Supply Chain Management: Responding to ‘Offsite’ Environmental Management 2001-01-0306

Product manufacturers are placing new and detailed environmental requirements on their suppliers. These supply-chain management (SCM) initiatives include both compulsory and voluntary requirements, such as requirements for Environmental Management Systems (EMS), Design-for-Environment (DfE) programs, restricted material conformant, take-back commitments, or performance disclosures. In effect, environmental management is no longer limited to site-specific concerns of emissions and waste. Newer product-focused issues now cover issues beyond the site, from product composition, materials selection, recyclability, product-use, to product take-back. In addition, supplier verification of requirements is becoming an important consideration. These trends are illustrated based on experiences and databases with existing company programs in automotive, electronics, telecom, consumer goods and other sectors. A framework for SCM environmental information is outlined, with an eye to demonstrating opportunities and value-added.