Sustainability / Associations

Sustainable Logistics

Sustainability is here to stay. If you are tempted to believe that it is just a fad or fashion that will pass, think again. According to the Global Compact Implementation Survey issued last June by the United Nations, more than 70 percent of the private companies surveyed said their chief executives were actively involved in sustainability policy and strategy development, and almost 60 percent of publicly traded companies reported board engagement.

U.S. federal agencies such as the General Services Administration and Dept. of Defense are requiring that companies working with them be able to show output-based, continuous improvement as evidence of their commitment to sustainability. Those who work in the warehouse-based third-party logistics industry also have seen similar requirements growing among their private sector logistics services clients.

In recognition of these developments, last July the International Warehouse Logistics Association (IWLA) http://www.iwla.com announced the first metric-driven, facility-output-based sustainable logistics program designed for warehouse operations in North America, which we call the Sustainable Logistics Initiative (SLI).

The program allows participating companies to report and engage in a rigorous and objective measurement process for each of their warehouse facilities. Continuous improvement of each facility is the benchmark.

The data-collection technology utilized is cutting edge, employing the most advanced Internet-based, easy-to-use tools. We assembled an impressive team to lead the challenge of establishing output-based metrics that will provide the first-ever benchmark for the warehouse-based logistics industry. The entire process is verified by a respected independent organization called The Sustainable Supply Chain Foundation http://sustainable-scf.org.

Many IWLA members have already adopted the practices needed to demonstrate their continuous improvement process in supply chain sustainability. In recognition of this, the program is designed to credit improvements companies have made in recent years. This was done so that those companies who have already proven their commitment to sustainable practices will not find themselves penalized for being early adopters.

For those IWLA members who are relatively new to this field, their participation in SLI will allow them to learn quickly how to adopt sustainable solutions. One important aspect of the program is that the data collected through SLI will inform our industry and our customers on the best and most efficient means to improve sustainable warehouse logistics practices.

The ultimate goal is to provide IWLA members with a way to prove their commitment to sustainable practices using objective standards and measurements that their logistics customers can trust. It will create an additional benefit by showing in concrete terms how the industry is committed to sustainability to opinion leaders and state and federal policymakers, legislators, and regulators.

The SLI was designed to be relatively simple and easy to use. Through a secure, Web-based mechanism, IWLA members will self-report and have data verified in three main areas:

Planet responsibilities—the green aspects of sustainability such as electrical use, fuel and water consumption, and recycling.

People responsibilities—including warehouse operations safety and community service involvement measurements. One of the ways a company can show community involvement is through participation in the American Logistics Aid Network.

Profit responsibilities—sustainability efforts that generate cost savings through increased efficiencies and improved operational excellence. (This enables participants to provide clients with proof of sustainable practices.)

A major advantage is that SLI is cost effective. It does not require substantial allocation of resources by companies to achieve significant progress in making the industry more sustainable and more profitable.

In addition, members who choose to participate in the new program can be assured that their data will be handled with strictly maintained confidentiality at all times by both IWLA and SSFC.

Another important aspect of the program is its educational component, which will ensure that IWLA member personnel are kept up-to-date on technological developments and best practices through seminars and workshops.

The SLI program is available only to member companies of IWLA. wt

Joel Anderson is the president and CEO of the International Warehouse Logistics Association.
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