Best practice report: Green Supply Chain Management

July 18, 2014 by BPIR.com Limited

Example Cases

Teckwah Industrial Corporation, Singapore
Logistics and value chain organisation wins quality award

Teckwah, a printing and packaging, logistics and value chain management services company, won the 2006 and the 2011 Singapore Business Excellence Award. The firm used the Singapore Quality Association’s (SQA) Business Excellence framework to assess its performance against objectives and benchmarks, based upon world-class standards of excellence in the following areas:

  • leadership
  • planning
  • information
  • people
  • processes, and
  • customers.

Teckwah followed the SQA framework as it aligned its strategies towards long term growth and sustainability. As a result, it formulated processes and systems to address areas for improvement, and continuously set and achieved higher targets by adhering to best practices. Figure 6, see below, depicts the cyclical nature of Teckwah’s extended supply chain systems. [11]

 

Transportation Insight, LLC, United States
Lean initiatives bring Green Supply Chain award

Transportation Insight received a Green Supply Chain award for delivering lean supply chain solutions to clients. As an example, one client saved US $2.7 million and achieved the following results:

  • 30% reduction in annual in-bound “Less Than Truckload” freight cost savings, which also resulted in lower mileage, reduced carbon emissions, and lower fuel costs
  • 12% annual out-bound parcel freight cost savings
  • 4% savings in annual freight audit costs
  • 39% savings through supply chain sourcing of indirect materials
  • 36% increase in inventory turns. [12]

Dell Computer, India
GrSCM pioneers in packaging

Dell built products on demand to meet specific customer requirements and thereby reduce inventory costs and overheads. Dell also employed a number of initiatives to improve the sustainability of its supply chains:

  • Optimisation of Transportation Networks: waste was reduced by making efficient use of air, land, and sea transportation to receive supplies, ship products, deliver services and accept returns. Average truck loads were increased from 18,000 to 22,000 pounds, and delivery strategies were optimised in collaboration with Dell’s carriers.
  • Product Recycling: Dell aimed to become the greenest technology company in the world with a zero-carbon footprint. Logistics centres recycled packaging dunnage (the paper and plastic used to protect cargo shipments). When customers returned old systems to be recycled, free of charge, they received a discount coupon on their next Dell purchase.
  • Packaging Innovations: Dell pioneered the use of environmentally friendly bamboo packaging for lightweight consumer products, and mushroom-based compostable packaging for heavier products. The company planned to reduce desktop and laptop packaging materials by approximately 10 per cent worldwide, increase sustainable content in cushioning and corrugated packaging by 40 per cent, and ensure that 75 per cent of packaging components were recyclable by domestic users.
  • Reverse Logistics: Dell reduced waste by eliminating the root causes for returns and by making 90 per cent of returned assets available for resale. The remaining 10 per cent of returned Dell products were resold for parts or as recyclable materials (metal, glass, and plastic). [13]

Maersk Line, Denmark
GrSCM at sea

Maersk Line’s ocean transportation services were consistently eight to ten per cent more energy-efficient than the industry average. Maersk deployed standardised methods for calculating and reporting the carbon footprint of their shipping operations, and they supported customers with environmental comparisons for routing options by providing analyses of the shipper’s individual carbon footprint and scorecards. Since 2007, Maersk has reduced the carbon footprint of containers shipped by 15.6 per cent, and has set a goal of achieving a 25 per cent reduction by 2020. Maersk has used specially designed vessels to deliver substantial energy efficiencies to serve developing markets in Western Africa. The C02 footprint per container shipped is 28 per cent lower than the industry average for that region. Maersk’s new Triple E, vessels scheduled for release in  2013, are expected to deliver 50 per cent better performance than existing world-class vessels serving Asia-Europe routes. [14]

Unnamed Global Consumer Electronics Company, United Kingdom
GrSCM increases pallet density

An anonymous global consumer electronics company aimed to reduce the amount of packaging material used for its flash memory products. The initiative was driven by environmental and cost-saving goals, including reducing greenhouse gas emissions, the volume of packaging material, and logistics and shipping costs. By completely redesigning the packaging and using an innovative approach for the product insets and user manual, the electronics company was able to reduce costs by eliminating excess materials and drastically reducing transportation costs. The redesign resulted in:

  • a 50% reduction in paper and fibre use, and up to an 80% reduction for its smallest product
  • a 50% reduction in the amount of plastic used, while at same time maintaining the integrity of the previous packaging solution
  • a 157% average increase in pallet density, and a 45% reduction in shipping costs. [15]
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