The Inconvenient Truth About 'Green' Supply Chains

Business Wire, Jan 23, 2008

"Tradeoffs exist because most products, manufacturing processes, and supply chains were not designed with sustainability in mind."

DEDHAM, Mass. -- Many consumers and some companies are taking a myopic perspective of "green" initiatives, according to Adrian Gonzalez, ARC Advisory Group's Director of the Logistics Executive Council. In a recently published ARC Brief, "'Green' Asbestos," Gonzalez highlights an inconvenient truth of many 'green' products and initiatives: there are tradeoffs that companies and consumers must acknowledge and address. In other words, many "green" initiatives have negative side effects, even if the net results are positive.

"Tradeoffs exist because most products, manufacturing processes, and supply chains were not designed with sustainability in mind," says Gonzalez. "Although sustainability is weaving its way into the industrial world, change will occur slowly, so companies and consumers will have to manage these tradeoffs for many years to come."

Examples of tradeoffs include the increase in food prices caused by increased demand for corn-based ethanol, and balancing the energy saving benefits of compact fluorescent lights (CFLs) with proper handling and disposal of these mercury-containing products. Gonzalez believes that the benefits of most "green" initiatives far outweigh the negatives. But if these negatives are not recognized and dealt with effectively, are we really making progress? "Taking five steps forward and one step back keeps you moving in the right direction," says Gonzalez, "but eliminating the backward step will get you to the final destination faster and with less negative impact on the environment."

To read the entire "'Green' Asbestos" brief, please visit:

http://www.arcweb.com/ txtlstvw.aspx?LstID=9c4745d9-210b-4e75-ab4b-19c1b74ccd84

Gonzalez also chaired a track entitled, "Sustainability: Creating 'Green' Supply Chains," at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in October. Gonzalez shared his views and thoughts on the CSCMP presentations in an ARC Brief, "Thoughts on 'Green' Supply Chains by a Carbon-Neutral Analyst," which is available at:

http://www.arcweb.com/ txtlstvw.aspx?LstID=2602f6a2-ef81-478c-916b-b0063188cbd6.

More on 'Green' Supply Chains

If you are interested in the topic of 'Green' Supply Chains and would like to stay informed of ARC's research in this area please, e-mail info@arcweb.com

Podcasts/Webcasts:

* To hear additional reflections about this topic, please listen to Gonzalez's podcast, "Thoughts on 'Green' Supply Chains" by visiting: http://www.arcweb.com/C17/Podcasts/default.aspx#green

* Future live event webcasts will be co-produced with Global Logistics & Supply Chain Strategies/SupplyChainBrain.com on "Green Supply Chains."

Speaking Engagements:

* Gonzalez will be participating in the panel session, "The Business Case for Green Supply Chain Management," at the Green Supply Chain Forum, February 7, 2008, in Miami, FL (http://business.fiu.edu/greensupplychain/index.cfm). In preparation for this forum, a confidential survey is being conducted. To participate in the survey please visit: http://rydercenter.fiu.edu/survey/greensc/greensc.htm.> * On April 24, 2008, Gonzalez will present "Sustainability: Creating Green Supply Chains," at the Transplace Shipper Symposium, in Rogers, AR (http://symposium.transplace.com/index.html).

Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value. Further information can be obtained from ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax 781-471-1100, E-mail info@arcweb.com, Web www.arcweb.com.

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