Supply Chain Brain

front and center in companies’ global supply-chain strategies. Tariffs and quotas are yet another important consideration in their outsourcing plans.

Offshoring has had a serious impact on inventory levels. By relo-
cating production to Asia, manufacturers extended their supply
chains by at least a month. That change necessitated the placement
of safety stock close to consumers, to make up for any production
delays. Forecasts became less accurate at lead times expanded. As a
result, LaPoint says, many companies are now suffering from the
Regardless of distance, companies have to
be able to balance a desire to outsource with
the need to define their core competencies.
“What separates companies today is their
supply chain,” LaPoint says. “That is a true
differentiator.”

reused a dozen or more times. None of the changes in packaging compromised product integrity, Jahnke says.

The Cheyenne distribution center is a model of environmental awareness. Insulation reduces the need for energy-sapping heating and cooling. Solar-powered skylights are hooked up to photo cells that turn off metal haloid lights when they aren’t needed—up to seven hours a day in summer, Jahnke says. The company installed translucent windows on one side of the building to let in more natural light. Sodium vapor lights operate at half power unless a forklift

Greening the Fulfillment Center

For all the talk of carbon credits and long-term environmental goals, there are some short-term steps that companies can take today, to create greener and more efficient distribution centers, says Robin Jahnke, director of fulfillment and corporate services with Sierra Trading Post.

Jahnke uses the phrase “simply green”: a label for the actions that companies can take to enact immediate improvements in the environmental impact of their facilities. They are further motivated by the need to cut costs in tough economic times. The word “ sustainability” has come to describe a company’s financial health as well as its commitment to social responsibility.

Sierra Trading Post is a full-service catalog “mall” for closeout and overstock clothing and outdoor gear. It ships some 2. 5 million packages a year. In recent years, the company has taken dramatic steps to reduce the carbon footprint of its supply chain and distribution center in Cheyenne, Wyo. It worked with a supplier of corrugated cardboard to lower the weight of its packaging by 10 percent. The air pillows that fill out its boxes were also reduced, so that more can be fit into a truck. All of the materials used in transportation and material handling, including aluminum, plastic and the shrink wrap from pallets, are sold to a recycler.

In certain instances, Sierra Trading Post opted for a heavier grade of carton in the warehouse, so that the boxes could be

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