Greater Focus on Sustainable Distribution

Thursday, October 22, 2009 by Julie Urlaub
image: sustainable distributionAs the business world actively pursues improvements in the supply chain, many companies are also taking an active role in managing their outbound logistics and distribution processes.  These comprehensive business sustainability programs include not only internal company operations but strategies to address processes that extend beyond the physical boundaries of the business.   Many companies and government entities are addressing the need for efficient, cost-effective, and minimal impact distribution systems.

For the most part, today’s distribution systems rely heavily on the use of air and truck delivery. These transportation modes come with significant environmental and social touch points.   Some of the impacts include:

•    Heavy energy consumption to weight ratios
•    Heavy emissions to weight ratios
•    Increased road and infrastructure costs
•    Large distribution and warehousing footprints
•    Road and air traffic congestion

At the UK’s Department for Transportation, sustainability leaders are developing a sustainable distribution strategies in which road, rail, inland waterways, coastal shipping, ports and airports all play their part in the delivering goods.

In our professional consulting experience, businesses need to similarly develop process of policies to address sustainable distribution practices across all freight transport modes.  Key components of a sustainable distribution strategy include:

•    Sustainable approach to product distribution.
•    Integrated transport philosophy coordinating all transportation modes.
•    Openness to explore alternative transportation.
•    Aligned values with freight and end-customer delivery partners.

The successful implementation of any sustainable business decision takes buy-in and commitment from key stakeholders.  At Taiga Company, our professional consulting focuses on business drivers which create incentives and alignment across the value chain.

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