Green IT is a term that is becoming increasingly ingrained in the business psyche, particularly as reduced operating-expenditure and capital savings have become welcome fringe benefits of energy-efficient business processes. The supply chain is one such critical function where significant improvements can be made by adopting a ‘greener’ approach. These benefits can include optimized operational efficiency, improved supplier/retailer relationship, both of which can lead to increased profitability across the business.

Operational efficiency

Many businesses still have the antiquated view that you can either be green or have a profitable business. However, the case can now be made that the two are not separate entities and can complement one another effectively. Perhaps the most effective way of ‘greening’ your supply chain is to optimize efficiency. This starts with ensuring that you have visibility across the communications platform, often enabled through automated technology which allows any transactional errors to be quickly identified. From a business perspective, this means that information is shared between suppliers and across the supply chain quickly and simply. This way, communication always remains open and strong. From a green perspective, avoiding such errors can reduce a business’s carbon footprint - fewer errors during deliveries means that there will be fewer incorrect deliveries on the road that need correcting through further shipments later down the line. By getting it right first time, therefore, means that both financial and green credentials benefit.

Improved supplier/retailer relationship

‘Greening’ the business supply chain can have added benefits from a customer relationship perspective. As pressures mount to be as environmentally conscious as possible, businesses are increasingly making a considered effort to partner with ‘greener’ organizations which should eventually have a positive impact on their own customers. Furthermore, from a supply chain communications perspective, sustainable IT which automates and optimizes efficiency is likely to have wider benefits to the supplier/retailer relationship – improved order-to-payment processes and transaction speed are some examples.

Businesses that have successfully implemented a green supply chain strategy can help to demystify the process, and eliminate the perceived barriers that businesses have to implementing these strategies. As more organizations realize that they actually stand to benefit quite substantially from becoming more green and efficient, uptake has begun to increase, as has employee productivity and profit margins.

It is clear to see that the benefits of creating a greener supply chain are not only environmental, but financial as well. However, Inovis believes it is important to ensure that software and services development strategy continues to look for not solely functional and business benefits, but also guarantees recognition of environmental benefits. By facilitating automated communication and making the supply chain an open, visible process, Inovis provides the framework for working towards a greener trading relationship.