Recently, a member of Bayer’s Supply Chain Optimization team spoke on how to create a greener supply chain. It was stressed that the carbon emissions were only one part of the equation. The analysis had to include other factors such as taxes, exchange rates, oil prices, sourcing, service time, and, of course, costs.
As an example, a project in China is mentioned for the pharmaceutical products: Previously, the supply chain strategy relied on air freight. After many different scenarios were tested, Bayer found a solution with 3 DC’s that reduced lead times, reduced carbon emissions, and kept costs neutral.
Besides projects in Asia and Japan, the Bayer team has used the tool in the US and Europe.
It was stressed that all of these projects are complex and involve careful analysis of the trade-offs.
In fact, it was mentioned that “some questions you want to raise can’t be answered without a tool like LogicNet Plus.”
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