Supply chain management: from strategy to implementation

Manufacturer's are placing new and detailed environmental requirements on their suppliers. Examples include environmental management systems (EMS), design-for-environment (DfE) programs, restricted material lists, take-back commitment, and performance disclosures. These requirements are part of the growing practice of environmental supply chain management (SCM) that offers opportunities for OEMs to reduce costs and manage risk. The first generation of SCM focused on suppliers' policies, facilities, practices and record of regulatory compliance. Newer product-focused supply chain issues involving environmental attributes along the entire product life-cycle are becoming more common. Product-focused concerns include product composition, materials selection, recyclability, product-use, and product take-back. The shift from facility-based to product-based requirements is driven by high levels of manufacturing outsourcing and by OEMs becoming more accountable for the full life-cycle impact of their products. Verification of requirements is emerging as an important strategic issue for the next generation of SCM. This paper uses SCM examples from the electronics and automotive sectors to demonstrate and examine supply chain management issues and opportunities. Emerging issues for the next generation of SCM are identified.