Collaboration in Sustainable Supply Chains

One of the key requirements of successful sustainable supply chains is collaboration. Supply chain collaboration includes practices like sharing distribution to reduce waste. Research demonstrates that a collaborative sustainable supplier “network” outperforms a buyer-centric “mission control” supply chain, resulting in a steady supply over the long term, financial benefits to suppliers and quality assurance. Collaborative approaches to managing supply chain issues can increase efficiency and thereby save costs and increase profits.

Transportation is a significant component of the costs incurred by most supply chains. The role of transportation is even more significant in global supply chains. The success of sustainable supply chains is closely linked to the appropriate use of transportation. One of the ways collaboration can improve efficiency in supply chains is by ensuring that vehicles are not dispatched half-empty. By sharing transportation services, vehicles can increase the likelihood that they are always at or near capacity. Collaboration can help make company supply chains more efficient by ensuring that vehicle capacity is maximized according to regional shipping routes.

Information is at the center of virtually every aspect of business especially in today's dynamic uncertain and highly cooperative environment. Advances in information systems are driving more transparent organizational structures, more strategic alliances, increased emphasis on performance measurement and greater reliance on time-based strategies.

One of the components of the implementation of sustainable supply chain management is information sharing through two-way communication between partners within a supply chain.

The advancement of technology is changing the way companies do business. Companies must harness the power of technology to collaborate with their business partners as never before. A proper IT strategy integrated with a sustainable supply chain strategy can provide a powerful competitive advantage.

Many companies resist collaborative supply chain because they fear a loss of commercial control by working with others. However, in many cases, this fear is largely unwarranted.

By sharing risks across supply chain partners, companies may be able to improve their own performance in increasingly volatile and competitive global markets.

Collaboration throughout supply networks enhance efficiencies and optimize value.

© 2011, Richard Matthews. All rights reserved.

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Working Cooperatively to Improve Fuel Efficiency in the US

Many have trouble reconciling the seemingly disparate interests of government, automakers and environmentalists, but as the new rules on US cars and light trucks, as well as long-haul trucks and buses reveals, diverse groups can work together to produce the best results for all stakeholders.

"These standards will help spur economic growth, protect the environment, and strengthen our national security by reducing America’s dependence on foreign oil,” said U.S. Transportation Secretary Ray LaHood. “Working together, we are setting the stage for a new generation of clean vehicles.”

President Obama reached the agreement with thirteen major automakers (Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo). The United Auto Workers (UAW), and the State of California, were also an integral part of developing this agreement. The Environmental Protection Agency (EPA) and the Department of Transportation (DOT) oversaw the viability of the agreement.

“This is another important step toward saving money for drivers, breaking our dependence on imported oil and cleaning up the air we breathe,” said EPA Administrator Lisa P. Jackson. “American consumers are calling for cleaner cars that won’t pollute their air or break their budgets at the gas pump, and our innovative American automakers are responding with plans for some of the most fuel efficient vehicles in our history.”

The EPA and NHTSA are developing a joint proposed rulemaking, which will include full details on the proposed program and supporting analyses, including the costs and benefits of the proposal and its effects on the economy, auto manufacturers, and consumers. The agencies plan to issue a Notice of Proposed Rulemaking by the end of September 2011. California plans on adopting its proposed rule in the same time frame as the federal proposal.

The EPA and NHTSA are committed to maintaining a single national framework for vehicle GHG and fuel economy regulation. The agencies will conduct the mid-term evaluation in close coordination with California.

© 2011, Richard Matthews. All rights reserved.

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