Environmental Management Systems through Furniture industry

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How to improve environmental management systems in a company? How to decide if a supplier should be changed to improve environmental performance? Which guidelines should be followed? Presentation based on Steve V. Walton, Robert B. Handfield, and Steven A. Melnyk, “The Green Supply Chain: Integrating Suppliers into Environmental Management Processes” (1998)

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  • the industry is fairly concentrated, and a significant segment of the industry could be included using as few as five case studies; several of the key processes in the furniture industry that have significant environmental implications are common to many manufacturing industries (e.g., coating processes using solvent- based paints, solid waste management, zinc plating, paper packaging)
  • the industry is fairly concentrated, and a significant segment of the industry could be included using as few as five case studies; several of the key processes in the furniture industry that have significant environmental implications are common to many manufacturing industries (e.g., coating processes using solvent- based paints, solid waste management, zinc plating, paper packaging)
  • Companies that achieve these higher levels of environmental response accept their responsibility to society as a whole.Based on these possible responses, an interview protocol was developed which asked managers to discuss the role of supplier evaluation, supplier selection, supplier management, new product design, purchasing processes, and inbound logistics in supply chain EFP (environmentally friendly policies).When conducting case-based research it is important to remember that “Sampling involves not only decisions about which people to observe or interview, but also about settings, events, and social processes.” Proactive companies recognized that processes and products must be redesigned to achieve the higher environmental goals associated with leveraging environmental management for competitive advantage
  • On which areas does a proactive company work?
  • The supplier can react in various way to out change policies towards EMS
  • “Design for the Environment” (DFE) initiatives in product design and development processes include activities initiated both by the buying company alone as well as joint initiatives with suppliers. Primarily, DFE activities follow one of two directions: product materials and design processes.
  • Environmental Management Systems through Furniture industry

    1. 1. EMS in theFurniture industryDaniel ColmWalton et al. (1998)
    2. 2. 4 1 32 5
    3. 3. Why Furniture industry?• industry is concentrated
    4. 4. Why Furniture industry?• industry is concentrated• legislation common to other industries
    5. 5. What’s hot?rare wood utilizationsolvents for coatingwaste managementzinc platingpaper packaging
    6. 6. Degrees of EMSResistant adaptation End-of-pipeEmbracing without innovating End-of-pipeReactive End-of-pipeReceptive Process changeConstructive Product changeProactive Vision change
    7. 7. Proactivity«Companies wanting to reap the greatest benefitsfrom their environmental management processesmust integrate other members of the supply chaininto these processes» implementing TQEM.
    8. 8. Areas of EMS activity Materials used in product design Product design processes Supplier process improvement Supplier evaluation Inbound logistics processes
    9. 9. Supplier evaluation tree no Drop S. no Can B. influence no Is S. critical? S.?S. interested in Live with itenvironmental no Improve yes issues? yes compliance, Is S. then integrate S. environmentally yes compliant? Integrate S. in yes EMS
    10. 10. Design for the Environment (DEF) product design design processes
    11. 11. Guideline 1Product design and purchasing personnel shouldwork together to influence environmentalimprovements in their own and their supplier’sproducts.
    12. 12. Guideline 2Product design processes must consider thelifecycle of all materials used in the product,including “cradle to grave” considerations.
    13. 13. Guideline 3Purchasing managers must proactively influencesuppliers’ processes, since liability for non-compliance to environmental regulations extendsto all supply chain members.
    14. 14. Guideline 4The methods used and the criteria emphasizedfor supplier evaluation must reflect the strategicdirection of the buying company’s environmentalinitiatives.
    15. 15. Guideline 5Suppliers must help buying companies changeinbound logistics processes to reduce waste (e.g.,packaging), which in turn can yield an operationaladvantage (e.g., cost and ease of assembly).
    16. 16. ReferenceSteve V. Walton, Robert B. Handfield, and Steven A. Melnyk,“The Green Supply Chain: Integrating Suppliers intoEnvironmental Management Processes”, International Journalof Purchasing and Materials Management (1998)Slides: Daniel Colm

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