Wednesday 10 October 2012

Cleansing Our Supply Chain

Consumers in India are now getting informed. To maintain brand loyalty, companies need to reduce their harmful emissions and carbon footprints. This is possible only through, efficient and cost effective supply chains. Thus, staying eco-friendly is not only helpful to our planet but also beneficial for business.
Indian government is also taking steps on this front, to reduce carbon emissions. In a recent United Nations conference on sustainable development Prime Minister Manmohan Singh said that India has set a target to reduce carbon emissions of GDP BY 20-25% between 2005 and 2020.
Let us understand why, it is so important, for business as well to stay clean.
Freight emissions are growing tremendously. Over the coming years, freight transport will be among the fastest growing source of emissions expected to rise by 40%. Many manufacturers have become aware and are maintaining stringent control over environmental footprint of supply chain logistics operations. Their selection of production, storage, designing, packaging, and transit time have a massive impact on carbon and other air pollutants along with cost efficiency.  
Some companies have also introduced programs that help them to catch, calculate and manage emissions properly through their supply chains. Above all, public perception of an organization also improves that is cautious about the environment further increasing brand loyalty.
Environment Defense Fund an organization based in USA has formulated 5 principles that can help shippers in lesser pollution and more carbon efficient freight supply. Here are some of them:
·        Reinforce “hotspot” cleanup: All old diesel equipment have less or no control over harmful carbon emissions. They are hazardous to human health. According to World Health Organization, diesel emissions can cause cancer in humans. People who work in areas where there are higher levels of these emissions, such as, ports and railways are more prone to harmful health outcomes. The root cause of these emissions is freight. Hence, shippers are usually held responsible for cleaning these areas or hotspots of diesel pollution.
·        Select the most carbon-efficient mode of transport: Different modes of transport emit different amounts of carbon. For e.g., Planes emit a lot more than container ships and trucks emit more than trains. So wherever possible, use the lesser emitting mode of transport for a more carbon efficient supply chain.
·         Partnering with other shippers: Wherever possible, you could merge your warehouse and distribution resources with other companies or ship your goods directly to the clients. These and some more ways are being used by retailers now-a-days.
As good movement is increasing tremendously over the globe, it is a major challenge to take efforts, to reduce effects of global climate change, and lessen harmful effects on public health. This is especially important, in a country like India, where carbon emissions, harmful effects on public health, changing weather conditions are in abundance.
However, it is still possible to reduce carbon emissions, grow our economy and also have an efficient freight transport.

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