| SCALA Consulting Logistics Debate: What is the reality of environmentally friendly supply chains? |
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The logistics industry has a reputation as major contributors to the greenhouse effect and having significant carbon footprints. The reality is that they are not the biggest sinners. The problem is that transport and logistics are highly visible to consumers! Steve Mulvey, Food Logistics Manager - Marks & Spencer, said “Logistics is not the worst offender by any means, but we are very visible to the general public and lobby groups. We must do our very best and keep focused to achieve whatever improvement we can”. Among the suggestions he made, which M&S is already successfully adopting or seriously considering, were: - Reducing fuel, particularly under current conditions Trevor Ashworth, Director of Food & Retail Logistics of the Co-operative Group said the company’s logistics group was reducing the environmental impact in two areas, buildings and transport. “By introducing greater capacity vehicles we saved 10 million KMS annually. We have also gained benefits from improved engine specs, including 60 vehicles running on compressed natural gas; transport collaboration with supply chain partners saved 650,000 kms in 2007 and already 450,000 kms in the first half of 2008.” Mr Diplock asked: “Are manufacturers likely to reverse recent decisions to make products in Eastern European Countries or the Far East to save on carbon emissions? Will retailers be prepared to cut their margins and buy their goods closer to home?” Paul Steedman, of The Food Ethics Council, congratulated logisticians on progress to date with collaboration; new trucks and planes; bigger ships; and the use of water transport and rail. “We see the power of innovation - more efficient operations, less empty running, CO2 per tonne kilometre down. But are absolute UK emissions falling. But, it is partly as a result of developments like off-shoring and cabotage.” “In the food supply chain, food transport is responsible for just 2.5-3.5% of total UK Green House Gas emissions. But the meat and dairy industry generates - 8%”. Maybe the future is not one of incremental efficiency gains. There will be radical reconfiguring of how people get their food. These are just possible futures, but they could come true”. - Significant relocalisation of food systems, including growing your own
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