Supply Chain Brain

operator is present. In addition, Sierra Trading Post is looking to switch from the metal haloid units to T5 fluorescent lighting, a move that will save the company half a million dollars over 10 years. Says Jahnke: “There’s a myriad of things that can be done inside the fulfillment center.”

Global Supply Chains: Still All About Relationships Technology can be a crucial tool in facilitating buyer-supplier transactions, but there’s no replacement for face-to-face contact and personal relationships, says Dan Lynch, director of the Centre for International Trade & Transportation at Dalhousie University.

Lynch shares the results of a recent research project involving IBM and several major universities in the U.S., Ireland and Singapore. They were allowed access to IBM’s top 200 suppliers and products and services. The survey examined the differences among the products, services and cultures that make up IBM’s supply chain.

The findings of the survey underscored the importance of face-
to-face communication among supply-chain partners, even in the
age of the internet. Personal contact remains all-important. “Out of
sight, out of mind,” says Lynch, echoing the views of a typical buyer
in the chain. “You can do a net meeting, but unless you’re here and
have somebody in country, we’re not thinking about you. If you
don’t know the name of my kid’s soccer team, I’m probably not
going to give you business.”
The survey’s conclusions differed according to the types of
products and services involved. Relationships between large high-
tech companies can be difficult to sustain, especially if the parties
cooperate on some fronts and compete on others. “There’s a lot of
animosity and distrust,” Lynch says, adding that companies should
partner in those areas where there interests don’t overlap.

Are Green Supply Chains Really Happening?

Progress is occurring on a number of fronts, says Paul Nuzum, a member of the supply-chain faculty of Denver University. He says the push for green supply chains can result in both lower costs and a better corporate image in the eyes of the consumer.

Going green is more than a case of sprucing up one’s corporate image. Businesses today are realizing that environmental responsibility saves dollars, says Nuzum. He has conducted a number of in-depth interviews about companies’ efforts to create green supply chains.

They are addressing the issue on numerous fronts. The use of optimization engines for transportation can lead to a 15-percent reduction in miles. Better load planning can result in fitting 15 to 20 percent more product on a truck. A shift from long-haul truck to intermodal, wherever feasible, can lower one’s carbon footprint for transportation by around 70 percent. Trucking operations can be streamlined through reductions in idling time, telematics, automated vehicle location systems, satellite tracking and alternative power units. Fleet managers can monitor every detail of a vehicle’s performance, including braking, acceleration, tire pressure, left turns and overall driver behavior.

In the distribution center, companies can install more efficient lighting and centralized energy-management systems. Solar panels can supply a significant amount of power to the facility. At the design stage, buildings can be angled to take maximum advantage of sunlight. Such improvements can generate an additional 20 to 30 percent reduction in carbon emissions, according to Nuzum.