Supply chain pros call for government to help meet industry’s green agenda

Its survey – which polled 100 supply chain execs across a broad range of UK companies – finds 67% agreeing with the assertion, with a peak of 80% in the automotive supply sector. Behind that belief are some serious pressure points – notably widespread difficulties with supply chain visibility (92%) as they become increasingly global and complex, but also shrinking margins (90%). As a result, the survey finds 47% citing cost as a barrier to implementing green initiatives, while 32% agree that an inability to measure results is also hindering progress. Another issue noted by respondents is that, traditionally, manufacturers with global supply chains have been moving products through low cost countries to keep labour and shipping costs down. Now, however, the environmental cost needs to be balanced against decreasing carbon emissions from land, sea and air transportation. And that’s a problem: Infor finds 67% of its respondents saying that they are now even more likely to offshore parts of their supply chain, compared with two years ago. While Asia-Pacific would be the offshore hub of choice for 47%, 53% lean towards Eastern Europe. Other key concerns cited in the survey include issues around introducing new products (89%) and escalating consumer expectations (again 89%). Going green in global supply chains is going to be a bumpy, long term ride.