| Design
and Management
Core
action areas in supply and broader value chain management
include product design and development, the design of the
chain network, planning supply and demand forecasting, planning
and managing inventories, pricing and margin sharing, as
well as marketing and customer services. All of these hold
often untapped possibilities for introducing environmental
innovations that make perfect business sense.
Take design of the network as example. In the planning
of distribution, transport and logistics, consideration
can be given to greater use of carbon light transport modes,
batch sizing that enables efficiency economies of scale,
and sustainable solutions when exploring options such as
home delivery or customer pick-up in the local neighbourhood.
Value chain management can be a key contributor in the
development and implementation of recognised environmental
and social responsibility principles. Efforts to "green"
the supply chain have shown a growing body of experience
over the last ten years. This can take the form of:
- Screening suppliers for environmental performance (for
example making environmental rating part of the total
rating of the supplier);
- Require an Environmental Management System (for example
auto industry manufacturers are requiring ISO 14001 implementation
and registration from suppliers, which affects thousands
of suppliers world-wide);
- Setting purchasing standards (for example to bar the
purchase of products containing toxic substances);
- Working collaboratively with suppliers on green design
initiatives (including working with suppliers to reduce
packaging and use containers that can be shipped back
for re-use); and
- Providing training and information to build suppliers'
environmental performance management capacity.
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