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Study: Green supply chains boost bottom lines


NEW YORK According to a new report from Diamond Management & Technology Consultants, companies that incorporate green practices into their supply chain see opportunities for increasing shareholder value.

For example, the study reports that Wal-Mart aims to reduce packaging 5% by 2013, which could save 667,000 metric tons of carbon dioxide from entering the atmosphere and deliver $3.4 billion in direct savings and roughly $11 billion in savings across the supply chain.  

Johnson & Johnson's energy efficiency program resulted in an estimated $30 million in annualized savings over the 10 years prior to 2006.  

"Becoming green is no longer an end in and of itself, but the byproduct of optimizing a supply chain," said Mark Baum, a partner at Diamond who leads the firm's consumer packaged goods practice. "At the same time, transitioning to a green supply chain while also maximizing efficiency is not a clear-cut process."

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