REVERSE LOGISTICS
The Right Service Provider Mirrors Your
Sustainability Efforts
Selection of service providers in the area of reverse logistics is getting more complex for the
companies that are following the “triple bottom line” philosophy. Additional criteria in the
selection process are required to ensure that the relationship between the customer and the
service provider increases sustainability efforts and enhances the value of the network both
upstream and downstream.
—Shibesh Banerji, service supply chain team leader, Tompkins Associates
he “triple bottom line,” a phrase coined by John
Elkington in 1989, has become a guiding principle for corporate strategists of the 21st Century.
Although the term may not be a familiar one, the
T
usage of energy and water as well as environmentally friendly
final disposal of the product, etc.)?
• Supply Chain/Value Network: Will the service provider
enhance the cause of sustainability both upstream (i.e., pri-underlying elements—people, planet and profit—certainly are. mary customer/end customer) and downstream (i.e., all tiers
This means companies are striving to achieve success through of supply base, including logistics service providers)?
financial means, environmental/ green/sustainability efforts, as
well as through social channels.
• Advocacy and Industry Leadership: Will the customer’s
relationship with the service provider drive positive changes
From a reverse logistics perspective, companies that are and establish new industry norms?
pursuing the triple bottom line philosophy, during their serv-
• Leveraging Intangibles: Will the relationship with the
ice-provider selection process need to consider additional cri- service provider act as a catalyst for generating and implement-
teria in order to leverage synergy from the customer and ing new ideas and initiatives toward sustainability efforts?
service-provider relationship. These include:
• Alignment of Vision: Is there an alignment of corporate
The Outlook
vision between the customer’s and service provider’s organi- In 2010 and beyond, the number of companies that publish
zations?
corporate social responsibility reports will grow significantly.
• Brand Equity: Is the service provider known for its sus- This shows that corporations acknowledge their broader role
tainability efforts in the industry? How will the market perceive in caring for communities and the planet.
this relationship?
In order to ensure that their relationships with service
• Processes: Do the processes of the service provider pro- providers help corporations enhance their sustainability efforts,
mote sustainability efforts (i.e., reuse of material, minimal these additional criteria will be crucial for decision makers.
