Firms under pressure to build greener supply chains

Firms' supply chains turning green

Nearly three-quarters (73 per cent) of firms are having environmental requirements imposed on them by customers and partners, according to research.

The survey by the National Computing Centre's (NCC's) procurement guidance arm, The Evaluation Centre, shows that environmental concerns are moving higher up IT managers' agendas.

The study also suggests business leaders in general are taking the environment more seriously, with nearly two-thirds of respondents stating that environmental issues are a very important (34 per cent), or important (30 per cent) concern for their organisation.

NCC Evaluation Centre managing director Steve Fox said that firms were adopting a range of measures, such as undertaking environmental audits, that allow them to measure their carbon footprint and implement a continuous reduction programme.

"Others have introduced waste management and energy consumption drives, reduced packaging, increased recycling and optimised transportation of goods,” he said.

Efforts to improve supply chain operations through significant investments were made in 41 per cent of firms last year, with nearly half (48 per cent) planning further outlay next year. Reducing cost and improving overall service levels were the key drivers.

Another area where companies can boost operational performance is by adopting sales and operations planning (S&OP) tools, and such systems have been adopted by 41 per cent of companies, with a further 13 per cent aiming to implement S&OP.

NCC surveyed 100 organisations, with 26 per cent from the manufacturing sector and 20 per cent from retail, where supply chain issues are critical.