Beyond the carbon footprint

Because so many natural resources are being depleted at an increasing rate, it is important that businesses understand these linkages. Some examples of the resource implications of supply chain decisions are described below. 

Clearly decisions on the mode of transport will affect the carbon footprint of a supply chain as will the extent to which transport capacity is efficiently used. Flowever, the nature of the delivery network (i.e. the number, location and design of distribution centres, the use of hub and spoke arrangements, the extent of cross-docking, etc.) can have a wider impact on supply chain sustainability. 

Many companies have used network optimisation models to help determine the shape of their distribution arrangements. Flowever, these models tend to optimise on a narrow definition of cost rather than taking into account the wider resource footprint that is created by the network. A new generation of network optimisation tools is now emerging which take account of the carbon footprint as well as the more conventional costs. 

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