Bigger, better, slower, less: a longitudinal case study on the energy efficiency of a global supply chain

Supply chains are highly dependent upon energy that is generated by fossil fuels, but only recently researchers focused on how demand levels of energy in supply chains depend on supply chain strategies and structures (e.g. time-based strategies, global sourcing arrangements etc.) as “generative mechanisms” that influence this demand. Compatibility of global and green supply chain management appears especially critical and trade-offs between economic performance (costs, service levels, sales), energy efficiency, environmental performance are often discussed. This paper presents a quantitative, longitudinal analysis of energy performance indicators and inbound logistics strategy of a company which, in the last few years, reached a “bigger”, global sourcing area achieving “better” productivity and sales performances and at the same time using “less” primary energy for transport. Reducing frequency of deliveries and making up for “slower” deliveries from farthest suppliers with higher inventories appears a means to improve both economic and energy efficiency performances in supply chains under present economic conditions.