Subscribe to our free, weekly email newsletter!



Sustainability and customer service are key to supply chain success

By Patrick Burnson, Executive Editor
November 10, 2011

One surprising finding in the UPS-sponsored “Change in the (Supply) Chain” survey was that sustainability ranked above well-known issues such as cost and responsiveness.

Sustainability-related findings indicate that companies in Asia are making an investment in corporate social responsibility. Survey results reveal that projecting a better corporate image is the top driver for companies to engage in sustainable practices. Interestingly, while sustainability is a growing priority in Asia, U.S. companies ranked it as their lowest priority in 2010 with only 19 percent of survey respondents identifying it as a top issue driving change.

While sustainability is the top supply chain driver of change, cost reduction is the No. 1 business priority for companies in Asia, especially as costs increase within the region. The majority (63 percent) of survey respondents identified cost reduction as the top business priority for the next 18 months.

Similar to findings from last year’s survey of U.S.-based high-tech companies, high-tech companies in Asia are investing in customer service despite cost concerns.

Achieving higher service levels is both the most frequent change made over the last two years (63 percent) and the change that most companies plan to make in the next two years (67 percent). In addition, 71 percent of companies ranked “better balance of cost and efficiencies with customer service” as a top supply chain priority over the next three to five years.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Putting the renewed strength in the truckload market into a very positive perspective is a report issued by Avondale Partners analyst Donald Broughton, which was released yesterday. Entitled, “Q2’15 Trucking Capacity; Goldilocks Era Continues,” Broughton explained that in the second quarter only 70 truckload fleets failed, or exited the business. That number may seem high to some, but it is not, especially when you consider that the second quarter of 2014 saw more than five times as many truckload carriers, 375 to be exact, exit the business.

Global demand remains stable as packaging equipment providers of all sizes shift focus

Six straight days without a ship waiting for berth

Freight forwarders were relieved to learn yesterday that U.S. Customs and Border Protection (CBP) would be delaying its Automated Commercial Environment (ACE) implementation.

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Article Topics

Blogs · Global Logistics · Global · Logistics · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA