| Be Flexible, Save More Money | |
| posted 02-27-2009 |
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In a recent post on the impact that corporate sustainability programs can have in driving bottom line savings during an era of shrinking top line revues, a commenter asked for a follow-up post on the tactics leading organizations are using to achieve results. Great request and I’ll do my best to oblige. One of the first steps many successful organizations have taken is to break themselves of their traditional methodology. As Jason Busch pointed out in a Spend Matters Perspective titled Redefining Sustainability: Saving Money, Reducing Risk & Going Green, organizations employing their typical sourcing processes “actually paint themselves into a high cost corner from which it can be difficult to escape” because they “often limit options rather than create possibilities.” Jason lays out five strategies that leading companies are utilizing, which include creative thinking (by the sourcing organization AND suppliers), technology and establishing sustainability as a supply management issue. Sage advice and the entire Perspective is well worth a read. HP is one company that’s utilizing technology to drive adoption, reduce carbon emissions from travel and deliver cost savings. When an employee attempts to book travel via their T&E tool, the system prompts them to forgo the flight and utilize their state-of-the-art Halo telepresence studios for meetings across multiple teams and locations around the globe. Technology intervenes to prevent costly, time consuming travel AND it provides that alternative - a very slick real-time video conferencing system. There is one additional tactic I would emphasize for companies looking to create sustainable sourcing and savings programs. Never underestimate the power of potential savings to sell your efforts internally. Before Cisco fully implemented their carbon reducing travel alternative programs two years ago, their CEO was already extolling the virtues (over half of all Cisco’s carbon emissions were from air travel) and predicted savings ($100 million annually - approx. 25% of their entire travel budget) to the press. With the CEO sold on the program, adoption and results quickly fell into place. In fact, they actually cut travel expenses by $150 million in the first year AND were so sold on the program internally, that they now use the same theme to market their WebEx services to small businesses looking to cut costs, save time and reduce carbon emissions. The opportunities are out there. It’s a matter of breaking free from processes that stifle innovation, embracing new technology and touting (and of course delivering on) the potential benefits. UPDATE: I would be sorely remiss if I didn’t point out some of the great tactical advice and case studies my SE colleagues have posted here, including Ellen Terchilla’s synopsis of Starbucks CSR program, Kimberly Davis-Gerst’s Green Sourcing RFx Template and Tim Minahan’s primer for starting down the path of a sustainable supply chain. And if you are still hungry for more, I suggest browsing the Enviro/Social Sustainability category.
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