Environmental Quality in the Supply Chain of an Original Equipment Manufacturer: What Does It Mean?

Abstract

This chapter approaches the environmental quality question in the supply chain from an original equipment manufacturer’s (OEM) perspective within the electronics and telecommunications industry. The OEM perspective of both a customer and the supplier typically consider such aspects as price, delivery, service, technology and quality playing on an ongoing role, while environmental quality is an additional and new factor. A novel environmental supply chain evaluation approach is introduced here on the basis of the eco-supplier development cycle, which embodies six steps. The activation and continuation of the cycle is executed with environmental performance tools, which collect the supplier data and generate an environmental performance per supplier. The environmental performance expresses the supplier’s total production behavior. Based on their environmental performance, suppliers can be evaluated and a proposed price reduction can be derived. The link between environmental performance and proposed price reduction transposes environmental quality into a business perspective. In this scope, the results of a global assessment of 25 printed board production facilities are discussed and a conclusion is drawn. In the long term, this new approach offers a complementary tool for environmental management systems like ISO 14001.