This Week on Supply Chain Now: October 12th – 16th

The U.S. Bank Freight Payment Index for 3Q 2021 has been released, and one thing remains clear: spend is up. More specifically, year over year, quarterly freight spend showed the second largest increase ever – rising 32.6% from 3Q 2020. What’s driving the dollars, and what can this increase tell us about the state of the supply chain across the country? Supply Chain Now co-hosts Scott Luton and Greg White recently sat down with Bobby Holland, Director, Freight Data Solutions at U.S. Bank, and Patricia Gabriel, Vice President US Customer Service & Logistics, at Mondelez International, to find out. Let’s review highlights from their discussion of the report – and take a look at what you need to consider moving forward. But first, what is the U.S. Bank Freight Payment Index? The U.S. Bank Freight Payment Index is a free report you can download each quarter to keep your finger on the pulse of freight shipping volumes and spend from both a national and regional perspective. The report uses actual transaction payment data, de-seasonalized and calendar adjusted for maximum comparability. How do I use it? When you’re asking the question, “What happened last quarter?” the U.S. Bank Freight Payment Index…

Scope 3 emissions reportedly account for more than 70% of businesses’ carbon footprints. That huge percentage gives an indication of just how critical supply chain sustainability efforts are to the planet. Thankfully, a growing number of eco-friendly innovations are helping reshape global supply chains. Supply Chain Sustainability: An Industry Imperative in a Changing World It is becoming increasingly important for companies to accurately calculate their supply chain emissions and create an information-sharing ecosystem, according to Matthew Gardner, co-founder and managing partner of Sustainserv, a consulting firm that helps businesses implement sustainability strategies. Gardner said accounting for supply chain-related greenhouse gas emissions includes such challenges as: Data gathering of “materials, manufacturing processes, activities of second- and third-tier suppliers, and overall data governance and quality.” Calculation methodology that “reflects the realities of raw material sourcing, product manufacturing, transportation and distribution, and other life-cycle impacts that may affect reported greenhouse gas totals.” Supplier relationships, which can be strained as a result of emissions assessments. Businesses also need to keep in mind their relationships with consumers. PDI Technologies said 80% of U.S. consumers it surveyed were willing to pay more for sustainable products. “Between these statistics and the regulatory conversations that are happening in…