Green IT- The Key to Sustainable Logistics and Supply chain

Green Supply Chains are driven by cost savings and operational efficiency.

End to end supply chain visibility aims to provide right information to the right decision maker at the right time, so that shipments move along the optimal route with the least amount of handling and at the lowest possible cost. Any gap in this information flow raises freight and carbon costs. IT solutions play a decisive role in plugging these gaps and ensure that organizations reap the expected benefits.

Benefits of Green IT Solutions

1. Supply Chain Optimization – IT solutions help to automate the transportation planning process to reduce the effects of unexpected events along the supply chain, as well as ensure transportation routes optimization.

2. Green Supply Chain Realization – IT can help reduce resource usage by streamlining the business processes. Automation and mobility solutions enable dynamic scheduling of transportation tasks and real time tracking. These can help companies achieve paperless processes reducing the need for paper, printing, stocking and transportation of paper based documents.

3. Radio Frequency Identification Device – RFID technology can act as a great enabler of green SCM strategies. RFID tags can carry energy footprints and carbon footprints related information that can help organizations to analyze and monitor their supply chain’s performance against their environmental policies.

4. Green Supply Chain Collaboration – IT solutions that involve all players of a supply chain enable collaborative planning, forecasting and replenishment, thereby adding value to the business. Effective use of these methods result in higher accuracy of forecasting thus reducing the resources consumed in production. This leads to the reduction in the overall energy requirements.

5. Performance Metrics – Efficient software that provides real time performance metrics for accurate measuring and reporting of the carbon footprint, and thereby prompting necessary action.

Recommendations from the World Economic Forum

World Economic Forum has a set of recommendations that reinforces the need for Green IT solutions to successfully implement the green supply chain initiatives.

Recommendations for the logistics and transport providers:

  • Adopt new technologies industry wide
  • Improve training and communication industry wide
  • Develop recycling offerings
  • Promote carbon offsetting of shipments

Recommendations for shippers and buyers:

  • Understand and reduce carbon impact of manufacturing through alternative sourcing
  • Plan to allow slower and better optimized transport
  • Develop recycling offerings
  • Reduce packaging materials
  • Work on product carbon labeling, standards, auditing tools and use
  • Increase shared loading

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