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Tuesday, December 25, 2007

Distribution Benefits of Going Green

Like many companies, Sheperd Neame, a UK brewer has learned the benefits of going green.  They are increasing their supply chain efficiency with rout optimization software and other logistics planning tools to minimize their transportation costs and lower their carbon emissions.  That's good for the bottom line, it is good for the environment and it is good for public relations.

Ian Dixon, Shepherd Neame's production and distribution director explained that the investment in new fulfilment software will help the company maximise delivery truck loads, optimise routes so they are as cost-effective as possible and increase customer satisfaction by enabling more flexible and dynamic delivery planning.

"As part of our mission to cut overall carbon emissions in real terms, we are looking to maximise distribution efficiencies. By choosing Paragon, we are able to ensure our vehicles are loaded effectively and that in every case the delivery routes are both practical and cost-efficient."

ITPro: News: Brewery drives 'greener' distribution logistics

Getting product to the right place at the right time with the least amount of fuel spent or wear and tear used on equipment saves organizations real money.  It doesn't hurt that these steps also are better for the environment. 

In many ways the United Kingdom was the father of the industrial revolution.  So there is some balance in UK companies leading by practical example in improving efficiency, reducing costs and decreasing pollution.  Many countries followed in the footsteps of the UK and we have seen production sweep around the world with one country after the next marrying into industrialization.  Now they have received their groomsmen gift in the form of knowledge to do better business.

Many of the environmental negotiations taking place between countries would have the US take on the burden of cleaning up their efforts first before other countries have to suffer the burden or expense.  However, the UK example here illustrates the point that if the US cleans up first, they will save money and become even more dominant first.  Other countries like India or China could seize the opportunity to increase their efficiency now instead of pushing back against something that is good for business.