Logistics news: AMR rolls out new initiatives for shippers at its Sustainability and Health Care exchange
The research firm launched its first annual sustainability event, and also introduced a new, health care-specific version of its popular Top 25 supply chain ranking
Sean Murphy, Associate Editor -- Logistics Management, 11/12/2009
BOSTON-AMR Research offered two new initiatives to supply chain executives yesterday connected to health care and sustainability at a pair of exchanges at the Westin Waterfront hotel in Boston yesterday.
The company released a new "Top 25" list tailored to health care at its 4th annual Health Care Exchange, running in tandem with a new event, which AMR called its Sustainability Exchange.
Both events offered panel discussions and case studies in the all-day event. Kevin O'Marah, Chief Strategy Officer at AMR, said the combined event brought in 160 attendees. The sustainability exchange, O'Marah said, will be the first of an ongoing event.
On the sustainability side, representatives of corporations from Nike to PepsiCo to Dow Chemical to GE offered case studies on their sustainability efforts. The message of the day appeared to be: you can save money doing this, too.
Henry Ward, global supply chain director sustainability security and public policy at The Dow Chemical Company, said that through a number of initiatives, including reducing ton-miles and optimizing the distribution network, the company saved $85 million in 2008 alone.
One specific example Ward cited was transport of chlorine. One traditional method is to simply put it onto railway cars in large tanks, but this method is highly risky; a derailed train could cause a major environmental incident.
This, he said, didn't sit well with executives, especially when considering shipping to foreign customers in or near developing countries.
Starting in 1999, Ward said Dow Chemical committed itself to cutting 80 percent of its railway chlorine transport.
"It essentially eliminates the risk to the communities," he said.
The motive may have been to avoid contaminating the environment with a chemical spill, but by reducing the volume of rail freight, Ward said Dow also saved an estimated 200,000 gallons of fuel, $1.5 million in fuel costs, and carbon emissions measured in metric tons.
But the product volume hasn't changed. Ward said the company uses pipelines, production plants built closer to the customer bases, and even buys it from competitors in order to reduce the volume shipped by traditional tankers.
"We are not making a pound less than we were making in 1999," he said.
In addition to the sustainability track, AMR also presented its fourth annual Health Care Exchange. One of the day's highlights was the unveiling of AMR's Health Care Top 25. AMR compiled its list in a similar way to its industry-wide Supply Chain Top 25, which the company has been producing annually for the past five years.
Johnson and Johnson topped the list, followed by, in order, the Sisters of Mercy hospital system, Cardinal Health, Owens & Minor, and McKeason, three distributors and wholesellers of hospital and medical supplies.
Debra Hofman, Vice President, Supply Chain Top 25, said the new initiative, which AMR plans to release annually, was inspired in part by the current health care debate in Washington.
"The time is right. There is so much pressure on the system," she said.
The current debate, Hofman said, draws attention to the need to improve the standard of care in America, a need which has existed for a long time.
"It's a broken system. We know it's a broken system," she said. "So shining a light here is so important."
View All On-Demand Webcasts