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Published byNathaniel Cornelius Johnston Modified over 9 years ago
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WEC10-031 The Integration of HSE into Supply Chain Business Relationships WEC International Environment Forum London, UK 21-22 October 2003 Tony Lloyd, Eastman Kodak Company
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WEC10-032 Eastman Kodak Company is a large, diverse, evolving multinational organisation $12 billion plus of annual sales $9 billion estimated brand value ~ 70,000 employees worldwide multiple manufacturing locations managing the transition to digital imaging consumer, commercial and health businesses
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WEC10-033 Kodak has a mature, comprehensive and integrated world-wide HSE programme 1911 – works safety committees 1972 – Health, Safety and Human Factors Laboratory 1991 – public environmental reporting 1999 – 5-year environmental goals; WEC award 2002 – Dow Jones Sustainability Index listing global strategies and organisation for HSE –policies; guiding principles; standards; assessment regional and local implementation of HSE programmes –people; product; plant; partners; profile
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WEC10-034 As our business restructures, Kodak’s supply chains are undergoing rapid changes increasing supply of finished or semi-finished goods (outsourcing) frequent acquisitions and divestitures (horizontal and vertical integration) increased use of external service providers (outsourcing) changes to traditional distribution and delivery channels striving for lean production and unified business processes (virtual integration)
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WEC10-035 The integration of HSE into supply chain business relationships is critical for effective risk management suppliers of raw materials suppliers of finished goods designers of products manufacturers of products logistics providers distributors and dealers customers and consumers end-of-life product managers
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WEC10-036 Kodak’s Supplier HSE Programme is a Purchasing / HSE joint venture Objective to minimise the risk of business disruption and liability arising from the puchase of critical materials, parts and products passed on to our customers Current scope HSE acceptability of product and material components –immediate (regulatory) and future (Kodak-assessed) risk HSE acceptability of product performance Tier 1 suppliers (top 80 – 90% of worldwide spend) purchase by contract only contract review for HSE requirements
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WEC10-037 The Programme has both managed our risk, and shared our HSE awareness with our suppliers purchasing “early warning system” for future risks direct transfer of HSE awareness and knowledge up the supply chain Future challenges scope extension –regional and local purchasing; other purchasing mechanisms more efficient use of resources –verification of supplier capability to deliver to HSE specifications –supplier facility self assessment programme
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WEC10-038 HSE and Logistics have collaborated to manage risks arising from outsourcing logistics services Transport of “dangerous goods” highly and prescriptively regulated high risk of delivery interruption if non-conformant high cost of error correction Warehousing and storage segregation of incompatable materials safe management and disposal of defective product overlabelling and re-packaging
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WEC10-039 This collaboration has identified a number of critical success factors for risk management clearly defined HSE roles and responsibilities for Kodak and its logistics partners effective product HSE data and information transfer systems and efficient transfer interfaces HSE expectations made explicit in contract arrangements a mutually agreed process for verification of both parties HSE “performance” –self assessment checklists
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WEC10-0310 Independent photoprocessing labs may now use the Kodak brand, creating new business risks Kodak Express world-wide network all SMEs with limited HSE capabilities exist in all regulatory environments –can not rely on compliance as a sufficient HSE standard are independently owned and operated –not within Kodak’s span of management control can nevertheless impact Kodak’s brand through their HSE performance –employee safety –waste management
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WEC10-0311 To manage these risks, Kodak’s traditional HSE support for laboratories has become fully proactive Local Kodak managers provide documented HSE information and guidance set and communicate HSE performance expectations monitor and assess lab HSE performance make use of our brand contingent on this performance may reward HSE excellence Facilities in less developed countries need new and more effective means of hazard and risk communication
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WEC10-0312 Kodak’s successful recycling model for one-time- use cameras may not fit all end-of-life equipment Many factors affect the cost / benefit analysis –local regulations; local collection and recycling infrastructure; customer value proposition and participation; product mix and volume; functional life; secondary market; design feasibility; technology change rate Success factors for the OTUC programme –guaranteed EOL product capture via the processing laboratory –designed for disassembly and reuse –multiple common components –low rate of technology change –relatively simple logistics –intra-industry cooperation
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WEC10-0313 Many new partnerships will have to be formed to manage EOL products effectively and efficiently with our suppliers of parts and fully finished equipment –to ensure design (and information) for reuse or recycling with our customers –to ensure EOL product capture with logistics providers –to retrieve EOL product from dispersed locations with regulators –to facilitate the storage, transport and treatment of “wastes” with our competitors –to gain economies of scale and enhance EOL product capture
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WEC10-0314 Conclusions the HSE capability and performance of all of our supply chain partners present potential business risks to Kodak these risks must be prioritised for resource allocation, but assessment is likely to be indirect and incomplete HSE expectations should be set within the competence of each partner, and performance routinely verified this competence may have to be enhanced both directly and indirectly without accepting inappropriate liability internal, as well as external, partnerships with HSE are necessary for effective business risk management © Kodak 2003
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