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Survey: Green Supply Chain Initiatives Impeded by Costs

Companies striving to implements environmentally sustainable initiatives to their supply chains are most constrained by the inability to justify the costs, according to "The Green Supply Chain Study," a survey jointly conducted by CSC, Manhattan Associates Inc., IBM, and Supply Chain Management Review magazine. The survey reveals that 78 percent of respondents - 250 supply chain executives - are either currently implementing or are evaluating "green" supply chain initiatives. Of those evaluating, close to two-thirds report that the greatest barriers their organizations face with regard to establishing these practices is cost justification. Approximately two-thirds of respondents say that waste disposal and recycling are their most important environmental issues to address. Of those currently implementing a program, 40 percent have not yet established a method to measure return on investment. More than 50 percent of respondents say they have a documented plan at the corporate level, and about the same numbers say that at least one senior executive is dedicated to the effort. "Companies clearly need an effective method to identify and quantify high-impact areas throughout their supply chain and ensure their investments are green - especially in cases where those efforts also drive improved profitability," says Brad Barton, partner and managing director of CSC's Global Business Solutions group.

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