Managing Supply Chains Responsibly

For many companies, the supply chain is their greatest challenge, requiring new systems of communication and evaluation. While demanding more from suppliers in the form of higher quality at lower prices and just-in-time delivery, companies are finding their brand inextricably linked to the behavior and practices of their 

At BASF, suppliers and business partners are expected to observe the International Labour Organization s Declaration on Fundamental Principles and Rights to Work. The Declaration calls on governments, companies, and worker organizations to uphold employees right to organize and bargain collectively and to eliminate child labor, forced labor, and discrimination in the workplace. BASF suppliers found to violate these labor standards can be terminated without notice if necessary (BASF, 2001). 

In negotiating to purchase raw materials, BASF uses a safety matrix to evaluate the dangers posed by their physical and chemical properties. Suppliers are also subject to environmental and safety audits by BASF employees to minimize pollution and to assure their use of safety standards are in accordance with Responsible Care. The company s environmental criteria are supplemented with minimum social standards that suppliers are expected to meet, including the prohibition of child labor and the use of forced or bonded workers. 

Since the 1990s, many companies have produced social and environmental codes of conduct for their suppliers as a solution to managing their supply chain and averting what otherwise could become a catastrophe. Many companies have also 

Verification of supplier compliance with a company s code of conduct is particularly important to international supply chains. And who will pay for introducing new methods of verification is again a big issue to suppliers. 

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The two primary industry consensns programs for managing transportation risk are the Responsible Care Distribntion Code of Management Practices and the National Association of Chemical Distribntors Responsible Distribution Process (RDP). These programs share similar elements and are widely used across the chemical distribution supply chain. Responsible Care is a recognized internationally performance-based system that contains the following elements ... 

Handheld RB, Bechtel C (2002) The role of trust and relationship stmcture in improving supply chain responsiveness. Ind Market Manag 31 367-382... 

Mature risk management should also take the aspects of supply chains responsibility into account in social and environmental terms. At the same time, this type of management means the conscious identification and evaluation of risk, noticing the dependencies between risks and potential scenarios, concentration on transparent communication on risk in the whole company and in the supply chain (Deloitte 2011, p. 10). 

Product stewardship is a more management-related guiding principle, in which the substance manufacturer s assumption of responsibility and the supply chain perspective are of vital importance. 

Production management is responsible in the short term for planning production in order to cover the overall supply chain demand, and for delivering timely, complete, and quality-checked production volumes accordingly. In the long term, it optimizes the production network configuration and available capacity. 

Non-conflicting and unambiguous accountabilities are key to success. Supply chain managers are often held responsible for inventory levels but are unable to influence production lot sizes, which are normally under the control of the production managers responsible for production costs. As lot size adversely affects inventory levels and production costs, this is a common example of conflicting and ambiguous accountabilities, where responsibilities are not backed up by con-... 

Interviews number of interviewee A gap in towards the end-use of the supply chain - Retailers are playing an increasing role in chemicals policy - Chemical distributors may have specific views on chemicals policy and risk management - Geographical and temporal accessibility to interviewees - Choice of major actors in chemicals policy - Environmental and consumer NGO are likely to be involved in the activities of retailers - Regulators and industry trade associations are likely to be aware of the role and responsibilities of chemical distributors... 

Distribution is an important activity in the integrated supply-chain management of pharmaceutical products. Various people and entities are generally responsible for the handling, storage and distribution of such products. In some cases, however, a person or entity is only involved in and responsible for certain elements of the distribution process. This document sets out appropriate steps to assist in fulfilling the responsibilities involved in the different aspects of the distribution process. The guidelines are intended to apply to all steps in the distribution/supply chain. The relevant sections should be considered by various role players as applicable to their particular role in the distribution process. The document does not specifically cover... 

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