A recent issue of The Costco Connection, discussing the evolution of house brands, cited packaging and efficiency issues.  A prime example was the design of a "square" jar for cashews that increased pallet capacity by 50%.  That, in turn, saved 600 truckloads a year in transporting cashews alone.  600 truckloads isn't peanuts, even for Costco.

Their liquid detergent bottle design increased pallet capacity by 33% with proportionate transportation savings--and improved consumer utility.  Full disclosure: they're doing something similar with gallon milk containers, but I've yet to figure out how to make the first pour go into the glass and not all over the counter.

These cases led me to two takeaways.  One is that "green" initiatives don't all have to be high-concept, multi-million dollar investments with decades-long payback periods.  We are surrounded by simple opportunities that are the right thing for the environment, for business, and for customers-- provided that we are willing to simplify and focus our visions.

The other is that these kinds of supply chain improvements outght to be what's coming out of better relationships and collaborative problem-solving with suppliers who are able to think in terms of the downstream customer, and the ultimate consumer.  I don't know that to be entirely the case with Costco, but I suspect it is, and other companies have derived similar benefits from close and progressive business relationships.

When the supplier is able to apply parallel solutions for other customers, the benefits become part of a significant ripple effect with positive consequences all up and down the supply chain.  Powerful stuff.

What has your experience been?  Do you have to drive all the improvements, or do your business partners?  Or, do you develop them together?  If together, how do you either limit or promote their application outside of your specific relationships?