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Introduction
Environmental Health and Safety (EHS) covers
a wide range of environment, health and
safety management issues.
EHS issues are major challenges that face
companies in today's business world.
A major concern is the protection of
employee's health in the workplace, and
today that is addressed with an increasing
amount of federal and local legislation.

Environmental and Safety Issues

in Supply Chain Management
Fadhili Kiyao
Roll No. 18 MBA (FT) 2014/2016
School of Management Studies
CUSAT, Kochi - 22

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Introduction

Environment

In addition companies are becoming more

concerned with the environment in their
communities and where they do business.
As well as local concerns, companies are more
aware of their responsibility of the health and
safety of workers at vendors and facilities
along their complex supply chains.

Each facility that a company owns should be

safe for the employees that work there.
As such each company should have a set of
EHS guidelines that they can use to ensure
employee safety.
These guidelines may be based on federal or
local regulations that determine the minimum
limits on certain key elements.

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Environment

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Environment

Air Quality

Energy Conservation

Air quality is important for the health and safety

of the employees of a facility as well as the local
surrounding community. Companies need an
approach for the management of sources of
emissions that can occur during a manufacturing
process. A manufacturing location can generate
air contaminants such as sulfur dioxide (SO2),
nitrogen dioxide (NO2), ozone (O3), and
particulate matter (PM).
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Companies are not only eager to reduce the

amount of energy they expend to the
environmental aspect, but to reduce their overall
energy consumption, which will improve the
bottom line. Many facilities can reduce energy
consumption by reducing the use of motors,
pumps, fans, lighting systems, compressed air
systems and heating, ventilation and air
conditioning systems (HVAC).
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Environment

Environment

Water Conservation

Hazardous Materials

Reducing the consumption of water is a key

environmental goal for any company, but again,
like energy conservation, reducing water
consumption will improve the bottom line. One
aspect of water consumption that companies are
aware of is that of wastewater. Contaminated
water is harmful to the environment and must be
treated before discharging.

Companies that work with hazardous materials

have to ensure that their employees are safe and
are trained on the how to deal with these types of
materials. Disposal of used hazmats, as well as
plans on what to do in an emergency concerning
hazmats are important EHS topics.

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Environment

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Occupational Health and Safety

Waste Management

Companies have to minimize the risks to

occupational health and safety. The tasks of
EHS are to eliminate any potential hazards, or
minimize hazards that may occur as part of
the manufacturing process.
Biological Hazards

All companies produce waste and it is important

to the environment how that waste is dealt with.
Because of the increasing cost of waste removal,
companies are trying to avoid or minimize
generating waste and considering reuse or
recycling of the waste they generate.

These hazards can represent potential for illness

or injury due to single acute exposure or chronic
repetitive exposure.
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Occupational Health and Safety

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Occupational Health and Safety

Education and Training

Physical Hazards

It is important that all employees are trained in

basic rules that apply at the site, and how to
prevent injuries to themselves to fellow
employees. Any training should include basic
hazard awareness, site specific hazards, safe work
practices, and emergency procedures for fire,
evacuation, and natural disaster.

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In any facility there are physical hazards that can

cause injury, either due to a single event or due to
repetitive use over a period of time. Noise and
vibration can cause injuries due to over exposure.
There should be some measures to eliminate any
potential physical hazards, or minimize physical
hazards that may occur as part of the
manufacturing process.
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Occupational Health and Safety

Community Health and Safety

Chemical Hazards
Similar to physical hazards, a single chemical
exposure can cause injury or exposure to a
chemical over a period of time can be hazardous
to an employee. There are many chemical hazards
in a plant, such as corrosive, oxidizing, and
reactive chemicals, as well as fires from the
ignition of flammable materials or gases.

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The health and safety of the employees is one

aspect of EHS but the community where the
facility is located is also the responsibility of a
company. It is vital that a company ensures
that the processes it uses does not negatively
impact the well being of the community that
surrounds them.

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Community Health and Safety

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Community Health and Safety

Water Quality

Infrastructure

As part of the manufacturing process, water may

become contaminated and it is imperative that
there is no contamination of water sources that
the community depend upon. In addition, there
must also be awareness that the facility should
not monopolize the local water availability to the
detriment of the community.

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The development of the facility should not impact

the community. It is important that the
community should not be impacted by dangerous
structures, traffic, or emissions. Care to include
safety contingencies for the community, for
example in the event of fire, should be built into
the plans for any facility.

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Obstacles to implementation of
environmentally friendly SCM

Community Health and Safety

Trade globalization, off shoring of manufacturing

operations to low-cost countries, just-in-time
deliveries; all these stimulate growth of the
international freight of goods between continents
and countries.
Frequent and prompt deliveries require more
means of transport, whereas the absence of cooperation among companies and processes
coordination result in increased congestion on
main roads.

Transportation
The transportation of materials into and out of a
facility should be examined so not impact the
community. Traffic safety is very important as it is
a leading cause of injuries worldwide. In addition
the transportation of hazardous materials should
be considered when reviewing traffic options at a
facility.

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Obstacles to implementation of
environmentally friendly SCM

Obstacles to implementation of
environmentally friendly SCM

Environmentally friendly transport operations

within the supply chain require an
implementation of resource efficient policies, a
reduction of energy consumption, an
introduction of cleaner energy and a better
utilization of the infrastructure.
There are still obstacles on the way to the
creation of an efficient environmentally friendly
transport system within the supply chain
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The important role to play in the investments

process should have not only regional and
national governances but also multinational
and multimodal logistics operators.
The important role to play in the investments
process should have not only regional and
national governances but also multinational
and multimodal logistics operators.
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Obstacles to implementation of
environmentally friendly SCM

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Obstacles to implementation of
environmentally friendly SCM
Proposed environmentally friendly transport
operations within Supply Chain

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HOW COMPANIES ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

In order to ensure that environmental and

Safety issues are maintained, companies have
taken various measures. The following are
some of the companies that have addressed
their concerns.
Sony
Adidas Group
Vodafone
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HOW COMPANIES ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

Sony

Sony is committed to conducting its operations in

a socially and environmentally responsible
manner and to sourcing from suppliers that share
its values. Accordingly, in order to enable positive
change in its supply chain, Sony works closely with
its suppliers and subcontractors to address human
rights, labor, health and safety, and environmental
protection issues related to the procurement of
raw materials and components
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HOW COMPANIES ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

Sony

Compliance with "Sony Group Code of Conduct"

in Business
Managing Chemical Substances in Procurement
Participation in the Electronic Industry
Citizenship Coalition (EICC)

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Vodafone

Vodafone addresses it priority areas to include the

following: Safety of contractors working on our network
infrastructure in emerging markets (see Health and
safety)
Social and environmental standards in suppliers
operations and factories
Mining of minerals in conflict regions

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Chines Government

Companies doing business in China have had difficulty

maintaining quality throughout the supply chain, as
illustrated by recent food and product safety scandals. For
example, in last years melamine-tainted milk scandal,
inherent problems in manufacturing processes and supply
chains led to a breakdown of quality assurance.
Companies investing in China should be aware of several
potential pitfalls when trying to build and manage supply
chains ethically in China. The PRC Administration of
Quality, Supervision, Inspection, and Quarantine (AQSIQ)
Chinas primary quality watchdoglaunched a food and
toy recall system in August 2007.

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HOW GOVERNMENTS ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

Various governments have introduced

measures and rules to ensure that
Environmental and Safety Issues are
addressed and maintained in Supply Chain
Management. The following are few examples
which show how governments are concerned
with Environment and Safety in Supply Chain
Management.

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HOW GOVERNMENTS ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

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Adidas Group

As our supply chain is large, multi-tiered and

varied, we have a detailed and systematic
approach to managing the relationships with our
suppliers. To enforce compliance with our
Standards we have a multi-level monitoring and
enforcement process in place, including the use of
an innovative rating system for the assessment of
our suppliers.

HOW COMPANIES ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

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HOW COMPANIES ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

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HOW GOVERNMENTS ADDRESSES THE

ENVIRONMENTAL AND SAFETY ISSUES
IN SCM

America

Safety in American warehouses is regulated by a

series of standards from the Occupational Safety
and Health Administration, commonly known as
OHSA. The US Congress created OSHA under the
Occupational Safety and Health Act, which was
signed into law by President Nixon on December
29, 1970. The main focus of OSHA is to prevent
work-related injuries, illnesses, and deaths.
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CONCLUSION
Environmental and safety issues are diversified in
supply chain of all sectors. Supply chain risk has
become a major area of concern for companies in the
agribusiness sector, as well as for their customers,
financiers, and external stakeholders.
Environmental supply chain management consists of
the purchasing function's involvement in activities that
include reduction, recycling, reuse and the substitution
of materials.
Companies can implement a variety of strategies to
manage supply chain environmental risks utilizing
operational and strategic levers.
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