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UPS Chief Operating Officer Talks Sustainability Strategy (Decision Green)
Tom Andel, Sustainablelifemedia.com
January 12th, 2009
The sagging economy is spurring UPS to step up its sustainability efforts, says company COO David Abney.
In a recent interview with Modern Materials Handling, Abney said:
I can't speak for companies that are holding on for dear life in this economy, but in our case the economy is making us more hungry and more eager to find ways to conserve energy and reduce waste. It saves us real dollars if we can operate more efficiently. Some of Abney's favorite green initiatives?
Hydraulic hybrid trucks, which are partly powered by energy recaptured from braking. The company is testing "seven or eight" of these units over the next 18 months, Abney says.
Paperless printing and invoicing, which Abney says saves UPS millions of dollars and more than 14,000 tons of paper each year.
A Wal-Mart-style personal sustainability program for UPS employees. Called "Decision Green," the internal program features a secure website that encourages employees to find and share ways to reduce energy use at work and at home.
Abney pooh-poohs the idea of going back to a more localized distribution model as a way to boost efficiency, however. "For the most part that train left the station a long time ago," he says. "When fuel was at its highest there was more talk about near-sourcing, and we're seeing a little of that, but what we're seeing people look at more than anything else is how they can deal with the risk they have."
"We believe if customers can effectively manage their risks they can quickly move from a defensive strategy to one that creates competitive advantage, so no matter what situation comes up they're ready for it."