Introduction

A growing number of companies realise that to achieve their environmental goals and satisfy stakeholders' expectations, they need to look beyond their own facilities and to involve their suppliers in environmental initiatives. Examples of supply chain management include screening suppliers for environmental performance, working collaboratively with them on green design initiatives and providing training and information to build suppliers' environmental management capacity.

Working with suppliers on environmental issues not only generates significant environmental benefits, but also opportunities for cost containment, improved risk management and enhanced quality and brand image. Leading companies understand that customers (and other stakeholders) do not always differentiate between a company and its suppliers and hold companies accountable for suppliers' environmental and labour practices. In addition, many companies are working to streamline their supply base and develop more co-operative, long-term relationships with key suppliers, a practice that has fostered greater opportunities to work together on environmental issues.

Key elements

• A strong, high-level corporate commitment to environmental stewardship and top-level management support for supply chain initiatives;
• Cross-functional integration involving all the different areas within a company that can gain value from interacting with suppliers (such as procurement, environment, manufacturing, marketing, research & development, and distribution);
• Incorporation of environmental issues into existing supply chain management activities and design, procurement, and distribution processes;
• Effective processes for targeting which suppliers to involve in environmental initiatives;
• Clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations.

Further Information

National Association of Purchasing Management, Inc. (NAPM) [http://www.napm.org] - NAPM is the key professional trade association for purchasers that serves more than 40, 000 members through a network of over 180 affiliated organisations. The Center for Advanced Purchasing Studies (CAPS) is the organisations' research affiliate. NAPM's website provides a large number of detailed product and membership information; links to regional offices, CAPS and purchasing resources; and access to the latest national Report on Business®, a monthly survey of purchasing trends.

Chemical Strategies Partnership [http://www.chemicalstrategies.org] - The Chemical Strategies Partnership (CSP) is promoting chemical use reduction through a new model in customer-supplier relationships where chemical suppliers are rewarded for chemical service instead of chemical sales. The CSP Program helps a manufacturer evaluate the efficiency and costs of its current chemical management system. CSP is expanding the website to include a step-by-step Manual of the CSP program. The Manual helps companies assess whether they want to implement a chemical services program, how to recruit a chemical service provider, and how to develop financial incentives.

Consortium for Supplier Training [http://cst-sct.org] - The Consortium for Supplier Training (CST) is a group of companies that have partnered with universities throughout the country to provide training to their suppliers and other companies. The Consortium for Supplier Training's website offers a description and background on the Consortium for Supplier Training, descriptions of the benefits of CST membership, location of CST training centres, and contact information for CST members.

Supply Chain Working Group - Business and the Environment Program: Business for Social Responsibility [http://www.bsr.org] - Business for Social Responsibility (BSR) is serving as a convenor for the Supply Chain Working Group, a group of companies interested in sharing ideas on how to improve economic and environmental performance in their supply chains. The group is working with BSR to identify leadership company practices in supplier environmental management and to create new and better tools for implementing and measuring the results of supply chain management programs.

 

Go to Possible Solutions Index Page

ABOUT UNEP | SITE MAP | SEARCH | CONTACT US | HOME | DISCLAIMER

Last Update: 10 August, 2001