Question

Adopting sustainable supplier relationship management and strategic sourcing perspectives, outline a plan to guide a focal manufacturing firm with the integration of its EMS and LCA activities with its supplier base. You may assume that the power dynamics within the supply chain favor the focal manufacturing firm over all suppliers.

Answer 1

Solution:

Environmental Management System (EMS):

An Environmental Management System (EMS) is a system that integrates procedures and processes to maximize operational efficiencies while reducing the environmental impact. EMS is generally based on standards set by the International Organization for Standardization (ISO) in line with its ISO 14001 standard which follows the Plan-Do-Check-Act (PDCA) methodology. The key steps of the EMS integration would be as follows:

1. Vision - Senior management of the firm and its suppliers would define a collective goal towards ensuring environmental protection and come up with a common environmental policy.

2. Plan - The firm and its suppliers would identify all the environmental aspects related to its operations such as wastes, pollutants, etc. that can result in an environmental impact. Upon identification of these issues, the firm and its suppliers would set common priorities and set clear targets (for example reduce emission by 20% by December 2020). The firm and its suppliers would then create an action plan outlining activities, timelines, and ownership to meet the stated targets.

3. Do - The firm and its suppliers would implement the common action plan by providing necessary training and awareness to their respective employees, develop standardized documentation, follow common operating procedures, and set up proper communication channels.

4. Check - The firm and its suppliers would monitor their respective operations to evaluate whether the stated targets are being met or not. If not, the firm would have to take necessary corrective actions.

5. Act - The firm's senior management along with the supplier management would undertake regular performance reviews to assess the effectiveness of the EMS and ensure continuous improvement.

Life Cycle Assessment (LCA):

Life Cycle Assessment (LCA) is an approach to assess products, processes, industrial systems, thereby minimizing the environmental impact. In order to ensure sustainable and strategic supplier management, a focal manufacturing firm can integrate its LCA activities with its suppliers in the following approach:

1. Define common environmental goals in line with the firm's environmental policy and targets
2. Conduct an analysis of environmental factors such as energy, water, etc. which are inputs and outputs in the current manufacturing process (see attached image)
3. Perform Environmental Impact Assessment (EIA)
4. Assess data from Analysis and EIA stages to select or recommend a preferred product, process, or technology for the firm and its suppliers.