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Environmentally Preferable Purchasing
Selected Rutgers Purchasing and Contract Research ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Construction Furniture Carpeting  Corn Husk Office Panels Industrial Engineering Research   Product Development Electronic Labeling Research   Bar Code Resource Tracking Greenhouse NJ Fresh Local Farm Food  for  RU Dining Svcs Plastics Recycling Research   Packaging Research Waste Mgt/ Recycling Research   Food Recycling (Farm Feed) Green Chemical Research   Lab and  Custodial Supply  Recycled Content Paper Return Research Methane Gas Research (Truck Refueling); Heating   Executive MBA in EPP/Supply Chain Mgt  SCM Research   Biobase Agriculture Product Research (Lubricants Oil, etc.)
Rutgers EcoComplex
Rutgers EcoComplex; Methane Project
Rutgers EcoComplex; Greenhouse Project
RU-Camden Ecological Footprint The ecological footprint is an accounting tool for ecological resources. Categories of human consumption are translated into areas of productive land required to provide resources and assimilate waste products. The ecological footprint is a measure of how sustainable our life-styles are.   Campus size: 14 Acres, 26 Buildings, $50 Million/Yr  Operating within our means? EcoFootprint: 1998 (26 Acres), 1999 (22 Acres), 2000 (17 Acres), 2001 (13 Acres), 2002 (12 Acres), 2003 (10 Acres) Promoting EPP/Economic Development through our contracts: Contributing to the local economy (MBE/WBE, EPP); $50 Million (1998 – $10 million, 2003 - $39 million) Waste Reduction, Energy, Local Procurement, Transportation, Food, etc.
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Influence up and down the supply chain by providing customers with waste saving ideas, proposals, and initiatives  Example: With persistence and cost data, NACHI convinced one of their largest customers to start using a reusable packaging system
Who's Doing It? Andersen Corporation  implements P2 with supplier input and environmental products  Applied Materials , a semiconductor manufacturer, needed a solution to copper-bearing waste water; they engaged several suppliers in design and development of a closed-loop, zero-discharge water recycling system  Ben & Jerry's  worked with suppliers to develop chlorine-free packaging and reduce packaging  In 2000,  Bristol-Myers Squibb  partnered with suppliers in Egypt, Venezuela, and Greece to eliminate use of methylene chloride  Collins & Aikman  work with suppliers to reduce VOCs in carpet products through reformulation of raw materials
Cosmair  and suppliers recycle or reuse shipping containers  Eli Lilly and Company  and a supplier researched and found an alternative raw material for a lead-bearing catalyst  Levi Strauss & Company  works with suppliers worldwide on water quality. More than 35 water treatment systems were built or upgraded at laundry and product finishing facilities. Many recycle the treated water. One launderer in Texas uses the treated water to irrigate an adjacent field.  Herman Miller  contracts with their supplier of PVC vinyl edging, to take back the PVC scrap for re-extrusion into new edging  Maytag  teamed with a supplier on packaging reductions  Nike  seeks partnerships with ecologically responsible suppliers. For example, Nike's Air Sole manufacturing plant diverts approximately 5 million pounds of manufacturing scrap from the waste stream, and 92% is sent to Tetra (currently a subsidiary, formerly an independent supplier), to be processed into new film for Nike's use.
Patagonia  works closely with suppliers to minimize their environmental impacts; including helping them successfully grow organic cotton  Roche Vitamins  and suppliers redesigned their packaging  Royal Crest Dairy  changed to a new supplier who agrees to recycle packaging  SC Johnson Wax  works with suppliers on VOC reduction and packaging reduction  Xerox Corporation  works with suppliers to make "smarter" parts and products for their office equipment, especially to facilitate remanufacture of the Xerox copiers and other equipment at the end of its useful life  Going To the Customer  Ashland Specialty Supply Company  works with customers on product reformulation, distribution, waste disposal, and chemical management  NACHI Technology  implements packaging reduction for customers and offers shared savings through a reduced priced product for the customer
Environmentally Preferable Purchasing Data obtained from the Pacific Northwest Pollution Prevention Resources Center
How Can Environmental Procurement and Product Specifications Impact Supply Chain?   Buyers can use their purchasing power to influence suppliers and help create a more reliable market for greener products. By specifying purchasing preferences for products that have lesser environmental impacts, organizations can spur manufacturers to: use clean manufacturing processes and materials, design for the environment (DfE), consume less energy or water, minimize waste, or create less toxic products or emissions.
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Carefully, clearly and consistently introduce the information to  suppliers and contractors Example:  The Green Business Letter article  "How Supply Chain Management Practices are Greening Procurement"  says not to expect immediate acceptance from all suppliers. It "is not a matter of merely handing down an edict", and some suppliers may tell you to take your business elsewhere. "It's not that suppliers don't want to reduce the environmental impacts ... it's just that many find themselves facing a bewildering array of corporate environmental ... criteria".
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For applicable circumstances, establish an evaluation or  rating system  Examples:   Daimler Chrysler uses an environmental rating system for  their suppliers, to make their final purchasing decisions  See  Supplier Evaluation and Certification  on the EPP  Resources document!
Work to establish long-term relationships and commitments with  your qualified, green suppliers   Example:  According to a study conducted by Business for Social Responsibility (BSR),  Suppliers' Perspectives on Greening the Supply Chain (2001) , many suppliers have responded to requests from their corporate customers to address environmental issues in their products and practices. Several suppliers in this study "expressed frustration with customers who have issued environmental ... expectations which are not reflected in actual purchasing decisions" by their customers.
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Who's Doing It? Bristol-Myers Squibb , a developer of beauty, nutritional and pharmaceutical products, educates their own procurers in environmental costs of products and materials they purchase  Commonwealth of Massachusetts , a state agency, requires suppliers to provide environmental products  Hewlett Packard  on procuring environmentally responsible materials from suppliers  Home Depot (& supplier Collinswood)  pioneered market for certified sustainable wood products  Just a few of  Nike's  purchasing policy mandates include: no wood-derived materials from old growth or frontier forests, and, energy-efficient office equipment  Patagonia , an apparel manufacturer/retailer, specifies organically grown cotton from textile suppliers
The Gap ,  McDonalds , and  Kinkos  require suppliers to use certified sustainable wood  Herman Miller , a furniture manufacturer and service provider, holds conferences for employees and all suppliers on its environmental procurement policies  Daimler Chrysler , an auto manufacturer, rates suppliers and uses this rating to make purchasing decisions  Eli Lilly and Company , creates and delivers medicines. They fine tuned their purchasing specifications to eliminate lead in a raw material, which then eliminated lead content in the sludge.  Quantum Corporation  worked with other electronics manufacturers to develop a database of environmentally restricted substances, which are prohibited (with a few exceptions) in supplier products  Fetzner Vineyards' , a wine producer, published purchasing specifications requiring organic grapes  For Resources; See Resources Document
Show PPT on RU Recycled Plastics Research and Tech Transfer Resources (see Resources Document)

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Ru Collaborative Partnering W Suppliers

  • 2.
  • 6. RU-Camden Ecological Footprint The ecological footprint is an accounting tool for ecological resources. Categories of human consumption are translated into areas of productive land required to provide resources and assimilate waste products. The ecological footprint is a measure of how sustainable our life-styles are. Campus size: 14 Acres, 26 Buildings, $50 Million/Yr Operating within our means? EcoFootprint: 1998 (26 Acres), 1999 (22 Acres), 2000 (17 Acres), 2001 (13 Acres), 2002 (12 Acres), 2003 (10 Acres) Promoting EPP/Economic Development through our contracts: Contributing to the local economy (MBE/WBE, EPP); $50 Million (1998 – $10 million, 2003 - $39 million) Waste Reduction, Energy, Local Procurement, Transportation, Food, etc.
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  • 13. Influence up and down the supply chain by providing customers with waste saving ideas, proposals, and initiatives Example: With persistence and cost data, NACHI convinced one of their largest customers to start using a reusable packaging system
  • 14. Who's Doing It? Andersen Corporation implements P2 with supplier input and environmental products Applied Materials , a semiconductor manufacturer, needed a solution to copper-bearing waste water; they engaged several suppliers in design and development of a closed-loop, zero-discharge water recycling system Ben & Jerry's worked with suppliers to develop chlorine-free packaging and reduce packaging In 2000, Bristol-Myers Squibb partnered with suppliers in Egypt, Venezuela, and Greece to eliminate use of methylene chloride Collins & Aikman work with suppliers to reduce VOCs in carpet products through reformulation of raw materials
  • 15. Cosmair and suppliers recycle or reuse shipping containers Eli Lilly and Company and a supplier researched and found an alternative raw material for a lead-bearing catalyst Levi Strauss & Company works with suppliers worldwide on water quality. More than 35 water treatment systems were built or upgraded at laundry and product finishing facilities. Many recycle the treated water. One launderer in Texas uses the treated water to irrigate an adjacent field. Herman Miller contracts with their supplier of PVC vinyl edging, to take back the PVC scrap for re-extrusion into new edging Maytag teamed with a supplier on packaging reductions Nike seeks partnerships with ecologically responsible suppliers. For example, Nike's Air Sole manufacturing plant diverts approximately 5 million pounds of manufacturing scrap from the waste stream, and 92% is sent to Tetra (currently a subsidiary, formerly an independent supplier), to be processed into new film for Nike's use.
  • 16. Patagonia works closely with suppliers to minimize their environmental impacts; including helping them successfully grow organic cotton Roche Vitamins and suppliers redesigned their packaging Royal Crest Dairy changed to a new supplier who agrees to recycle packaging SC Johnson Wax works with suppliers on VOC reduction and packaging reduction Xerox Corporation works with suppliers to make "smarter" parts and products for their office equipment, especially to facilitate remanufacture of the Xerox copiers and other equipment at the end of its useful life Going To the Customer Ashland Specialty Supply Company works with customers on product reformulation, distribution, waste disposal, and chemical management NACHI Technology implements packaging reduction for customers and offers shared savings through a reduced priced product for the customer
  • 17. Environmentally Preferable Purchasing Data obtained from the Pacific Northwest Pollution Prevention Resources Center
  • 18. How Can Environmental Procurement and Product Specifications Impact Supply Chain? Buyers can use their purchasing power to influence suppliers and help create a more reliable market for greener products. By specifying purchasing preferences for products that have lesser environmental impacts, organizations can spur manufacturers to: use clean manufacturing processes and materials, design for the environment (DfE), consume less energy or water, minimize waste, or create less toxic products or emissions.
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  • 20. Carefully, clearly and consistently introduce the information to suppliers and contractors Example: The Green Business Letter article "How Supply Chain Management Practices are Greening Procurement" says not to expect immediate acceptance from all suppliers. It "is not a matter of merely handing down an edict", and some suppliers may tell you to take your business elsewhere. "It's not that suppliers don't want to reduce the environmental impacts ... it's just that many find themselves facing a bewildering array of corporate environmental ... criteria".
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  • 22. For applicable circumstances, establish an evaluation or rating system Examples: Daimler Chrysler uses an environmental rating system for their suppliers, to make their final purchasing decisions See Supplier Evaluation and Certification on the EPP Resources document!
  • 23. Work to establish long-term relationships and commitments with your qualified, green suppliers Example: According to a study conducted by Business for Social Responsibility (BSR), Suppliers' Perspectives on Greening the Supply Chain (2001) , many suppliers have responded to requests from their corporate customers to address environmental issues in their products and practices. Several suppliers in this study "expressed frustration with customers who have issued environmental ... expectations which are not reflected in actual purchasing decisions" by their customers.
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  • 25. Who's Doing It? Bristol-Myers Squibb , a developer of beauty, nutritional and pharmaceutical products, educates their own procurers in environmental costs of products and materials they purchase Commonwealth of Massachusetts , a state agency, requires suppliers to provide environmental products Hewlett Packard on procuring environmentally responsible materials from suppliers Home Depot (& supplier Collinswood) pioneered market for certified sustainable wood products Just a few of Nike's purchasing policy mandates include: no wood-derived materials from old growth or frontier forests, and, energy-efficient office equipment Patagonia , an apparel manufacturer/retailer, specifies organically grown cotton from textile suppliers
  • 26. The Gap , McDonalds , and Kinkos require suppliers to use certified sustainable wood Herman Miller , a furniture manufacturer and service provider, holds conferences for employees and all suppliers on its environmental procurement policies Daimler Chrysler , an auto manufacturer, rates suppliers and uses this rating to make purchasing decisions Eli Lilly and Company , creates and delivers medicines. They fine tuned their purchasing specifications to eliminate lead in a raw material, which then eliminated lead content in the sludge. Quantum Corporation worked with other electronics manufacturers to develop a database of environmentally restricted substances, which are prohibited (with a few exceptions) in supplier products Fetzner Vineyards' , a wine producer, published purchasing specifications requiring organic grapes For Resources; See Resources Document
  • 27. Show PPT on RU Recycled Plastics Research and Tech Transfer Resources (see Resources Document)