DC Velocity - June 2011

ductivity, getting more out of what you are doing,
and using fewer resources—particularly non-
renewable resources. It is really about looking at
things from a holistic point of view and not just
for the short term.”
Social responsibility comes into it as well, he
says. “Part of sustainability is doing the right
thing by the people in your company,” Rogers
says. Among other things, that includes ensur-
ing good working conditions and promoting
employee safety and wellness.

SHOWING THE WAY

As for where the sustainability movement is headed, Rogers says adoption will likely be more evolutionary than revolutionary. It took time to bring Corporate America on board with the quality movement, he says, and it will probably be the same with sustainability. Nonetheless, he expects to see sustainability widely incorporated into supply chain processes and strategies over the next several years.

In fact, a number of companies
in the logistics space have already
taken major strides in that direc-
tion. One such company is
Kenco recently signaled its commitment to sustainabil-
ity when it named Deni Albrecht as its first leader of sus-
tainability. Albrecht says his appointment “brings to the
forefront a concern that has been in the background for
several years.” He credits Rogers, who has worked with the
company on its sustainability initiative, with helping
foster Kenco’s culture of sustainability, and he
echoes Rogers’ broad view of what it entails. “The
vision of sustainability in business is almost end-
less,” he says. “It is about doing the right things and
doing them efficiently.”
Kenco is now working with customers on a variety of proj-
ects aimed at reducing energy consumption, transportation
costs, and waste, according to Albrecht. “We pride ourselves
on partnering with people of like vision,” he says. It’s not a
one-way street, Albrecht adds. While Kenco might offer guid-
ance to a customer looking to trim excess packaging, he says,

“we also have some customers showing the way to us.”
He cites GlaxoSmithKline Consumer Healthcare (GSK)
as an example. Last year, GSK installed 11,000 solar panels
on the roof of its Northeast regional distribution center
near York, Pa. The company says it expects the array, the
largest rooftop system in North America, will generate
enough electricity to meet all of the facility’s energy needs.

Albrecht admits that some customers still view sustainability as a cost, but he predicts that will change over time. “Since we’ve started this journey, we’re dovetailing with Six Sigma thinking and using the low-hanging fruit approach. We believe we will get a quick buy-in once we show the dollars in acting sustainably,” he says.

MAKING A DIFFERENCE

Another third-party logistics and transportation firm that
has made a commitment to sustainability is New Jersey-
based NFI. In April, the company launched what it calls
“NFI Impact,” an initiative aimed specifically at reducing
its carbon footprint. In a press release announcing the pro-
gram, CEO Sidney Brown said, “Running a sustainable
business is vital to the health of this company and the envi-
ronment. … Fuel conservation, reducing emissions, solar
energy, recycling, and building to LEED standards: these
are our guiding principles as we move forward and con-
duct business.”
While the initiative itself is new, NFI’s commitment to
sustainability is not. The company has been working to cut
back on carbon since 2004, when it joined the
Environmental Protection Agency’s (EPA) SmartWay
greenhouse-gas reduction initiative. Today, a small but
growing number of the vehicles in its truck fleet run on bio-
fuels. It is in the process of outfitting the fleet with super
single tires, which are more energy efficient than tradition-
al double tires. Engine speeds are capped at 62 mph and
idling is limited to five minutes in order to maximize fuel
efficiency. The company’s sleeper tractors are being
equipped with battery-operated auxiliary power units to
further reduce fuel consumption and emissions. Most of
the fleet’s tractors use synthetic oil.

The company has also started its own renewable energy business, NFI Solar, which has already outfitted two of the company’s office buildings with solar panels. It intends to add solar panels to those DCs whose roofs are strong enough to support the heavy solar arrays.