Continuing our discussions around sustainability, job site impact is top of mind as we finish the expansion of our office. The contractor has been diligent in specifying material dimensions that minimize waste during the installation process. Waste at the job site has become a cost metric that impacts sourcing decisions when determining which vendor will supply the material for the construction project. The impact upon the supply chain is determining the packaging type and its structure based upon the amount of waste it may generate after installation of the material.
Products that minimize waste and keep contractor costs lower will be given preference over vendors using packaging that is not eco-friendly and generates fees for disposal of the packaging material. The challenge for shippers and supply chain professionals are routing shipments to minimize handling in order to maintain the integrity of the packaging. Mode selection becomes critical as factors outside of shipping costs are weighed in selecting the proper carrier mode for transport. This holistic view is often forgotten, pushed aside or not evaluated since freight costs are more easily reported as a line item on the PnL rather than as one component of a much larger puzzle.