Environmental Supply Chain Optimization

Competitive Advantage: Using EHS In Value Chains NAEM 10th Annual Environmental Management Forum October 17, 2002 Lawrence M. Heim, Senior Vice President, Marsh Environmental Business Consulting

What is the Value Chain? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

What is the Value Chain? Marsh Your Company Customer Supplier Manufacture Product Attributes Production Attributes Package Transport Purchasing Specs Inventory/ Sales Consumer Demand/Use Movement of materials/services Movement of information Conversion of materials, services and information into needed product Material Extraction Process Package/ Transport/ Sale

Value Chain Impact on Shareholders ,[object Object],[object Object],Marsh

Value Chain Impact on Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Value Chain Impact on Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Potential for Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

EHS Relevance to Your Supply Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

EHS Relevance to Customer Demand Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

[object Object],EHS as Competitive Advantage in Value Chain Marsh Degree of Traditional EHS Effort Required High Low Supply Chain Integration (Supplier Management Only) Basic Compliance (Facility EHS Management) Integrated Value Chain (Engaging Suppliers and Customers) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Degree of EHS Impact and Cost High Low Increasing strategic advantage and cost saving potential Strategic and Savings Drivers

Example: EHS Value Chain Opportunity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Example: EHS Value Chain Opportunity ,[object Object],[object Object],[object Object],[object Object],Marsh

Example: EHS Value Chain Opportunity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Keys to Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Keys to Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Keys to Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Marsh

Environmental Supply Chain Optimization

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Environmental Supply Chain Optimization