There is terrific payback from supply chain design solutions. At GM, the supply chain design team is an in-house consulting group. Annually, the projects they take on save between 5 to 10 percent of the in scope spend. They have done many projects in the logistics area, some on an ongoing basis. Logistics costs as a percentage of revenue decreased every year from 2013 to 2018. That is a remarkable feat in today’s freight environment. Considering the size of GM’s transportation spend, $6.5 billion, and the length of time they have been at this, it would not surprise me at all if this small team has saved GM over a billion dollars.
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The Business Benefits of “Going Green” with Your Supply Chain
In the not too distant past, when confronted with a decision between investing in sustainability efforts versus corporate survivability, the choice was clear for most organizations. However, as the economic recovery has gained strength and consumers have expressed a desire for corporations to focus on these efforts, green supply chain practices are emerging again. Organizations not only view themselves as being able to “afford” investing resources in “greening” their operations but also see that these […]
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