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Warning: Creating default object from empty value in /home4/cpc38/public_html/components/com_k2/models/item.php on line 494

Warning: Creating default object from empty value in /home4/cpc38/public_html/components/com_k2/models/item.php on line 494

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Warning: Creating default object from empty value in /home4/cpc38/public_html/components/com_k2/models/item.php on line 494

To demystify the supply chain, know the risks and costs

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062713greiner

For many companies, the vast majority of their impacts, risks and costs lie in the supply chain.

As a result, that’s where we can achieve the greatest improvements in sustainability and resiliency. With tools such as supplier scorecards, which can shine a light far back into the supply chain, companies often hold more power than they realize.
But why is it so difficult to implement corrective strategies? Well, it’s complicated. 

Let’s say, for instance, a firm wants to manage 10 key supply chain data points, such as energy, water risk and greenhouse gas emissions. That firm has 100 Tier 1 suppliers. Each supplier has its own suppliers and so on down the supply chain. The data management needs grow exponentially. At the third tier alone, the firm would be attempting to track 10 million data points, not to mention interpreting and influencing them. This example assumes the supply base is constant, has the required data and is willing to share it for comparative analysis. But in reality, it never is, it never does and there’s always confidential business information. How do we move forward?..Read more on greenbiz.

Last modified on Monday, 01 July 2013 09:14

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