" (Mathes, cited in Reese, 2007)
In its supply chain risk management efforts, Dow Chemical has found opportunities to cut inventory by $160,000 reduce the cost of transporting a particular material by millions a year, improve response time to identify and resolve in-transit problems by 50%, decrease safety stock inventory by 20%, reduce the company container fleet by 20% and improve delivery time windows by 90% (Reese, 2007).
Dow has also responded to customer demand to address challenges such as climate change and to become more socially responsible in its supply chain network (Forging a green chemical supply chain involves deep scrutiny and collaboration, 2009). As this source explains, this company has been an innovator in sustainability. It has maximized equipment loading and increased the use of product exchanges and swaps to help lower mileage and reduce the company's carbon footprint. Dow is currently working on apply its RFID and GPS technologies to further optimize energy usage and resource conservation. To prove its commitment to its customers, it has a Global Reporting...
As is the case with risk management Dow has found its environmental sustainability focus to be quite profitable as well. For instance, it has saved millions of dollars in energy costs after customizing its transportation channel networks.
To meet its strategic objectives, financial performance isn't necessarily the direct objective of Dow Chemical's supply chain initiatives. Still, the company stands out in the crowd because it has proven that managing risk and supporting a green supply chain not only makes it a good corporate citizen, but also an even more profitable entity.
Bibliography
Forging a green chemical supply chain involves deep scrutiny and collaboration (2009, March 30). http://www.icis.com/Articles/2009/03/30/9202919/sustainability-tools-strengthen-chemical-supply-chain.html
Reese, a.K., (2007, April/May). Disaster-proofing the supply chain. Supply & Demand Chain Executive. http://www.sdcexec.com/publication/article.jsp?pubId=1&id=9477&pageNum=1
