Going Green?

According to the Environmental Protection Agency (EPA), “The most effective way to reduce waste is to not create it in the first place. Making a new product requires a lot of materials and energy - raw materials must be extracted from the earth, and the product must be fabricated then transported to wherever it will be sold. As a result, reduction and reuse are the most effective ways you can save natural resources, protect the environment and save money.”

What the EPA doesn’t have on their website is an idea on how to reduce perpetual inventory in a corporate setting. They suggest things like product maintenance, recycling material or buying secondhand. That could work in some industries and is particularly relevant to packaging. Frankly, that’s important, but most supply chain professionals will have significantly more impact on emissions if they consider the impact they have in the supply chain world.

Excess and obsolete inventory has a few different standards of excess stock ranging from 5-25% based on industry.?Every single unit of inventory can create an incremental increase of consumption of natural resources. Every single item can also carry secondary usage of other products like an additional shelf, light, forktruck, air conditioning unit, and label. These are not only costs, but environmental burdens.

Ways that RSI helps you go green!

1. RSI can make sure you bring in only what you need to!
2. Reduce Expediting
3. Model Transportation aggregation vs. Inventory Space
4. Assess Shelf life risks to reduce scrap

Bring in only what you need to!

RSI will recommend inventory parameters that typically lead to at least a 15% reduction in inventory while increasing your service level! Sometimes this means not having to open another warehouse. That’s a huge savings for the environment and the P&L!

Reduction in expedites!

RSI clients see a reduction in expedites by 99% in which case it reduces every additional flight or small batch of expedites. Also, expedites may be delivered in less efficient packaging, also contributing to waste!

What-If modeling to answer the question, “What if I moved to weekly instead of daily shipments?”

Every reduction in shipping is one less vehicle or sea vessel going around the world, plus your shipping cost might reduce too! You must balance this against the additional warehouse and storage costs, but we can model it for you! Some supply chains might have a mix, and RSI can let you model which situation works best for your customer and the environment.

Shelf-Life Risk?

RSI offers a shelf-life risk tool that allows you to see items that a level of demand does makes an item expire before it turns over to the customer. Expired product is typically thrown away and disposed of. You want to be able to get rid of that material quickly! If material won’t sell, RSI can identify the ideal service level to reduce scrap due to expired products.

We all have responsibilities to our supply chains and efficiency, but oftentimes what is good for the planet can be good for the bottom line. RSI can make sure the right parts are in the right place, without compromising working capital or delivery to the customer.

Use RSI today to improve your bottom line and go green!