Green with Envy is exactly what you might be if you don’t follow in the footsteps of some of the most innovative sourcing organizations and, simply put, go green. For those of you who follow e-Sourcing Forum, you might have picked up on this trend after reading Green Suppliers, Will Kermit Change His Tune?, and Go Green and Save 30% or more!. (Even Supply Excellence decided to get in on the action.) Today we’re going to recap the many benefits beyond just helping the environment.
- Waste Reduction Initiatives that result from green policies can save you hundreds of millions of dollars. Interface, Inc., the world’s largest carpet manufacturer, was able to save $260M.
- Green Buildings will save you significant energy costs, improve the environment, and even improve your health. (Fresh air with increased oxygen content is the best cure for the new wave of environmental illness that results when some people are locked in closed steel and concrete buildings with stale air for long periods of time.
- Green Buyers can avoid environmental taxes and resultant cost increases. For example, some Chinese chopstick exporters are slapping a 30% hike on single-use disposable wooden chopstick prices in response to a 5% tax levied by the Chinese government to try and slow deforestation.
- Green Products improve market share. Recent sales figures show that Toyota, Honda, and other Asian manufacturers claimed a record 40% of the U.S. market, thanks in large part to sales of more fuel efficient and environmentally friendly hybrid vehicles. Starbucks has been proactively sourcing growers that commit to fair labor practices, fair pay, and environmentally responsible cultivation methods – and they keep getting bigger everyday.
- Green Policies can reduce production cycles. JCI recently began producing door panels using a method that eliminates the need for adhesives and reduced supply costs as well as production time.
In other words, the benefits to going green extend well beyond making tree-huggers happy – and go right to your bottom line!
Involved with or know of other examples of green sourcing? Feel free to email me: thedoctor<at>sourcinginnovation<dot>com.