph.D makes clear that being green is good for business.

Companies of all sizes are interested in finding financial benefit in their sustainable efforts as they recognize being green is good for their bottom line. Wendy L. Tate and Lisa M. Ellram point out “the first thing supply chain management should do is look for ways to reduce waste. Reducing waste nearly always benefits the environment, while also reducing cost and increasing efficiency.” Consider these sustainable initiatives to reduce cost and improve ROI in your supply chain the pair point out:

Packaging.  Procter & Gamble corporate website states by altering their detergent to produce a super- concentrated detergent resulted in less packaging and emissions through the manufacturing and logistics networks with a reduced impact on shipping.

Logistics network optimization. These sustainable initiatives require an organization’s logistics network to improve the effectiveness of their delivery and transportation system in an effort to reduce their carbon footprint which results in saving on fuel and freight cost.

Energy conservation.  By reducing material and operating expenses companies will experience long term savings in operating costs. Consider reducing water and energy use in facilities and equipment through energy conservation by using alternative sources like wind and geothermal energy.

Baby Steps.  There are a number of other straightforward initiatives companies can implement to save money while being green.

·         Lessening the impact of your packaging, don’t ship a box within a box.

·         Put a process in place for routine recycling of paper, cardboard and plastic at you operation.

·         Remind employees to turn off lights.

·         Install motion-sensor lights or change light bulbs to lower energy use.

·         Consider wind or solar energy.

·         Think about telecommuting or teleconferencing.

Most of these ideas are easy to execute in your supply chain operation, and you will have nothing to lose and money to gain.

Source: Inside Supply Management