27 March 2008 | Paul Snell
Companies are examining their transport policy as the first step to improving their supply chain's environmental profile.
According to a study carried out by PMP Research for procurement technology group Evaluation Centre, businesses are reviewing their use of transport both locally and globally. Some are increasing the use of hybrid vehicles, as well as attempting to cut their use of transport generally.
The reduction of packaging and close monitoring of energy use were also priorities for firms.
The survey of 100 organisations in manufacturing, retail, logistics, utilities and IT and telecoms also found more than half of firms believe green supply chain issues are important or very important to their supply chain. Some 45 per cent of firms aim to make "significant" improvements in the next year, with equal priority given to reducing costs and increasing service levels.
It also found 61 per cent of firms are working with key suppliers to improve green credentials.
Only 3 per cent of firms are using RFID tags, with more than a quarter of companies having no plans to start. Excessive cost, lack of standardisation and lack of understanding and distrust were all blamed as barriers to adoption.