Water Management: Where Does it Fit in the Supply Chain?

Taiga Company   
February 10th, 2011

Credit: WikiMedia

By the Taiga Company

A growing focus on sustainable supply chain management over the past few years has proven to be a big opportunity for many businesses.  With traditional procurement strategies primarily focused on cost savings through vendor reduction, leverage spend, inventory reductions, transaction efficiencies, a shifting sustainability mindset is elevating supply chain thinking.  Stakeholder expectations have called for greater transparency, specifically increasing risks from lesser known and managed environmental sources like water.

Today, more strategically-focused organizations are evaluating business sustainability risks that extend beyond the walls of the company.

•    Globalization has extended the once arm’s length supply to sources from around the world, in many cases decreasing process control.

•    Proposed regulatory measures imposed by government entities is raising awareness of carbon emissions and other waste streams.

•    Increasing eco awareness and shifting expectations among consumers is creating market risk for many traditional businesses.

•    Supply side capacity constraints on sustainable supply could make it more difficult to meet demand requirements.

To manage the risk, business sustainability leaders are utilizing environmental business intelligence to define and manage supply chain inputs and processes outputs.  New in the area of water management, Climate Earth recently launched what it calls “the first cradle-to-gate solution for managing direct and indirect water usage.”  Aimed at increasing water usage visibility across the supply chain, companies armed with additional water information are able to target quick hits, opportunities for process improvement, and drive supply chain compliance.

Realizing the growing risk and unique value opportunity, many companies are now building sustainable supply chain management as a strategic in-house competency for a competitive advantage. Our sustainability consulting has directly observed supply chain focused companies, like Wal-Mart and IBM, reevaluating business risk (like water) in the supply chain in order to drive greater transparency and business sustainability compliance.

Story originated at the yobo Sustainability; Business, Life, Environment Blog

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