Supply management
 
Analysis of the environmental impact from transportation
 
Use of EPIs in supply chain communication
Background
Working procedure
Experiences
 

Use of EPIs in supply chain communication

The aim of this strategy is to enhance communication of environmental requirements and performance in the supply chain. The strategy is based on an example from the railway industry and it is documented by Industrial Environmental Informatics at Chalmers University of Technology.

Background Printable version of strategy

This strategy describes how environmental requirements and targets can be communicated between different companies in the supply chain, and how the fulfillment of these requirements and targets later can be verified.


Figure Communication of environmental performance in the supply chain

The strategy enhances the communication of environmental requirements and performance between different companies in the supply-chain (see figure above). Furthermore, it effectively provides the important connection between market requirements and the product design. The communication is based on quantifiable and measurable Environmental Performance Indicators (EPIs). EPIs are quantitative expressions of the environmental performance. When introducing environmental issues into business relations it is crucial that the customer and the supplier have the same understanding of requirements and performance. This strategy describes how a common language can be established and utilized in the communication between different companies in the supply chain.

The context in which this strategy was developed and implemented is described in the R&D strategy Design for Environment. This other strategy describes how a design for environment process can be implemented and used within a company, to verify that the requirements and targets which are communicated in the supply chain are fulfilled in the product development process.

Intended users and benefits
The intended users of the strategy are persons involved in the purchasing process. By using this strategy any manufacturer can communicate environmental requirements and targets to their suppliers. The suppliers can calculate the actual environmental performance in terms of the defined EPIs and communicate the results back to the manufacturers. The suppliers can also utilize the same language when communicating environmental performance with their sub-suppliers, and the manufacturers can use the language when communicating with their customers. Hence, the whole manufacturing company can benefit from the result of working according to the strategy since the product will most likely better fulfill their stakeholders' environmental requirements.

Working procedure