Supply chain energy efficiency critical to reducing carbon footprint

New report offers strategies business, government, nonprofits and the financial community can use to boost life cycle energy efficiency.

Latest News

The State of the DC Voice Market
CSX president and CEO E. Hunter Harrison passes away
The Big Picture: Navigation Gets a Reboot for Automatic Vehicles
AAR reports carload and intermodal gains for week ending December 9
Intelligent Lift Trucks, Smarter Business
More News

Latest Resource

The Retailer’s Atlas for Omnichannel Returns
Fueled by e-commerce, the new state of retail is truly an omnichannel one, and companies will flourish or flounder based on how well their supply chain can meet customer expectations.
All Resources
By ·

Companies that want to reduce their carbon footprint need to pay attention to the energy they use as well as the energy used by links in their supply chains, according to a new report.

The University of Minnesota Institute on the Environment’s NorthStar Initiative for Sustainable Enterprise, along with the Environmental Defense Fund, provide suggestions on why and how to reduce energy consumption in a new report, Supply Chain Energy Efficiency: Engaging Small & Medium Entities in Global Production Systems.

Based on a two-day workshop tapping the brains of 31 representatives of energy service companies, financers, retailers, nongovernmental organi­zations, government and academia from around the world, the report provides a look into thinking about industrial energy efficiency within the system of a supply chain, and highlights opportunities for corresponding cost-, reputation- and energy-saving improvements.

“The industrial sector consumes nearly one-third of all global primary energy and the opportunities for improving energy efficiency in the industrial sector are vast,” said symposium organizer and researcher Jennifer Schmitt.

To realize these opportunities we must manage energy across organizations, industry sectors, supply chains and regions, which will require significant new and increasingly more transparent data, common metrics and analytics. Public and private collaboration will be crucial to reduce the transaction costs of implementing supply chain energy efficiency, particularly with regard to credit enhancement, technology provider accreditation and governmental policies.

The report highlights four recommendations coming out of the symposium that span across the many actors involved in saving a kilowatt hour:

1. Engage leading companies to identify high-quality suppliers for pilot supply chain energy efficiency improvements.

2. Create one or more sector-based collaborations for improving supply chain energy efficiency by assembling groups of peer manufacturers within a supply chain and using benchmarking, process capability analysis and best practice sharing to identify and improve energy efficiency and industry competitiveness.

3. Increase transparency and standardization of energy use, audits and supply chain information.

4. Create finance and credit risk approaches and models for portfolio-level energy efficiency and energy management projects.

“These recommendations, coming out of our discussions at the symposium, provide an unprecedented ability to characterize and benchmark sector-level and facility-level energy savings opportunities, share knowledge in ways that allow for the flexible application of technological and organizational information in a supply chain environment, and coordinate resources across regions and across public and private actors,” Schmitt said. “Approaching energy efficiency through the supply chain holds great potential for both carbon and financial savings.”

Click here to view and download a copy of the report.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
The Retailer’s Atlas for Omnichannel Returns
Fueled by e-commerce, the new state of retail is truly an omnichannel one, and companies will flourish or flounder based on how well their supply chain can meet customer expectations.
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Logistics Showcase: Rising to the same-day delivery challenge
Today’s delivery puzzles are very different than traditional DC to store or warehouse to DC puzzles. It’s not just the shorter time frame for delivery; the basic requirements are significantly different and more complex as well. In this session you'll learn how to address same day delivery challenges while also driving down costs and increasing customer satisfaction.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...