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A more sustainable supply chain

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How socially and environmentally responsible should your supply chain be? Is it enough to simply comply with rules and regulations? Or should you be taking additional steps?

According to one study, the companies that actually transform their supply chains realize the greatest business, environmental and social benefits. These companies are known as “trailblazers.”

One example: Johnson Controls has developed advanced lithium-ion batteries that are likely to power the next generation of hybrid and electric vehicles. They are smaller, lighter, cost less and last longer than today’s batteries.

To develop the technology, the company built a $4 million laboratory, then formed a joint venture with a French battery maker.

Their investment has paid off in several ways, including a contract with General Motors to develop batteries for Saturn’s Vue—the automaker’s new plug-in hybrid SUV.

— Adapted from “Supply Chain ‘Trailblazers’ Can Reap Rewards,” Lesley Sept, BSR Weekly, www.bsr.org.

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