The Iveco way to sustainable supply chain at Eurolog in Berlin
Redesign of supply chain with a view to make it more sustainable still fulfilling customer requirements was the focus of the contribution of Carlo Martinetto, Iveco Supply Chain Senior Vice President, to the 24th German Logistics Congress and the Eurolog, held in Berlin on 22-24 October, promoted by the German Logistics Association.
Talking to an international audience made up of policy makers, corporate leaders and actors of the logistics industry, Carlo Martinetto pointed out efficient supply chain management as an important contribution for achieving the target, fixed by the European Council in 2006, to reduce CO2 emissions by 30% in 2020.
“Up to now – said Mr Martinetto – supply chain design and management have been predicated on the easy availability of cheap energy. But with today’s rising fuel costs and increasing importance on environmental issues, manufacturers can no longer afford to sustain unnecessary costs and ignore negative environmental externalities.”
Martinetto stressed that commonly adopted practices such as just in time manufacturing, low cost offshore manufacturing, and reduction of cycle time using premium freight options have serious drawbacks in terms of environmental impact, due to – for instance – increased number and frequency of shipments as well as increased length of supply chains as a consequence of chasing low-cost manufacturing offshore locations.
New models envisage a differentiated approach – push for standard products, pull for specific product needs - based upon efficiency as defined by customer requirements. “The Iveco way to sustainable supply chain does not rely upon pre-cooked models, rather we aim to serve our customers taking into account their supply chain features as well as environmental issues. Which mirrors the Iveco value of Commitment: taking responsibility in all we do by challenging and improving our working practices with priorities on customer productivity, environmental care and safety”, Carlo Martinetto said.
Iveco designs, manufactures, and markets a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection.
Iveco employs over 24,500 people and runs 28 production units in 16 Countries in the world using excellent technologies developed in 5 research centres. Besides Europe, the company operates in China, Russia, Australia, Argentina, Brazil, and South Africa. More than 4,600 service outlets in over 100 Countries guarantee technical support wherever in the world an Iveco vehicle is at work.
Turin, 26 October 2007