There’s been a great deal of attention lately to the concept of “going green” — finding a more ecologically conscious way of doing business, including procurement. But does it cost money — or save it?

   Going green is catching on with many businesses because it can be a great way to reduce costs, improve competitive advantage and lift companies to Best-in-Class categorization. It’s hard to argue with the stats. Companies that focused on working harder at “going green” saw significant differences in procurement areas, according to an Aberdeen Group report:

• Transportation/logistics costs: 2% decrease
• Supply costs: 2% decrease

How did they do it?

• Small steps like:
• Employee awareness.
• Reducing cross-docking times.
• Assigning responsibility for overseeing “green” efforts to one person.
• Tracking disposal of waste.

Suggestions for areas you could check today:

• What do use for packing materials? Styrofoam? Consider trying something a little more ecologically conscious, like crumpled heavy-stock paper.
• Is there a way you can reduce the time trucks spend idling at receiving? See if there’s a way to stagger deliveries as a way to reduce excess emissions, and
• Do workers favor bottled water? Maybe you should get a water cooler, as a way of reducing the toll on the environment.

Tags: going green, logistics costs, supply costs