Sustainability Initiatives Have Not Slowed from Last Year

Shippers and third-party logistics providers have not slowed down their sustainability efforts this year, with similar levels of activity to 2009.

According to Eyefortransport's recent North American Sustainable Supply Chain Report, about 80 percent of shippers surveyed said environmental issues were either important or very important to their supply chain strategy.

"Difficult economic circumstances have not abated the need for improvement within supply chain sustainability; rather, the data suggests an increased awareness and development of new initiatives," the report said.

The 2010 report found many similar results to the 2009 survey. One thing was notably different from 2009: financial return on investment was seen as the second highest driver of sustainability in 2010, compared to being ninth on the list last year. This shows that companies are seeing more of a link between sustainability and good business practices.

When asked about how much sustainability plays into their decision to do business with a company, the majority of shippers saw it as one factor among many others. However, a higher number placed greater importance on it than those who didn't consider it at all.

Similar to 2009, the majority of shippers believe scrutiny over their company's supply chain sustainability has increased from a year ago, be it slight, moderate or notable.

The report also explored the top reasons for working to measure supply chain sustainability. For 3PLs, the increased importance is on gaining customers, while reputation for social responsibility is more important for shippers.

Shippers reported the greatest levels of ROI from improving energy efficiency and recycling materials. Other areas of success included strategic warehouse/distribution center placement, reducing packaging, emission measuring/ reductions, and using more efficient transport modes.

Meanwhile, 3PLs found their ROI from improving energy efficiency, with reducing miles through vehicle re-routing as the next most successful initiative. Other ways 3PLs saw ROI were through horizontal collaboration with other companies, near and/or green/environmental sourcing, emission measuring/reductions, and using more efficient road vehicles.

What will be the next big thing to push companies to focus on sustainability? According to respondents, firmer legislation and consumer-driven demand are expected to be key drivers in the years ahead.

Eyefortransport surveyed over 600 professionals, including 48 percent shippers, 29 percent from 3PLs, and 23 percent supply chain solution providers.