Sustainable Solutions for SCM

held in ideal conditions. Goods held in sustainable warehouses are also more secure since security systems are less likely to experience interruptions in electricity access. 2. Protect building from energy price volatility and supply shortages Energy prices rise and fall according to consumer demand. Today, much of the world is in the process of developing its infrastructure. Additionally, war and unstable trading conditions can cause huge price increases and limit access to energy sources. For instance, unstable conditions in the Middle East directly affect the world’s energy markets. Rising energy prices can slow growth in developing countries. In some cases, price increases can halt a country’s growth completely. By generating power from alternative energy sources, sustainable warehouses shield companies against the adverse effects of war and political uncertainty. They provide a dependable energy supply in locations that previously lacked the resources needed to stabilise its energy supply through traditional means. 3. Protect company from evolving energy efficiency incentives Governmentmandates that regulate commercial buildings are becoming increasingly strict where pollution is concerned. Current trends clearly indicate that operating sustainable buildings will be the standard for commercial enterprise in the near future. One such example of government-regulated changes into green operations is the Energy and Performance of Buildings Directive issued in 2010 by the European Parliament and the Building Council of the European Union. Some of the requirements mentioned in this directive are: • By 2020 all new buildings must be able to achieve “nearly zero energy” results and must gain most of its energy supply from renewable resources. • By the end of 2018 each new building owned or occupied by the public must be nearly zero-energy buildings. • By 2020, all buildings must get at least 20% of their energy supply from renewable sources. 4. Improve company’s return on investment There are several economic reasons why a company should consider moving toward sustainable warehousing and distribution centres. Sustainable design provides efficiency improvements and reduces operation cost over the lifetime of a building. CDP’s annual report issued in 2011 stated the following: Operating costs decrease by approximately 13.6% for new buildings and roughly 8.5% for existing buildings. Occupancy of rates increase by 6.4% in sustainable buildings and increase by 2.5% in existing constructions. 5. Sustainable constructions inspire better overall performance Reports from Global 500 companies show a positive correlation between negative returns on equity and abandoning corporate social responsibility standards. Consequently, one can easily understand how owning sustainable warehouses and distribution centres can improve a company’s bottom line.

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