A Greener Set of Supply Chain KPIs

Sept. 12, 2008
New KPIs include energy and water consumption as well as CO2 emissions.

As part of its forward-looking "2016: The Future Supply Chain" project, consulting firm Capgemini has developed a new set of key performance indicators (KPIs) that measure supply chain sustainability. The new KPIs include:

Energy consumption. These measurement will help manufacturers track their adoption of renewable energy sources, with the aim of using less energy overall in their operations.

CO2 emissions. The amount of carbon dioxide emitted during the transportation of freight is directly attributed to weight, mode and distance traveled. For warehousing and distribution purposes, the amount emitted refers to the type of energy consumed to operate the facilities.

Traffic congestion. Reflects a growing trend whereby large cities tax (or in some cases, prohibit) vehicles that enter urban geographic regions.

Water consumption. Pay close attention to any government programs that regulate the use of water.

Security compliance. Capgemini recommends that recovery actions plans -- both for information and physical processes -- be integrated into everyday procedures, particularly for warehousing and transportation.

Infrastructure simplification. Based on a measurement of a company's physical footprint, the goal is to optimize the overall space being occupied, and relocating warehouses to more appropriate locations as the situation arises.

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