Investment Recovery Marketing 3860 – Purchasing July 28, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University

U.S. Environmental Initiatives  Resource Conservation and Recovery Act – Cradle to grave responsibility  Toxic Substances Control Act – Chemicals on list must be disposed of in chemical waste landfills

U.S. Environmental Initiatives  Comprehensive Environmental Response, Compensation, and Liability Act – Superfund cleanup responsibility  Clean Air Act – Reduce emissions and phase out CFC’s, etc. and reduce auto emissions by 90%

ISO  ISO A set of international standards for assessing a company’s environmental performance  Standards in three major areas Management systems Operations Environmental systems

ISO  Management systems Systems development and integration of environmental responsibilities into business planning  Operations Consumption of natural resources and energy  Environmental systems Measuring, assessing and managing emissions, effluents, and other waste

Advantages of Selling Scrap, Surplus, and Waste  Additional income  Pollution reduction  Conservation of raw materials  Avoidance of landfill tipping fees  Access to Green markets  Convenience

Recycling in the U.S. ($20B+)  60M tons –iron and steel  47M tons –paper & paper board  5.1M tons – aluminum  1.7M tons – copper  1.4M tons – stainless steel  284K tons – zinc  2.3M tons – glass or cullet  745M lb – PET plastic bottles  734M lb – HDPE plastic bottles

What detrimental effects can come from a recycling campaign?

Categories of Material for Disposal  Excess or surplus materials  Obsolete material or equipment  Rejected end products  Scrap material  Waste  Hazardous waste

Disposal Channels  Use elsewhere within company on an “as is” basis  Reclaim for use within plant  Sell to another firm for use on an “as is” basis

Disposal Channels  Return to supplier  Sell through a broker  Sell to a local scrap or surplus dealer  Donate, discard, or destroy the material

Disposal Channels  Use elsewhere within company on an “as is” basis  Reclaim for use within plant  Sell to another firm for use on an “as is” basis

Purchasing and Environmental Performance  Reducing obsolescence and waste of MRO supplies through better mat’ls and inventory management  Reducing the costs from scrap and materials losses  Reducing the training, handling, and other expenses for hazardous materials  Increasing revenues by converting wastes to byproducts

Purchasing and Environmental Performance  Reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems  Decreasing the use and waste of chemicals, solvents, and paints through chemical service partnerships  Recovering valuable materials and assets with efficient materials recovery programs

What environmentally unfriendly or unsound business practices can result from the improper use of these measures?

Purchasing and Environmental Performance  Reducing obsolescence and waste of MRO supplies through better mat’ls and inventory management  Reducing the costs from scrap and materials losses  Reducing the training, handling, and other expenses for hazardous materials  Increasing revenues by converting wastes to byproducts

Purchasing and Environmental Performance  Reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems  Decreasing the use and waste of chemicals, solvents, and paints through chemical service partnerships  Recovering valuable materials and assets with efficient materials recovery programs

Investment Recovery Marketing 3860 – Purchasing July 28, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University