Page 234 - Design for Environment A Guide to Sustainable Product Development

Pr oduct Life-Cycle Management 211

worldwide directive to eliminate all ozone depleting substances.
As climate-change policy continues to evolve and HFC-specific
regulations are developed in the European Union and elsewhere, it is
expected that Novec™ 1230 fluid will become a cornerstone in fire
protection systems.

Toward Sustainable Supply Chain Management
While life-cycle management began as a company-centric practice
that was concerned with costs, benefits, and risks to the firm, it has
evolved into a broader-scope process that extends beyond the firm’s
boundaries to consider the needs of suppliers, customers, other key
stakeholders, and society at large. As described in Chapter 4, busi-
ness strategists have recognized the importance of environmental and
social responsibility to the long-term success of the enterprise. LCM
provides a consistent approach for implementing “sustainable” busi-
ness practices, such as DFE, extended producer responsibility, and
product stewardship. Of course, different types of companies may
focus on different portions of the product life cycle; for example 3M’s
LCM program emphasizes the new product introduction process
while Caterpillar’s Reman program focuses on product take-back.
With increasing globalization, many companies have shifted their
business models toward a greater reliance on partnerships and out-
sourcing. Leading companies increasingly view supply chain excel-
lence as a source of competitive advantage, with the potential to drive
performance improvement in customer retention, revenue genera-
tion, cost reduction, and asset utilization. Cross-functional teamwork
is essential to orchestrate a company’s supply chain business pro-
cesses—managing relationships with suppliers and customers as
well as managing the flow of goods, services, and information along
the value chain. As a result, supply chain management has evolved
from a traditional focus on purchasing and logistics to a broader,
more integrated emphasis on value creation. Hence, the following
definition [4]:

Supply chain management is the integration of key business
processes from end user through original suppliers, which
provides products, services, and information that add value
for customers and other stakeholders.
With the growing importance of environmental, health, safety, and
security issues, there is a pressing need to proactively consider the
full supply chain in both product development and life-cycle manage-
ment. As exemplified by Caterpillar, manufacturers are beginning to
take back products and packaging at the end of their useful life, so that
designing for reverse logistics has become a strategic approach for
converting wastes into assets and, thus, generating shareholder value.