Time to take a holistic approach to the green supply chain

Green Supply Chain 

Green supply chain thinking needs to go holistic. In this short article, Supply Chain Station takes a quick look at the trucking industry, and how it can move towards achieving a green supply chain.  In order to make any progress towards sustainability, all aspects of its fuel supply chains have to be put under the microscope. As the well-known saying goes, “there’s more than one way of skinning a cat.”

The trucking industry

When it comes to environment concerns about carbon emissions, global warming, and fossil fuels, the trucking industry is public enemy number one. That is of course setting aside the petrochemical industry.

The automotive industry has made some significant strides in the last two or three years towards producing more eco-friendly automobiles. Hybrid autos that are propelled by both petrol and electric are becoming more popular. But we’re still a million miles away from developing automobiles that are truly green, and that manage to accelerate faster than a snail, and travel further than just across town. 

Still awaiting a significant breakthrough

Some companies operating in the trucking industry have introduced the latest hi-tech Hydro Fuel Injection (HFI) technology which can go some way towards improving fuel consumption. But as far as a significant breakthrough goes in terms of some practical sort of hybrid halfway house, the industry is still waiting. But that doesn’t mean that nothing can be done, and this is where the holistic approach to developing a green supply chain mentality, in spite of the fuel situation, comes into being.

Let’s go holistic

Faced with the fait-accompli of having to buy oil based fuels, some trucking companies are now looking at a more holistic approach by examining all other aspects of their fuel supply chains to establish where green thinking can be applied. For example, if companies can buy fuel that is produced locally, or at least that is produced as near to home as possible, the fact that less transportation is required to get the raw material from A to B will contribute to a smaller carbon footprint.

Transport is an important component of product cost

Everyone has a part to play in this scenario. Trucking companies would normally opt for the cheapest source of fuel. But does that contribute to green supply chain philosophy? The answer is; very probably not. But if trucking companies do source “locally produced” fuel, and it puts their costs up, they will need to pass those costs on. In the end, because transport is a fundamental part of every supply chain for the great majority of products, that means that those products’ prices have to increase too. In the end, it’s the consumer who foots the bill. 

Other aspects of the holistic green supply chain

Other areas of a holistic approach to the green supply chain include things like paperless administration. This was something that many companies have lost sight of since it was first talked about; back when the PC began to be introduced into the business environment. Now that so much business can be done in the cloud, it’s time this was taken off the back burner and brought to the front of stove again. 

Championing the holistic approach throughout the green supply chain

The other thing that trucking companies can do is to talk to all their partners within the fuel supply chain to make sure that these businesses all have aggressive policies to reduce the size of their own carbon footprints. By championing green thinking in this way, companies will also be championing the green supply chain.

We’re talking about the trucking industry as an example because, as it stands at the moment, they are stymied in terms of the fuel they use. Some of course use natural gas power, but that too has sustainability and environmental issues. Whichever ever way you look at it, the trucking industry, (like the aircraft and shipping industries) are stuck when it comes to fuel, which is why a holistic approach, looking at all aspects of the fuel supply chain, can and will reap rewards.

We must all take a holistic approach the green supply chain issue

Of course it’s not just these industries who should take a holistic approach; every industry and every company should do so too. Developing holistic green supply chains is something we should all be doing. So green supply chain managers everywhere – go holistic.

What other aspects of the green supply chain would benefit from the holistic approach?