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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About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

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During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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