Lean and Green
Companies are increasingly concerned about the impact of their supply chain operations on the environment, but it can be difficult to balance environmental benefit with cost - the "lean and green" dilemma.
To determine the best lean and green solution, it is necessary to understand
the drivers of cost and environmental impact along the value chain, and how
changing activities and regulatory influences affect this solution.
The issues
- Every step of the supply chain generates costs. The real impact on the profitability of the product, customer or market is not simple to quantify and often not understood.
- Similarly, carbon emissions are generated when raw materials are extracted and processed, when the product is made, flows and is stored, and also when the product is used and disposed of.
- Strategic decision making can be undermined without a true understanding of profitability and carbon impact.
How we can support you
PwC can help identify and prioritise cost-effective carbon reduction measures.
For any product or product family, "Lean and Green" is a modelling approach that can help redesign global supply chains to be cost-efficient, minimise their impact on the environment and deliver products and services on time.
The benefits of Lean and Green include:
- A model to estimate carbon generated for your business and operations
- Agreed priorities within your sustainability agenda
- A set of operational improvements
- A methodology to trade cost vs. carbon
- An "updatable" baseline from operational and carbon discussion
- Ability to scenario plan for future changes, including tax and regulation
- Clear next steps, including an agreed action plan
Case study
We looked at a major retail client's supply operations from supplier to shopping basket, including revalidation of its five-year UK distribution plan. We identified networks that were operating under strain and in some areas hampering sales, significantly reduced operating costs and made substantial CO2 savings.
