Waste Not, Want Not: How Paying Attention to Your "Waste Chain" Can Create a Sustainable Supply Chain

Packaging. Packing materials. Crates. Pallets. Tires. Old Equipment. Certainly, your supply chain creates an expansive graveyard of materials. However, the "waste chain," the movement and reduction of discarded or disposed materials in your supply chain, should be a core component of any green or sustainability initiative at your company.

More than just doing the right thing for the environment—reducing, reusing, and recycling your supply chain waste can benefi t your business. For example, companies such as Mohawk Industries and Trex Company have demonstrated the business opportunity in vertically integrating recovered packaging as feedstock in the manufacturing process. Even if you cannot use recovered scrap materials like Trex or Mohawk, establishing a strong recovery system is an essential step in closing the loop between your supply chain and waste chain. Furthermore, with all the recycling and waste recovery businesses, your waste could become another company's supply chain. For example, In 2005, Wal-Mart implemented a plastic recovery program that diverts hundreds of millions of pounds of waste from landfi lls while providing valuable feedstock to manufacturers. There are unlimited opportunities to cost-effectively and effi ciently make your waste chain work for you.