INSIDE
Helping
reduce waste
•Fcmririg.-
Creating
policies
for suppliers .
Government.
United States
Environmental Protection
Agency
Solid Waste and
Emergency Response
(5306W)
EPA530-N-98-Q03
April 1998
www.epa.gov/wastewise
•u I
• 1I
!M if, i
"*m
iWftSTE
SE
'
BUILDING SUPPLIER
PARTNERSHIPS
Printed on paper that contains at least 20 percent postconsumer f
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WasteWise Update
DUllc
ing Supplier
NERSHIPS
GARBAGE IN, GARBAGE OUT refers not only to your
computer but also to waste received from suppliers in the
form of excess packaging, rejected products, and invento-
ry that expires before it is used. While most organizations would
not consciously pay suppliers for garbage, many do just that since
suppliers include the cost of the packaging in all orders. Don't forget, organizations
not only have to pay suppliers for the cost of excess packaging and transportation,
they also have to pay another company to dispose of the waste or depend on commodity
markets for recycling.
Convincing suppliers they should reduce packaging or
change distribution systems is not always easy. Has your
organization encountered any of the following reasons for
not approaching suppliers? If so, this issue of WasteWise
Update can help you by showing how other organizations
have overcome these barriers.
• AAfe don't haue the staff to evaluate options. To
overcome this barrier, one Maytag Corp. facility dedicat-
ed an intern to study the facility's distribution system.
This study resulted in recommended options for cost sav-
ings and waste prevention.
• AAfe cartt influence our supplier
a srrall corrpany NACHI Technology, which employs
only 115 people, convinced its customer General Motors to
change the way it does business—resulting in mutual cost sav-
ings. Similarly, the Minnesota Chamber of Commerce, with
only 26 employees, convinced its caterer to distribute em-
ployee lunches in bulk, thereby reducing waste by 50 per-
cent. What was the caterer's incentive? Maintaining customer
satisfaction and cost savings. In addition, when the suppli-
er for Royal Crest Dairy couldn't provide a returnable pack-
aging system, the company found a new supplier who could.
• Our menagci i« * hasn't trade our suppliers
aware of hcMvirrncrtarfc waste reduction is to
25 percent. SC Johnson Wax hosted a meeting with 70
supplier organizations from around the world to establish
its Partners in Quality program.
Our supplier doesn't know now it can reduce our
•waste To build a team attitude and foster cooperative
efforts, Clorox invited its supplier's shipping and distribu-
tion staff to visit Clorox, and the supplier invited
Clorox's line personnel to visit its plant.
AAfe use rrvltiple suppliers at ead-i of our facili-
ties, each of •which has its own procurement sys-
tem ComEd overcame this barrier by streamlining its
procurement of inventory with short shelf lives. The
company reduced its vendors from six to one, saving
$500,000 in the process.
• Our gc
age
cy is ocmrritted to large
1 corrpany In order to inform suppliers how much
Roche Vitamins Inc. values the environment, the compa-
ny officially requested that all suppliers reduce waste by
purchasing contracts that haue United flexibility.
The Commonwealth of Massachusetts offers advice to
other government partners on how they can use large
purchasing contracts to their advantage.
We hope the information provided in
this Update helps your organiza-
tion to successfully find waste
prevention opportunities
through supplier
partnerships.
The mention of any company, product, or process in this publication does not constitute
or imply endorsement by the U.S. Environmental Protection Agency.
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WasteWise Update
Though Small, NACHI Technology***
Achieves Big Results
You don't have to be a large company
to be a leader in waste prevention
and recycling. Just ask NACHI
Technology. Although it employs a
modest 115 employees, NACHI has
successfully worked with its customers—including
automotive giants such as Waste Wise partner
General Motors (GM)—to implement packaging
reduction and reuse. They've also achieved considerable
savings in the process—almost $55,000 per year.
NACHI manufactures precision ball bearings for the auto-
motive industry. Although a relatively small company, its
product is used in 60 percent of all vehicles
on the road today. NACHI takes its environ-
mental commitment seriously. In fact, it is the
only company in Indiana to have won two
Governor's Awards in the areas of pollution
prevention and recycling.
develop a strategy to implement the changes. This involved
identifying a project champion to lead the effort, and coordi-
nate the project. NACHI worked hard_to show GM that
reducing and reusing packaging was a win-win situation that
offered cost savings to both companies. NACHI also took a
vajue-added approach. Since customers expect high-quality
products, the company showed its customer that it is willing
to go the extra mile. NACHI explained to GM that using
smaller, 40-pound boxes, for example, was safer for GM's
employees and could help reduce the risk of worker injuries.
"Maintaining a close relationship with your customers is
also critical," adds Nebesio. "It's important to keep the lines
of communication open so there's a constant exchange of
information between you and the customer."
"Our company knows that the environment
and the economy go hand in hand," says Dan
Nebesio, vice president of operations for
NACHI. "We've worked hard to show our
customers that waste prevention and recycling
really pay off. Any savings we achieve, we
share with our customers primarily through a
reduced price for our product."
In particular, NACHI worked with GM to make two funda-
mental changes: switching to a more standard pallet size and
adopting a smaller, reusable box with reduced packaging to
ship its product. Convincing GM to make the switch, howev-
er, didn't happen overnight. It was a gradual process that took
roughly a year to achieve. In fact, when NACHI first began
working with GM, there was no discussion of packaging other
than meeting GM's special standards for pallet size and for
the boxes used in shipping raw material and finished bearings.
Now, when making shipments to GM, NACHI simply reuses
the boxes and pallets that it receives from incoming deliver-
ies to its facility. Making this switch allowed NACHI to avoid
the cost of purchasing new boxes and custom-sized pallets.
In the process, the company has gone from emptying its waste
compactor two to three times a week to once every 10 days.
So how did NACHI convince GM to make the change?
NACHI took a multifaceted approach. First, the company
put together a qualified team to work on the project and to
"Our company knows
that the environment
and the economy go
hand in hand."
—Dan Nebesio, vice
president of operations,
NACHI Technology
As an example, after substantial in-house test-
ing of its new shipping method, NACHI con-
ducted several trial runs with GM to work out
any remaining issues. After the new system was
in place, NACHI managers visited GM period-
ically to check in and see how it was working.
In short, NACHI approached this project as it
does all projects that involve its customers—as
part of an ongoing, long-term relationship with
the opportunity to grow and improve over time.
The team also solicited input from the plant
floor. "In my opinion, the best ideas come from
this area," remarks Nebesio. "These workers are
the ones driving the company. Also, if an idea comes from
the plant floor, it's a lot easier for others to buy into it."
Interestingly, the biggest barrier to making the switch was
simple inertia and the attitude that "We've always done it
this way, so why change?" Through it all, NACHI remained
persistent, flexible, and creative. In the end, all of the hard
work paid off. By adopting standard and reusable shipping
methods, NACHI reduced waste, improved
its profit margin, and provided a value-added
service to its customers. For more information
on their successful efforts,
contact Dan Nebesio,
vice president of
operations, NACHI
Technology
(Greenwood,
Indiana) at 317
535-5000.
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WasteWise Update
MAKING TIME TO FIND LESS WASTE
While the Maytag repairman might have time to spare, employees at the Maytag
Corp. s Herrin Laundry Products Facility are busy designing and manufacturing
products such as washer and dryer units. For the Facilities and Industrial
Engineering Department, finding time to investigate new waste reduction opportu-
nities, especially those involving coordination with vendors, is a challenge.
Investigating the Options
To help meet this challenge, facility staff
encouraged a summer intern to scope
out various waste reduction options—
and the results paid off. The intern pro-
jected that by working with vendors to
implement a wide range of packaging
reduction programs, the facility could save more than
$82,000 per year. The intern also estimated the facility
could prevent nearly 200,000 pounds of cardboard and
almost 150,000 pounds of wood—3,730 pallets—from
entering the facility. The cornerstone of the facility's packaging
reduction programs is a reusable container system designed,
in close coordination with the vendors, to reduce packaging
associated with shipments of washer and dryer timer parts.
Vendors now use the containers to package and ship parts;
Maytag uses the containers at workstations along the assem-
bly lines and ships them back to the vendor for reuse.
To make this project a reality, Dan Kantorski, an Illinois
EPA intern assigned to the Herrin facility during the summer
of 1996, worked closely with the facility's vendors. As part
of this project, he performed a plantwide packaging audit,
identified vendors from whom packaging could be reduced,
and worked with those vendors to reduce excess packaging.
Making this initiative a success also involved working
closely with internal departments, such as Purchasing,
• Environmental, and
Facilities and Industrial
Engineering, to identify
feasible solutions. Rene
DeGroof, a senior envi-
ronmental engineer at the
Herrin facility who
worked in cooperation
with Kantorski, advises,
"The two key steps to a
successfully coordinated
project are finding a dedi-
cated employee to oversee
"The two key steps to a
successfully coordinated
project are finding a
dedicated employee to
oversee the project and
involving all departments
and vendors at the earli-
est stages."
—Rene DeGroof, senior
environmental engineer,
Maytag Herrin facility
the project and involving all departments and vendors at
the earliest stages. Maintaining good lines of communica-
tion throughout the project is also essential."
Finding Time and
While DeGroof acknowledges that an
assessment of incoming packaging use
and the development of recommenda-
tions can be done by outside consul-
tants, summer interns, or individuals
from within a plant, he emphasizes that the essential ele-
ment is finding an individual or team that is dedicated to
the project. "Typically, when a facility manager tries to per-
form this assessment on top of doing everything else
required to keep a plant running properly, the assessment
often gets pushed to the bottom of the stack because it is
not an emergency," DeGroof explains. By assigning
Kantorski the task of conducting background research and
developing recommendations, it took less than 12 weeks to
complete the plantwide audit of incoming packaging, ana-
lyze the vendor sources, and work with the selected vendors
to develop recommendations. As part of the audit,
Kantorski gathered data on the quantities of washer and
dryer units produced per day, the parts used to make each
product, the quantity of parts used per unit, the quantity of
boxes used for each part per year, and the weight of each
box and other internal packaging materials.
Kantorski's analysis revealed that, although the Herrin
facility works with 27 vendors to receive parts and supplies
on a regular basis, 8 vendors accounted for more than 60
percent of the total incoming corrugated cardboard packag-
ing. Once he identified the vendors contributing the most
packaging, he contacted them to discuss options for reduc-
ing it. For each item or part involved in the redesign pro-
ject, he gathered data on current packaging practices
including container dimensions, part weights, part dimen-
sions, part volumes, and use of containers at workstations
along the assembly line. He entered all the information
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WasteWise Update
into a database and began developing new options to
reduce the amount of excess packaging entering the facility.
Options identified included reusable shipping containers,
reusable bulk paint containers, and reusable corrugated cart
liners.
InuduingAII Departments
and Vet-dors Early
Maytag asked for vendor input during
the early stages of planning. This allowed
Maytag to incorporate vendor sugges-
tions into the final plan, facilitating
movement of the containers within the
Maytag facility and between the facility and the vendors.
Kantorski coordinated with the selected vendors and the
trucking lines used to deliver the parts. Many of the vendors
suggested ways to redesign trucking routes in order to simpli-
fy coordination and management of the reusable containers.
Working with the trucking lines, Kantorski helped resched-
ule product delivery and pickup loops to optimize movement
of the reusable containers. He also determined the optimum
number of containers to store on site, which was a critical
component of the program for two main reasons. First, the
number of containers available in a given location must meet
the needs of each vendor and its pickup schedule. Second,
providing sufficient storage space for containers can often
involve significant capital investments if a company needs to
create the storage space or redesign their sprinkler system to
meet any new storage requirements. After analyzing each
option, based on cost-effectiveness and the potential for
packaging reductions, the Herrin facility selected the reusable
container system that best met its needs and began imple-
menting its reusable container programs with a number of
vendors early in 1997.
In addition to involving vendors early, DeGroof recom-
mends involving purchasing officials from the start, "If
everyone is involved from the beginning, it helps implemen-
tation run smoothly and quickly once the company decides
on a reusable packaging system." As soon as the facility
decided which reusable containers to use, Maytag's Pur-
chasing Department readily approved the purchase of the
reusable containers.
Commenting on the overall experience, DeGroof notes,
"By letting a dedicated person take the project and run with
it, setting aside time to examine incoming packaging and
communicating effectively with our vendors, Maytag success-
fully modified its packaging system to save money and reduce
incoming waste from vendors." For more information, con-
tact Rene DeGroof, senior environmental engineer, Herrin
Laundry Products (Herrin, Illinois) at 618 988-8431,
Ext. 372.
!oyal Crest Dairy has served as a role model for
the dairy industry through its demonstrated
.commitment to waste reduction for more than
30 years. In 1965, this family-owned, independent, home-
delivery dairy became one of the first dairies in the coun-
try to offer reusable, recyclable, high-density polyethylene
(HDPE) plastic milk containers. Royal Crest collects,
cleans, and reuses these containers up to 100 times
before recycling them. Today, the company prevents
over 40 tons of waste per year through this reuse process!
While the milk bottle reuse program is extremely suc-
cessful, the chemical process of cleaning the bottles cre-
ated a new waste stream for Royal Crest. The cleaning
chemicals came in large HDPE barrels that, once used,
piled up quickly and took up more storage space than
Royal Crest had to spare. According to Royal Crest's Risk
Manager Ace Ratliff, company managers—finding
themselves "waist deep in 55-gallon barrels"—provided
the impetus to pursue a less wasteful disposal method.
The company first examined the possibility that it
might be able to locate a recycler who was willing to
pick up the chemical barrels. Unfortunately, the awk-
ward size of and the chemical residue in the barrels
made the drums difficult, if not impossible, to recycle.
Royal Crest turned to its chemical supplier to see if the
company would collect the used barrels for reuse. The
supplier responded with a flat rejection: it did not have
the resources to clean or recycle the barrels, and one small
customer was not worth the investment. Not discouraged,
plant managers began arranging for a new supplier who
would pick up the used barrels. One plant manager
knew of a company who provided pickup service, which
expedited the entire process. Even so, managers were
pleasantly surprised to find that they were able to iden-
tify and arrange for a new supplier within a week's time!
Pleased at the discovery that there is usually someone
out there who is willing to accommodate the special needs
of even a small company, Ratliff encourages other small
companies to persevere: "Don't stop at your first rejection!"
He recommends that companies keep switching vendors,
be they product suppliers or recyclable haulers, until they
find one who will meet their waste reduction needs.
For more information on Royal Crest's waste reduc-
tion program, contact Ace Ratliff, risk manager, Royal
Crest Dairy (Denver, Colorado) at 303 777-2227.
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WasteWise Update
S U P P L I E
P O I
ENVIRONMENr
Establishing a formal policy can help communi-
cate the importance of environmental performance
to suppliers. Seeing customer requests in writing
can have a positive impact on achieving results.
SC JOHNSON WAX DEVELOPS
SUPPLIER PARTNERSHIP
When SC Johnson Wax set its first worldwide
environmental goals in 1991, it knew it
couldn't reach them on its own. So, the com-
pany enlisted the full support of its supplier
network. Working together, they've achieved some pretty
impressive results. Since 1992, the company has saved more
than $120 million annually and reduced more than 400
million pounds of waste from its products through eco-
efficient design and operations.
"Our sustainable progress since 1990 reflects
the combined efforts of SC Johnson and our
suppliers to reduce waste, risk, and cost in our
products and processes, and which equate to a
positive environmental value for our customers
and consumers," says Cynthia Georgeson,
director of corporate public affairs. "We work
hard to solicit input from our suppliers and to
share the success we've achieved. Together, our efforts have
helped make an improvement through reduced waste, risk,
and cost in people's lives."
SC Johnson, a global company with operations in 52
countries around the world, initiated its supplier partnership
program in 1991. To kick it off, the company held a
meeting with its top 70 supplier organizations from
around the world. At the meeting, SC Johnson began a
dialogue with its suppliers on how to achieve its newly
established environmental goals together. Since that
time, the company has integrated its supplier initia-
tive into a program called Partners in Quality. Through
this program, SC Johnson pledges to work closely with its
suppliers and encourages them to examine their own environ-
mental management programs to find room for improvement.
As part of this program, SC Johnson initiated environmen-
tal reviews of its suppliers and regularly audits their opera-
tions to ensure responsible management. The review involves
making onsite visits to companies as well as distributing a
questionnaire to help track and review progress. The company
also maintains momentum through newsletters charting the
environmental progress brought about by its partnerships.
In 1994, the company held another meeting with its sup-
pliers to assess progress made to date and begin the process
of establishing future goals. "Input from our suppliers helps
drive continued improvement in innovation and new tech-
nologies," adds Georgeson. "It helps generate more owner-
ship and buy-in in our efforts and provides an incentive for
our suppliers to participate."
The biggest barrier to success has been what SC Johnson
calls "the green wall"—the thinking that environmental
efforts are all cost and no gain. The company believes this is
due largely to decades of experience when environmental
benefits were never accounted for. Overcoming this hurdle
involves continuously reminding suppliers where the compa-
ny is heading and why and promoting the economic and
environmental win-win of sustainable products and process
decision-making.
"Total partnership is one of the real keys to success in any
joint effort," according to Georgeson. "Don't just give lip
service to it; practice what you preach. Also, make it clear
that you are only one link in the chain. While you may have
high expectations for your suppliers, keep in mind that you
are also responding to high expectations from the regulatory
and global community—and importantly from your cus-
tomers and consumers."
Working closely with your suppliers can help your compa-
ny reap some of the same benefits that SC Johnson has
enjoyed. Between 1990 and 1996, SC Johnson achieved
more than a 25 percent reduction in virgin packaging mate-
rial use on a global basis. In addition, the company reduced
its volatile organic compound use by 24 percent and
cut manufacturing waste in half. During that
period, production increased by more than 50
percent. All of this adds up to success, not
to mention improved product quality,
heightened productivity, and enhanced
product innovation.
For more information about SC Johnson and their
achievements, e-mail Cynthia Georgeson,
director of corporate public affairs, SC
Johnson Wax (Racine, Wisconsin)
at .
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WasteWise Update
CIES PROMOTE
LEADERSHIP
ROCHE VITAMINS FORTIFIES ITS
ENVIRONMENTAL COMMITMENT
When Roche Vitamins Inc. shared its new envi-
ronmental policy with supply vendors, its
concern for the environment
was contagious—as reflect-
ed by the suppliers' overwhelmingly posi-
tive response. In February 1997, Roche sent
a letter recommending reasonable, environ-
mentally beneficial goals for suppliers and
seeking their commitment. More than 30 of
Roche's critical suppliers responded to the let-
ter enthusiastically, paving the way for a last-
ing relationship.
The largest hurdle cleared by Roche was obtaining the time
and resources needed from the departments responsible for
compiling the letter. Roche's Packaging and Design Depart-
ment and Purchasing Department collaborated on the con-
tents of the letter. In the letter, Roche requested that
suppliers accomplish the following:
• Reduce packaging materials used in products, preferably
by at least 20 percent by the end of 1998.
• Increase postconsumer and recycled-content
materials in corrugated containers to 25
percent by the end of 1998.
• Use the highest percentage of postcon-
sumer and recycled-content materials
possible in other types of packaging.
Roche asked suppliers to reply to the letter within 30 days
and state their acknowledgment and understanding of these
goals. According to Ken Zinis, compliance
advisor, "The suppliers welcomed Roche's
effort, oftentimes describing their own pro-
grams and environmental policies." Roche
organizes direct meetings and conversations
about its policy with suppliers on a case-by-case
basis. The company appreciates the opportunity to posi-
tively influence other companies and enjoys sharing its envi-
ronmental philosophy. Although encouraging the adoption
of environmental ideals is not always easy, Roche and its
suppliers have reaped both positive financial and environ-
mental benefits as a result of their efforts.
With continued annual mailings, Roche plans to solidify
its partnership with its supply vendors and track their
progress. The company regularly partakes in outreach to
other businesses and the community to share its positive
experiences and challenges related to the company's environ-
mental program. Roche advises and encourages other com-
panies to set realistic goals and demonstrate preference
toward vendors who commit to meet those goals.
In the future, Roche expects to gather examples of suppliers'
environmental efforts and inquire about their environmental
programs, which will enable Roche to quantify the impact of
its relationship and encouragement. For information regard-
ing Roche's supplier letter and environmental program, contact
Ken Zinis, compliance advisor, Roche Vitamins Inc., (Belvidere,
New Jersey) at or 908 475-7307.
Wbys Your Supplier
oeY<
BY REDUCING OR ELIIVINATING PACKAGING:
• Eliminate unnecessary secondary packaging such as
extra bags, boxes, or filler.
• Pack products more efficiently to use less packaging
or smaller containers.
• Supply products in bulk or concentrated form to
reduce packaging.
• Replace standard packaging filler with reusable air-
cushioned bags.
BY CHANGING DISTRIBUTION SYSTEMS:
• Send product information electronically rather than
through paper catalogs.
• Establish electronic purchasing or billing systems.
• Supply inventory on a "just-in-time" basis to reduce
expired inventory.
• Create a distribution system that backhauls reusable
containers such as totes or pallets.
• Take back a pallet for each pallet left with supplies.
BY PURCHASING OR TAKING BACK
MATERIALS FOR REUSE:
• Take back substandard or rejected products.
• Accept waste for reprocessing as feedstock in con-
formance with all sanitary code requirements.
BY SUPPLYING DURABLE PRODUCTS:
• Design products for long life.
• Provide warranties and extended service contracts
for repair of products.
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WasteWise Update
Minnesota Chamber of Commerce
Watches Its Weight at Lunch
When employees of the Minnesota WasteWise program at the
Minnesota Chamber of Commerce realized how many pounds
they were "putting on" at their lunchtime meetings, they knew it was time for
a change. They decided to put the organization on a diet of sorts to cut out
the unnecessary "fat" and trim down their waste as much as possible.
Reducing food consumption had no part in this group's recipe for success, however. Rather, the group
worked with its caterers to greatly reduce the amount of packaging in which food is served.
The Minnesota Chamber of Commerce became interested
in reducing its luncheon waste purely out of motivation to
conserve resources. Staff noticed that the luncheons hosted
by the organization several times a month were responsible
for generating the majority of the nonrecyclable waste in the
office. Meals were served in clam-style, single-serve, ridged
polystyrene containers, which* quickfy piled up in the trash
can. With disposal costs charged ^as,a* flat fee on top "of Bent,
the organization stood to save no money in waste hauMg
charges or tipping fees by'cutting the containers out of the •
waste stream. As Karen Flannery, Minnesota WasteWise
program director, put it, however, "It was just a matter of
principle and common sense."
When Flannery approached the catering companies that
regularly served the Minnesota.Chambe/ of Cbmjnerce* artcT
requested that they reduce packaging used for lunches, the
catering companies met her with-mixed reactions. Some felt
that most of their customers actually preferred individually
packaged meals over a group buffet-style presentation and"'
were reluctant to alter their service. One of the
organization's principal caterers—Atrium Catering of
Minneapolis—however, needed little convincing to adjust
its delivery style. According to Flannery, "The challenge was
to change the caterer's perception of customers' demands."
Once she made it clear that reducing the amount of waste
generated would accomplish the Minnesota Chamber of
Commerce's objectives and benefit the caterer by reducing
its supply costs, Atrium Catering was sold on the idea.
Now, instead of delivering the lunches in 20 to 30 individ-
ual one-use boxes per meeting, Atrium Catering provides
the food on two large reusable trays and serves chips out of
a large bowl rather than small bags. This simple change has
considerably slimmed down the office's waste stream. Using
trays in place of boxes for 40 weeks last year eliminated
approximately 600 boxes, and the trays are so durable and
versatile that staff members take them home to reuse for
serving their own guests. As a result of the catering change,
Flannery estimates the Minnesota Chamber of Commerce
reduced its nonrecyclable luncheon waste by more than 50
percent. The buffet-style food service program has proven so
successful that Atrium Catering now offers all of its customers
the option to order their deliveries the "Minnesota Waste-
Wise Way."
What is perhaps most inspirational about this cooperative
waste reduction program is that, contrary to what one might
expect, the Minnesota Chamber of Commerce found its
small size wasn't a barrier to influencing its caterers. This is a
hopeful sign for smaller WasteWise partner organizations
that their size might not be of much consequence in affect-
ing their suppliers' openness to new ideas. As the Minnesota
Chamber of Commerce learned, the real keys to influencing
suppliers, are establishing a good rapport and maintaining an
open line of communication.
"For more information on the Minnesota Chamber of
Commerce's success in working with its catering company to
reduce waste, contact Karen Flannery, Minnesota WasteWise
program director, Minnesota Chamber of Commerce
(St. Paul, Minnesota) at 800 821-2230.
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WasteWise Update
sour
PUBLICATIONS
Selecting a Supplier, Hauler,
and Materials Broker
This fact sheet provides organizations with
guidelines and questions to ask in negotiating
with suppliers to reduce their waste streams.
Developed by Resource Recycling Systems, Inc.
Contact: Office of Waste Reduction Services,
State of Michigan, Departments of Commerce
and Natural Resources, RO. Box 30004,
Lansing, Ml 48909; Phone: 517 335-1178.
Reduce/Reuse/Recycle: Are You
Buying Trash? Save Money and
Prevent Purchasing Waste
This fact sheet lists examples of waste preven-
tion in which organizations have requested
or required suppliers and contractors to re-
duce waste and save money. New York
City Department of Sanitation, April 1994.
Contact: New York City Department of
Sanitation, RO. Box 156, Bowling Green
Station, New York, NY 10274-0156;
Phone: 212 837-8089.
Office Green Buying Guide
A guide to Green Seal environmental
papers. Topics include steps to implement-
ing a green purchasing program and
products to have in a green office (recycled
paper products, tissue, facsimile machines,
computers, lighting, photocopiers, cleaning
products, paints, inks, toner cartridges,
reusable envelopes and bags, suppliers,
vendors, recommended products). Green
Seal Environmental Partners, 1996.
Contact: Green Seal Environmental
Partners, 1730 Rhode Island Avenue, NW.,
Suite 1050, Washington, DC 20036-3101;
Phone: 202 331-7337.
Greening the Supply Chain:
Benchmarking Leadership Company
Efforts to Improve Environmental
Performance in the Supply Chain
This paper documents a study that identi-
fies model business practices in the area of
supply chain environmental management.
Expectations for nonbusiness or external
stakeholder groups regarding the environ-
mental performance of leadership compa-
nies and their suppliers also are provided.
May 1997.
Contact: Business and the Environment
Program, Business for Social Responsibility
Education Fund, 1030 15th Street, NW.,
Suite 1010, Washington, DC 20005.
"Let the Supplier Beware: How a New
Breed of Supply Chain Management
Practices is Changing Procurement"
This article explains how to work with sup-
plier companies, gives examples of organi-
zations that have developed environmental
policies, and provides guidelines to consid-
er when evaluating suppliers for environ-
mental performance. The Green Business
Letter, April 1997.
Contact: Tilden Press, Inc., 1519 Connec-
ticut Avenue, NW, Washington, DC 20036.
INTERNET
"Purchasing for Waste Reduction"
This list of ideas was approved by profes-
sional procurement officers and is intended
to help you jump start your waste preven-
tion efforts and save money too.
"Questions to Ask Your Vendor"
A checklist to help businesses make well-
informed purchasing decisions and write
form letters to send to vendors announcing
that purchasing environmentally preferable
products is a priority with your organization.
"Publicizing Your Environmental
Accomplishments"
Recommends simple ways to inform ven-
dors, manufacturers, coworkers, in-town
and on-location crew about your organiza-
tion's environmental policies. Recommends
conversions to use in communicating the
impact of your environmental policies.
"Using Your Buying Power"
This Canadian web site recommends
methods for improving office operations
and suggests ways to adopt an office pro-
curement policy that encourages the pur-
chase of green products.
< www. ns.doe.ca/udo/office/chap9. html >
"Green Procurement: Moving
Environmental Quality Up the Supply
Chain"
Gil Friend and Associates, a consulting
group specializing in strategic environmen-
tal management including corporate envi-
ronmental policy, EcoAuditing, and
ecological reengineering, wrote this article
explaining the steps an organization
should take to initiate a supplier program.
Mfefd Like to
H
You!
Questions? Comments?
Contact us at 800 EPA-WISE (372-S
or by e-mail at . Or visit
our web site at .
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WasteWise Update
10
Clorox's Efforts Trigger
Comprehensive Savings
In the competitive consumer products industry, where
cost controls are vital to a company's competitiveness,
The Clorox Company continually searches for ways to
increase resource efficiency and reduce its production
costs. For decades now, the company has worked with its
suppliers to eliminate extraneous costs wherever possible.
Motivated primarily by the need for cost control, Clorox has
successfully implemented a comprehensive supplier waste
reduction program. This program encompasses many aspects
of the customer-supplier relationship from product packag-
ing specifications and electronic communications to ship-
ping and distribution methods.
During a recent evaluation of its operations,
Clorox found that the trigger sprayers used
on various cleaning products were packed
too few to a box to effectively supply produc-
tion lines. Not only was this "lag in produc-
tion...costing the company precious resources
in labor expenses," according to Clorox's
Manager of Environmental Programs,
Terry Bedell, the small boxes were piling
up quickly and adding unnecessarily to the
company's disposal costs. Clorox realized
that the process of unloading the spray
triggers was causing a significant resource
inefficiency, and Clorox's operators did not
hesitate to take action to institute change.
Backed by the notion that the most obvi-
ous solution to the problem lay in switch-
1 Another key point for
partners interested in
supplier reduction pro-
grams is to clearly let
your suppliers know
what your operations
look like and what your
needs are and to ensure
that you communicate
this information at the
right level."
—Terry Bedell, manager of
environmental programs,
Clorox Company
ing to a larger container, Clorox's procurement department
asked the company's trigger supplier to consider using bulk
containers in place of 500-count corrugated boxes. To gain
the supplier's support, Clorox emphasized that the packag-
ing change was an opportunity for mutual savings and made
it clear that it reflected Clorox's needs. In light of its long-
standing positive working relationship with Clorox, the sup-
plier was receptive to the idea.
Before either company could move ahead with implement-
ing the necessary packaging and procedural changes, each
had to assess whether a switch to bulk shipments would be
feasible given the limitations of the companies' operations
and the product itself. The vendor conducted tests on the
spray triggers to see if they could withstand shipment en
masse. Meanwhile, Clorox evaluated how it might accom-
modate the spray triggers' new form of packaging into its
own production lines.
The supplier found that Mhile .bulk bags .diet Hob provide
enough protection for the trigger sprayers, pallet-sized bulk
boxes, or gaylords, that hold up to 5,000 triggers-.per box
would protect them. In addition to reducing the packaging-
to-product ratio, gaylords extend the .life of the corrugated
material used to make them. With their durable arid col-
•. j^.1 f .• •.-r:v^?| ^Tf
lapsible double walls, they can be reiiSed up ig lOilimes, as
compared to the single^jise smaller l|bxes. To 'jhcorifiorate the
pallet-sized boxes into Jits production lines, Clorox Changed
the configuration of i|3 loading system. The company then
coordinated with theiyendor to set Up a packaging return
program. With all of Xhese changes 'in place, Clorox's 3fid
, \
the trigger suppliers-cooperative .efforts suc-
cessfully reduce- 200 tons of corrugated annu-
?••
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11
WasteWise Update
:
H1 ON GOVIRNMIN
Massachusetts Advises Environmental Purchasers
If you don't practice what you preach how
can you encourage others to follow? This
message rings true for many local and
state governments that are beginning to
look at environmental purchasing prac-
tices. How do you get started?
While most governments are organized differently, all have
one source for procuring goods and services — the purchas-
ing department. There is no better way to get a state, locality,
or tribe to work toward environmental purchasing than an
executive order or policy requiring the purchasing depart-
ment and employees to consider environ-
mentally sound goods. Eric Friedman,
environmental purchasing coordinator with
WasteWise partner, the Commonwealth
of Massachusetts, has been purchasing
environmentally preferable products for
the Commonwealth for the past 5
years. Out of his top 10 tips for govern-
mental purchasing, he places an executive
order or policy as number one. "Not only will a
policy or order state what is expected by the government,
but it also establishes upper-level support," says Friedman.
Other1 Steps for Enmncmrental
Purchasing
Below are some of Friedman's other tips for successful
environmental purchasing.
Involve the right people in the decision-making process.
Make sure your team includes all the principal partners in your
program: employees from purchasing, facilities, public works,
environmental, and any other departments you deem necessary.
Talk with other states and localities. Check to see what
your peers are doing. They can give you great advice as to
what works and what doesn't.
Start off with what's easy. If you are putting a purchasing
policy together, Friedman suggests that you start with easy prod-
ucts so that you can gain employees' trust. "We started with
envelopes," Friedman explains. "They were something that
everyone uses and are easy to convert to a recy-
cled product with no impact on perfor-
mance or appearance. Once people knew
that they [envelopes] were made from
recycled-content material, it was easier to
get them to use recycled paper and other products."
It's not all or nothing. "Many programs suffer from this
syndrome," Friedman says. "Even if you only have one or
two environmental products or practices, it's a start. The
momentum will build, and, slowly but surely, you will see
more and more success."
Do your homework. Include all the requirements for the
product or practice (or be willing to send out amendments).
Friedman recalls one mistake in this area. "We forgot to
include the American Petroleum Institute's specifications in
our re-refined motor oil bid. Vendors called us right away to
let us know of our mistake, and we quickly corrected it in
an amendment we sent out a few days later."
Establish pilot programs. Another way to gain the trust of
your employees (and to try something different) is to establish
a pilot program in a department or within a government.
Publish a guidebook. Give your employees as much
information as possible. Also, the language of the
guidebook needs to be instructive and not filled
with "shoulds" and "wills." Friedman says that by
using such words as "reasonable" and "acceptable"
you will gain more support for your program. Check
out the Commonwealth's purchasing department
web site at
for more ideas on procurement guidebooks and fact sheets.
Keep information flowing. Nothing kills a program like
lack of information. Keep researching new and upcoming
products and practices and update your employees.
Massachusetts conducts workshops, maintains a web site,
and sponsors an annual vendor fair to spread the word.
For more information, contact Eric Friedman, environmen-
tal purchasing coordinator, Commonwealth of Massachusetts
(Boston, Massachusetts) at 617 727-7500, Ext. 351.
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WasteWise Update
12
ComEd Cuts Waste By Streamlining
Purchasing Process
Are old supplies piling up and creating a disposal problem
for you? While bulk purchasing can help reduce waste for
some organizations, others receive more supplies than they
can use on a regular basis. For Tom Hall, procurement
specialist for WasteWise partner Commonwealth Edison
(ComEd), these problems created hefty disposal costs and
increased administrative burdens. Hall established a "just-
in-time" policy through a single supplier that enabled
ComEd to obtain supplies as needed and reduce waste from
materials that exceeded their shelf life. This policy, along
with some other streamlining processes, has saved the
company more than $500,000 since the project began.
Hall, who regularly purchases chemicals, lubricants, and
lab supplies for ComEd, explains that before ComEd
adopted its just-in-time policy with a single supplier for
the laboratory, the company faced many difficulties in
managing the supply chain. Formerly, it ordered materials
from six suppliers, each of which required a separate invoice
for every order. With ComEd's 16 facilities placing orders
for several items a day, the cost for processing the invoices
and paper flow alone became a significant expense. In
addition, bulk orders produced waste from leftover sup-
plies whose shelf life had expired.
Hall developed a pilot with one of the suppliers that alle-
viated ComEd's burden. He negotiated with the supplier
to designate several new methods to order supplies by
phone, fax, or the Internet. The supplier created a web site
that contained an online catalog, a complete list of stock,
and online order forms. This system provided real-time
data on the availability of particular items so ComEd
could determine when it would receive the supplies. The
supplier also agreed to fill the orders for next-day delivery
as needed and send only one billing statement monthly to
each facility.
According to Hall, the most important part of the contract,
however, was establishing a third-party buying system so
ComEd need only order through a single supplier. By
establishing a third party buying system, the supplier became
responsible for ordering materials and supplies from other
companies and charging ComEd for its services. This policy
relieved ComEd from its dependence on six different sup-
pliers with separate invoicing and delivery systems. The
supplier also agreed to adhere to a buy-back policy so that
surplus materials would not be thrown away.
ComEd has expanded the pilot study to all of its 16
facilities. In order to make it a complete success, Hall
notes that it is important for the supplier to commit to a
firm price for a long-term contract. ComEd selected the
supplier based on its willingness to meet ComEd's needs
and its strong performance on consistent pricing and
delivery. Hall states, "It's not only great for cutting waste
and improving our bottom line. It ultimately reduces the
end cost for our customers too!" For more information,
please contact Tom Hall, supply manager, ComEd
(Chicago, Illinois) at 630 663-5125.
x>EPA
United States
Environmental Protection Agency
(5306W)
401 M Street, SW.
Washington, DC 20460
Official Business
Penalty for Private Use
$300
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