Green Profits

The need to build sustainability into supply chains also came into clear focus during the crisis of 2008-2009. Companies found that their critical suppliers were not always in the best of financial health, and when key suppliers folded unexpectedly, buyers were left dealing with the outcome. Sustainability is not just about social or environmental programs but also about creating an end-toend product chain that is efficient, secure, well-capitalized, and around for the long haul. Thus, sustainable supply chain programs should be included as part of broader risk management efforts.

Dale Rogers, professor, logistics and supply chain management at Rutgers Business School, noted in a recent paper: "Clearly, a company cannot stay in business very long without profitability." But he said that this should not be the only measuring stick. There must be a balance between that goal and "doing the right thing".

However, these two goals are not necessarily at odds. Rogers added: "Using fewer resources can also lower costs in both the short run and long run. So it is not enough to think about economic performance or the environment, it is much better to think about the junction of both."

Read the full article