Monday, September 30, 2013

Environmental Goals in the supply chain strategy.

     This week's focus on the role of technology and the web in global supply chains proved to be interesting.  I found this article to be interesting because it brings up an aspect of the supply chain that I hadn't previously considered.  Most of the literature I have read on supply chain focuses on its effect on profits, but what else can the supply chain affect?  Hewlett Packard is becoming the first company to set emissions goals as part of its supply chain strategy.  Specifically they will:
  • Expand their Energy Efficiency Program for manufacturing suppliers
  • Institute specific emissions reduction initiatives with suppliers with greenhouse gas intensive operations
  • Create production transportation-related efficiency initiatives
All of this is supposed to prevent 2 million metric tons of greenhouse emissions by 2020.  This is a significant number and is a of great benefit to the environment.
     Seeing HP's focus on emissions made me wonder will efforts to optimized the supply chain strategy for the environment increase?  I thought back to the case we read about the company that worked to make their office chairs business sustainable as one example.  I know that it will vary by industry and company, but it is interesting to see how an IT company is changing the supply chain of many other companies indirectly.  They supply a lot of businesses with technology and other services.  Utilizing HP can allow companies to optimized profits and have a positive effect on our environment.  I think efforts like this will be greatly increased in the future.  I feel that companies, especially those involved in healthcare, have an obligation to do everything to sustain our environment.  It is just interesting to see a global company like HP state actual emissions goals as part of its supply chain strategy.

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