Inventory at Center of Green Movement

SCOTTSDALE, Ariz.—JDA Software Senior Vice President of Manufacturing and Wholesale Distribution David Johnson, has pinpointed three major areas on which companies focus on as they move toward lean, green supply chains.

Citing a recent Forrester Research report, Johnson says 12% of U.S. adults—nearly 25 million people—are willing to pay extra for consumer electronics that save energy or come from a company that is environmentally responsible.

“Tools that can help lower excess inventory, determine the optimal ‘right-shoring’ plan and reduce fuel and logistics costs, while lowering overall carbon emissions are in high demand,” says Johnson.

As companies strive to become leaner and greener this year, they will focus on three main areas, according to Johnson. They include:

1. Lower-Impact manufacturing: Companies are moving from push to pull manufacturing, eliminating excess inventory and decreasing carbon emissions from the creation of products and materials.

2. Re-evaluating global sourcing: As the risks and costs associated with manufacturing overseas continue to surface, off-shoring models of the past are being replaced with more efficient, “right-shoring” models.

3. Streamlining transportation: Companies are maximizing the space utilization of every truckload and establishing optimal routes, allowing for lower fuel consumption and fewer carbon emissions.

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