Environmental-economic supply chain management from an original equipment manufacturer's perspective: How can we make it happen?

This paper presents an environmental-economic supply chain management approach for an Original Equipment Manufacturer (OEM). An OEM procures components such as integrated circuits, connectors, etc. and produces telecommunication and/or consumer products at his own assembly sites or the assembly sites of so-called contract manufacturers. When the products reach their end-of-life phase, the OEM offers to take them back from his customers for recycling. In these supply chains a measurable environmental performance of a supplier's production facility should become a major element. The environmental performance is based on the supplier's production behaviour and is determined using an Environmental Performance Tool. From an environmental-economic perspective, management of suppliers, recyclers etc. using Environmental Performance Tools is about more than the requirements for hazardous substances in products and the use of environmental management systems. Use of Environmental Performance Tools drives the suppliers towards environmentally perfect production, as is illustrated in this paper using the extended assessment results of 25 printed board production facilities.