This story is for CEOs who
- Want to meet their sustainability goals without jeopardizing financial goals
- Have to weigh multiple options against capacity, cost, and resource constraints
- Need expert and objective guidance to evaluate the impacts of change
The Challenges
A company that creates the batteries that power electric transportation around the world closely examined its own logistics and wondered if it could do better.
Analyzing data, company resources and goals, and financial impacts to identify best logistics options
SGS Maine Pointe:
- Gathered all relevant data on greenhouse gas emissions, fuel efficiency, labor projections, selected routes, and transportation infrastructure
- Created detailed implementation and operations plans that described the requirements and timing for cross-team training, CAPEX planning, vendor negotiations, and other preparations for change
- Performed a 3C assessment (capability, capacity, and cost) to weight the options: improving or expanding existing transportation facilities or building new
- Negotiated with rail and truck vendors
- Assessed and shared C-suite tools to improve tracking, assign resources, and remove roadblocks
Lessons learned for other executives
- Sustainability can have financial as well as environmental advantages
- Detailed analytics are the basis for objective, data-based, decision making
- Procurement, operations, and logistics must act in concert for the greatest savings
The Results
- Achieved 7:1 ROI annualized benefits to P&L
- Delivered $19.2M annualized savings
- Reduced greenhouse gas emissions 75%
- Increase fuel efficiency 400%
- Analyzed capacity, capability, and cost constraints for various logistics options
- Met company’s financial and sustainability goals with minimum impact on suppliers and customers
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Providing $19.2M Annualized Savings and Lowering Greenhouse Gas Emissions 75% (CS274)
