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.
By Modern Materials Handling Staff
August 07, 2013 - MMH Editorial

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!

Recent Entries

The Department of Commerce reported that January retail sales were up 0.2 percent compared to December and up 3.7 percent annually at $449.9 billion, and the NRF reported that January retail sales, which exclude automobiles, gas stations, and restaurants, rose 0.6 percent over December and 1.4 percent compared to January 2015.

On the freight shipments side, Cass reported that January shipments––at 1.025––trailed December by 1.3 percent and January 2016 by 0.2 percent. These declines were less than the 4.9 percent drop from November to December, though, and January shipments still topped the 1.0 mark for the 65th straight month in December.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a 0.4 percent decline from November to December, its second straight decline on the heels of a 1.0 percent decrease from October to November.

Carloads saw a 11.7 percent annual decline at 241,680, and intermodal containers and trailers rose 10.5 percent to 262,830

An amendment to the International Maritime Organization’s Safety of Life at Sea convention will go into effect requiring all shippers (importers and exporters) to certify and submit the Verified Gross Mass – the combined weight of the cargo and the container – to the steamship line and terminal operator in advance of loading the container aboard a vessel.

Article Topics

News · Sustainability · Supply Chain · Energy · Education · All topics

About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.

Comments

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