North American Supply Chain Report - Dec2010

North American
Sustainable Supply Chain Report

A brief analysis of eyefortransport’s recent survey
2010
For further details, please contact:

McKinley Muir
eyefortransport
World phone: +44 (0)207 375 7167
US Toll Free: 1 800 814 3459 Ext. 7167
Canada Toll Free: 1 866 996 1235 Ext. 7167
mmuir@eft.com
North American Sustainable Supply Chain Report 2010
Table of Contents
I. Introduction ............................................................................................. 5
II. Methodology and Approach ................................................................ 6
III. Profile of Respondents ......................................................................... 7
IV. Importance of Supply Chain Sustainability .................................. 9
V. Sustainable Supply Chain Initiatives ........................................... 11
VI. Measuring Supply Chain Sustainability ....................................... 18
VII. Awareness of Sustainability Issues ................................................ 21
VIII. Conclusions .............................................................................. 25
4th Sustainable Supply Chain Summit 2

October 28-29, San Francisco www.eft.com/sustainablesupplychain
List of Charts
Annual Revenue ...................................................................................... 7

Business Type ...................................................................................... 7
Shipper Industries Represented ................................................................ 8
Importance of Environmental Issues to
Shipper Supply Chain Strategy ................................................................ 9
Importance of Environmental Issues to 3PL
Supply Chain Strategy ........................................................................... 9
Importance to Shippers of Sustainability in Other Companies ........ 10
Change in Scrutiny for Shippers over Supply Chain
Sustainability .................................................................................... 10
Key Drivers for Shippers Instigating Sustainable
Supply Chain Initiatives (2010) .............................................................. 11
Key Drivers for Shippers Instigating
Sustainable Supply Chain Initiatives (2009) ......................................... 12
Key Drivers for 3PLs Instigating
Key Drivers for 3PLs Instigating
Biggest Barriers for Shippers Adopting Green
Supply Chain Initiatives ......................................................................... 14
Biggest Barriers for 3PLs Adopting Green
Supply Chain Initiatives ......................................................................... 14
Success of Green Initiatives for Shippers ......................................... 15
Success of Green Initiatives for 3PLs ................................................... 16
Anticipated Drivers for Improving Sustainability of
Supply Chain .................................................................................... 17
Shipper Levels of Measurements or Reductions .............................. 18
3PL Levels of Measurements or Reductions ......................................... 18
Key Reasons for Shippers to Measure Supply Chain
Sustainability .................................................................................... 19
Key Reasons for 3PLs to Measure Supply Chain Sustainability ........ 19
Level of Shipper Emission Data Collection ......................................... 20
Requests by 3PL Customers for Sustainability Reports ................... 20

Shipper Awareness of Green Programs ......................................... 21

3PL Awareness of Green Programs ................................................... 22
Responsibility for Environmental Supply Chain Issues ................... 23
Methods of Discovering New Supply Chain Technologies ........ 24

I. Introduction
In the aftermath of the recession, budgets are still tight and initiatives
are being heavily scrutinized for ROI. Whilst that would seem to restrict
further developments in the environmental and sustainability arena, the
more challenging business climate has resulted in a veritable surge of
new initiatives and increased commitment across a wide-range of
industries.
The rise of Scope 2&3 emissions reduction targets and Life-Cycle

Analysis shows that far from being deemed irrelevant, sustainability
initiatives are being prioritized and invested in. Likewise, the
emergence of sustainability scorecards from companies such as Wal-
Mart, Procter & Gamble and Kaiser Permanente foreshadow the need
for standardization and a future in which sustainability practices are
ubiquitous.
The 4th in an annual series of reports, the 2010 North American

Sustainable Supply Chain Report captures a snapshot of the current
industry views, initiatives and challenges in regards to sustainability
within the supply chain. The goal of the research is to shed light on the
industry’s major concerns and barriers in this area, as well as to highlight
the programs that are benefitting companies most – both in terms of
waste/emissions reduction and ROI.
All of the data gathered in this report will be discussed and debated a
the 4th Sustainable Supply Chain Summit – the industry’s most respected
forum for Fortune 500 case studies and practical, up to the minute
strategy. This year’s event is focusing on more advanced sustainable
supply chain initiatives and will be showcasing in-depth case studies
from Sustainability Thought Leaders offering metrics and real life
examples of what’s work and what hasn’t. The Summit will take place
October 28-29 2010 in San Francisco.
For more information on the report or the 4th Sustainable Supply Chain
Summit, please contact McKinley Muir at mmuir@eft.com, US Toll Free 1
800 814 3459 ext. 7167, CAN Toll Free 1 866 996 1235 ext. 7167, or visit
the website at www.eft.com/sustainablesupplychain

II. Methodology and Approach
This survey was conducted in March / April 2010 with responses solicited
by targeted e-mail lists, select trade association memberships, various
related-industry databases and other targeted methods. The survey
looked at a range of topics, including the importance of supply chain
sustainability, sustainable supply chain initiatives, measuring supply
chain sustainability, and awareness of sustainability issues. No
individual responses were analyzed, but rather all responses were
consolidated.

III. Profile of Respondents
Over 600 professionals responded to the survey. 48% of these

represented shippers, with 29% representing 3PLs and 23% representing
supply chain solution providers.
A large proportion of respondents (34%) represented companies with

annual revenues above $1 billion. 15% represented companies with
annual revenues between $250 million and $1 billion, 14% represented
companies with annual revenues between $50 million and $250 million,
and 37% represented companies with annual revenues below $50
million.

The respondents representing shippers covered a broad spread of

industries. The manufacturing/industrial and retail & consumer
packaged goods industries saw the highest number of respondents.

IV. Importance of Supply Chain Sustainability
In both this year’s survey and in last year’s, respondents were asked
how important environmental issues are to their company's supply
chain strategy. The largest number of shipper respondents saw
environmental issues as being important this year, whereas 2009 saw a
larger number seeing them as very important. In contrast, results from
3PLs remained fairly consistent this year and last, with the majority of
respondents seeing environmental issues as being important.

Shippers were asked to identify to what degree does another

company's sustainability affects their decision to do business with them.
The majority of respondents saw it as being one factor among many
others, however, a higher number placed greater importance to the
issue than the number who didn’t see it as a consideration.
Shippers were also asked whether they think scrutiny over their
company's supply chain sustainability has increased, compared to a
year ago. A very similar pattern emerged to that seen in last year’s
report, with the vast majority seeing an increase in scrutiny, be it slight,
moderate, or notable.

V. Sustainable Supply Chain Initiatives
The report looked at the key drivers for decisions to instigate sustainable
supply chain initiatives. On the whole, all respondents attributed less
importance to these drivers this year than they did last year, however
the relative importance of the various drivers remained markedly
similar.
This pattern was evident in the responses from shippers, where the
majority of responses in 2009 highlighted most drivers as being very
important, whereas they were broadly highlighted as being important
or reasonably important in this year’s report.
The most notable exception to this was regarding financial ROI, as it

was the only driver that increased its importance level to shippers, from
being the 9th most important driver in last year’s report, it was viewed as
the 2nd most important driver in this year’s report.
The relative importance of the various drivers remained fairly consistent

for shippers, with improving customer relations being seen as the most
important driver in both reports, and improving investor relations being
given less importance in both reports.

The same pattern was broadly seen in responses from 3PLs, with most
drivers having less importance than last year, but with their relative
importance remaining similar. The exceptions for 3PLs were regarding
increasing supply chain efficiency, decreasing fuel expenditure, and
improving customer relations, all of which maintained the same
importance as last year.

Responses showed less correlation when it came to the biggest barriers

to adoption of green supply chain initiatives, with the relative size of
these barriers varying quite markedly between the different groups of
respondents.
The most notable barriers for shippers were payback period being too
long, cost being too high, customers not being prepared to pay a
premium, and a lack of data and standardization with around 50% of
respondents rating these as being either a barrier or a big barrier.
On the whole, most factors proved to be bigger barriers for shippers

than for 3PLs. With the exception of customers not being prepared to
pay a premium, all other factors were less of an obstacle to 3PLs than
to shippers. A lack of data and standardization was also largely seen
as a barrier by 3PLs, though very few respondents saw it as being a big
barrier.
One of the most notable responses from 3PLs was the lack of
respondents, compared to shippers, who saw payback period being
too long as an obstacle. While this was the main concern for shippers,
it was only a minor concern for 3PLs. This was also reflected in the
decreased importance 3PLs placed on financial ROI as a driver for
instigating sustainable supply chain initiatives.


Respondents were also asked to identify the green/environmental

initiatives their company has in place or are planning to put in place
within their supply chain, and how successful they have been. On the
whole, both shippers and 3PLs have had broadly similar levels of
success with green initiatives, albeit by utilizing different methods. Of all
the initiatives that the report looked at, a greater number of
respondents have reported either very or fairly successful levels of ROI,
contrasted with the number not seeing any benefit from the initiatives.
In response to this question, shippers reported the greatest levels of ROI

from improving energy efficiency and recycling materials. Around
three quarters of respondents reported either very or fairly successful
ROI, compared with only 3% not seeing benefits from these initiatives.
Other notable responses included strategic warehouse/distribution

center placement, reducing packaging, emission measuring/
reductions, and using more efficient transport modes, all of which saw
around 50% of shippers reporting either very or fairly successful ROI.

Respondents representing 3PLs also reported the greatest levels of ROI

from improving energy efficiency, with reducing miles through vehicle
re-routing as the next most successful initiative. Again, around three
quarters of respondents reported either very or fairly successful ROI,
compared with only 3% not seeing benefits from these initiatives.
Other notable responses included horizontal collaboration with other

companies, near and/or green/environmental sourcing, emission
measuring/ reductions, and using more efficient road vehicles, all of
which saw around 50% of shippers reporting either very or fairly
successful ROI.
The survey also looked at what respondents think will be "the next big
thing" to provide a push for companies to improve the sustainability of
their supply chain. Results were fairly uniform across the different
groups of respondents, with firmer legislation/regulation and consumer
driven demand being the two most anticipated drivers.


VI. Measuring Supply Chain Sustainability
The report also looked at a number of issues regarding measuring

supply chain sustainability. Respondents were asked to identify what
measurements or reductions they are currently undertaking.
Energy consumption was measured/reported/reduced to the greatest

extent by shippers, with water consumption, fuel expenditure, solid
waste, and carbon emissions the other most notable areas of focus.
For 3PLs, carbon emissions, air emissions, energy consumption, and fuel
expenditure, were the most notable responses.

Respondents were asked to rank their top reasons for working to

measure supply chain sustainability. Overall, 3PLs rated these factors as
being slightly more important than shippers considered them to be,
though a similarity can be seen in the relative rankings of the factors.
The most notable variations in the responses was seen in the increased
importance placed by shippers on reputation for social responsibility,
and the increased importance placed by 3PLs on gaining customers.

Shippers were asked how advanced their emission data collecting is.
The majority rated their data collection as advanced or very
advanced, while a sizeable number were still in the development
stage. Only a minority considered their data collection non-existent,
with a greater number for Scope 3 than Scope 2, and a greater
number for scope 2 than scope 1.
In turn, 3PLs were asked whether their current and potential customers
are asking for sustainability reports, including emissions data. The
majority either haven’t been asked for the information, or have been
by less than half their customers. Only 13% see most of their customers
requesting this sort information.

VII. Awareness of Sustainability Issues
Respondents were asked to identify their levels of awareness and

participation of a variety of green programs. The responses showed
similarities between the various groups of respondents, though there
were a few notable differences.
There was a much larger degree of participation in the EPA SmartWay

Program by 3PLs, with 46% participating in it compared to 17% of
shippers. In contrast, there was a greater degree of participation in the
LEED-EBOM Program by shippers, with 21% participating in it compared
to 5% of 3PLs.

The report also looked at who is responsible for environmental supply

chain issues within organizations. There were some notable differences
in the responses, with the responsibility lying with the Operations
Director far more often for 3PLs than for shippers (25% for 3PLs
compared to 8% for shippers).
There was also a higher number of 3PLs who gave the responsibility to a
Green Team or a Transportation Director, while a greater number of
shippers gave the responsibility to either a Supply Chain Director or a
Procurement Director.

The final issue in the survey queried where respondents find out about
the latest supply chain technologies for their company. In this regard,
there were similarities in the overall pattern of answers, though 3PLs
generally used a greater range of sources compared to shippers.
The most frequent source for all respondents was in sessions at

conferences or trade shows. Webinars and exhibitions at conferences
or trade shows were other popular options, both of which were utilized
by over 50% of respondents.


VIII. Conclusions
Difficult economic circumstances have not abated the need for

improvement within supply chain sustainability; rather, the data
suggests an increased awareness and development of new initiatives.
One of the most telling statistics is the advancement of Financial ROI as
the 2nd highest driver in 2010 from the 9th highest driver in 2009. Clearly,
the link between sustainability and good business practices is being
forged and with continually increasing scrutiny, companies will be
looking to stay ahead of the curve with the most efficient and
profitable programs.
The emergence of sustainability reporting and score-carding

demonstrates that this an area of increasing scope – the companies
that invest now will be the market leaders and the ones who lag
behind may find themselves sidelined by competitors who can deliver
supply chain sustainability benefits.
For more information on what companies like Starbucks…Procter &

Gamble…PepsiCo…Coca Cola…Office Depot…American Electric
Power…IBM…Unilever…Sharp Electronics…Applied
Materials…Cadbury…BT Americas…Verizon and many more are doing
to enhance the sustainability of their supply chain, visit
www.eft.com/sustainablesupplychain and join as at the 4th Sustainable
Supply Chain Summit, October 28-29 in San Francisco.
For further details about the 4th Sustainable Supply Chain Summit
please contact:
McKinley Muir
Head of Research & Market Insight
US Toll Free: 1 800 814 3459 ext. 7167
CAN Toll Free: 1 866 996 1235 ext. 7167
mmuir@eft.com


North American Supply Chain Report - Dec2010

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

North American Supply Chain Report - Dec2010

Hochgeladen von

Copyright:

Verfügbare Formate

North American

Sustainable Supply Chain Report

For further details, please contact:

II. Methodology and Approach ................................................................ 6

III. Profile of Respondents ......................................................................... 7

IV. Importance of Supply Chain Sustainability .................................. 9

V. Sustainable Supply Chain Initiatives ........................................... 11

VI. Measuring Supply Chain Sustainability ....................................... 18

VII. Awareness of Sustainability Issues ................................................ 21

VIII. Conclusions .............................................................................. 25

4th Sustainable Supply Chain Summit 2

Annual Revenue ...................................................................................... 7

4th Sustainable Supply Chain Summit 3

Shipper Awareness of Green Programs ......................................... 21

4th Sustainable Supply Chain Summit 4

The rise of Scope 2&3 emissions reduction targets and Life-Cycle

The 4th in an annual series of reports, the 2010 North American

4th Sustainable Supply Chain Summit 5

II. Methodology and Approach

4th Sustainable Supply Chain Summit 6

III. Profile of Respondents

Over 600 professionals responded to the survey. 48% of these

A large proportion of respondents (34%) represented companies with

4th Sustainable Supply Chain Summit 7

The respondents representing shippers covered a broad spread of

4th Sustainable Supply Chain Summit 8

IV. Importance of Supply Chain Sustainability

4th Sustainable Supply Chain Summit 9

Shippers were asked to identify to what degree does another

4th Sustainable Supply Chain Summit 10

V. Sustainable Supply Chain Initiatives

The most notable exception to this was regarding financial ROI, as it

The relative importance of the various drivers remained fairly consistent

4th Sustainable Supply Chain Summit 11

4th Sustainable Supply Chain Summit 12

Responses showed less correlation when it came to the biggest barriers

On the whole, most factors proved to be bigger barriers for shippers

4th Sustainable Supply Chain Summit 13

4th Sustainable Supply Chain Summit 14

Respondents were also asked to identify the green/environmental

In response to this question, shippers reported the greatest levels of ROI

Other notable responses included strategic warehouse/distribution

4th Sustainable Supply Chain Summit 15

Respondents representing 3PLs also reported the greatest levels of ROI

Other notable responses included horizontal collaboration with other

4th Sustainable Supply Chain Summit 16

4th Sustainable Supply Chain Summit 17

VI. Measuring Supply Chain Sustainability

The report also looked at a number of issues regarding measuring

Energy consumption was measured/reported/reduced to the greatest

4th Sustainable Supply Chain Summit 18

Respondents were asked to rank their top reasons for working to

4th Sustainable Supply Chain Summit 19

4th Sustainable Supply Chain Summit 20

VII. Awareness of Sustainability Issues

Respondents were asked to identify their levels of awareness and

There was a much larger degree of participation in the EPA SmartWay

4th Sustainable Supply Chain Summit 21

The report also looked at who is responsible for environmental supply

4th Sustainable Supply Chain Summit 22

The most frequent source for all respondents was in sessions at

4th Sustainable Supply Chain Summit 23