Case Studies

Furniture
Metal
Printing

Introduction

This chapter provides examples from SMEs from Estonia, Latvia, and Lithuania, describing what they have been doing so far with regard to supply chain aspects.
The companies were interviewed and during a site visit the different issues were observed by the project team. The results were evaluated and recommendations are provided here, to provide an overall picture of what should be done in this filed, and how it can be practically implemented.

We would like to express our thanks to the companies which have been ready to co-operate in this field and allowed us to provide the results here in this interactive walk-through

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Furniture industry case studies

AS Standard (Estonia)

Introduction

Standard is Estonian furniture company producing soft and office furniture to retail sale and hotel furniture for special orders. It was chosen for pilot study because they were aware of supply chain communication (aspects) before this project, but want to improve the supply management inside of company. There is worked out integrated quality- and environmental strategy in enterprise, also quality and environmental goals are developed and implemented at company considering legislative requirements and important environmental aspects. Environmental changes in the company are justified through cost reduction, in case of special orders also client satisfaction is considered.

Company profile:

Existing Supply chain-communication scheme

Main actors in supply chain communication

As Standard is producing products for public sale and for special orders, then the actor’s involved into supply chain management are also different. Below we describe both cases.

Development of product and purchase of materials

Standard public products

After idea to develop new product, meeting is held between Development and Marketing department people. The process and tasks of each department are agreed and later each department will develop the product further on.  The material of the product is determined by Development department (also considering environmental criteria), but marketing people advice as they know best the consumers wishes. After agreement about material Production department is asked to specify the technical criteria for plates and Chief technologist is asked to specify finishing materials specification. This criteria is finally forwarded to Purchasing department which decides about supplier and purchase conditions (usually most important is price issue).

Special ordered products

Client contacts the company and has own vision and wishes towards product (also environmental criteria if requested). Development department and Production department decide about the specification of plates, chemist is developing specification for finishing products (chemicals). This criteria is finally forwarded to Purchasing department which decides about supplier and purchase conditions (considering client ability to prices and environmental requirements).

Marketing of products

Marketing department is responsible on communication with clients and consumers. For them most important are client requirements; own company environmental aspects are not stressed if client is not asking.

Conclusions on communication directions and supply chain management

Communication with suppliers

Main criteria for supplier choice are price, supply time, and security. Usually the work with supplier is secure and stable. Environmental performance measures of suppliers are not asked but environmental criteria of materials are considered:

• for chemicals: pollutants emission (VOC concentration), health aspect (less hazardous substances).
• for plate materials: less waste.

Environmental criteria are usually defined by development department, but this criteria are not documented. Local clients are not ready to pay for environmentally friendly products – therefore company also do not have pressure to choose more environmentally friendly materials from own initiative.

Suppliers themselves do not provide trainings or information about new environmentally friendly solutions, local supplier even are usually not aware of environmental aspects, they mainly concentrate to price issues. Few foreign suppliers are providing trainings on environmental issues where mainly chemist is participating.

Communication with suppliers are done by purchasing department. Staff of the purchasing department is not involved into the implementation of environmental strategies in company. Their working tasks do not include responsibility to screen environmentally friendly materials, technologies or search for less harmful substitutes. They do not interface with engineering, only in case they are asked, e.g. in case of material purchase with less waste. Purchasing department mainly cooperates with development and production department.

Staff in the purchasing department is not trained on environmental issues, they not have any instruction manuals nor internal training of new staff.

Communication with customers and consumers

Marketing department communicates with customers. For that department most important are client requirements; own company environmental aspects are not stressed if client is not asking. Usually clients who are asking about company environmental performance are big international companies who are ordering some special furniture (e.g. for hotels).

Marketing department has not got special trainings on environmental aspects, their work base to satisfy client requirements.

Environmental friendliness in not selling argument in Estonia as consumers are not eager to require or ask environmental impacts of products, therefore Standard company is not stressing environmental friendliness of used materials during selling process. But company says that if there would be cost benefit from consumers awareness raising, then they would educate/inform consumers and public.

Communication with other companies

Company Standard is sometimes communicating with other companies on environmental issues: e.g. air pollution (VOC emissions), environmental reporting requirements. Environmental communication is mainly done through personal contacts or through Environmental Management Association.

Recommendations for further improvements

• General
• Incorporate environmental issues into existing supply chain management activities and design, procurement, and distribution processes. Remember: The supply chain starts from the origin of the raw material and ends once the product has been discarded or recycled!
• Work and communication with suppliers
• Develop clear criteria for the supplier and material choice.
• Set environmental criteria for choice of materials (e.g. reduction in energy consumption through whole life cycle, less waste, decrease release of pollutants etc.).
• Set targets for different environmental performance measures of your suppliers (e.g. all should have ISO 14001/EMAS by 2010)
• Set the working group to develop and/or update those criteria regularly (1-2 times a year).
• Involve environment, occupational safety, manufacturing, marketing, research & development, marketing specialists.
• Document the criteria.
• Train the people working with suppliers on use of those criteria. Develop the some instruction manuals for use and internal training of new staff.
• Practice clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations. Ask them for additional services not only for sale!
• tell them about your expectations towards their environmental performance
• ask them for trainings on environmental issues
• request up-to-date information on environmentally friendly materials and technologies
• feedback about performance of their products
• visit them to see their environmental performance
• seek them to collect, clean and reship process waste back to their company
• turn back to suppliers with the questions of waste treatment
• Work of purchasing department
• Involve purchasing department into the implementation of environmental strategies in your company. Include into the procedures for purchasing department the responsibilities for the screening of environmentally friendly materials, technologies, less harmful substitutes.
• Make sure your purchasing interface with engineering to ensure that materials bought can be recycled or reused, or meet resource/waste reduction goals, do not create new environmental problems etc.
• Purchasing executives need to be familiar with and use key environmental tools, such as life-cycle management, environmental auditing of suppliers to assess their environmental capability, evaluation of substitutes, environmentally sound packaging, environmental performance management. These issues should be included into the current training modules already. Make them regular! Prepare the instruction manuals for use and internal training, especially new staff.
• Communication with customers and consumer
• Create the strategy how to communicate your environmental performance to your customers. Involve into this process environment, occupational safety, manufacturing, marketing, research & development, distribution specialists.
• Screen the market regarding requests of environmentally friendly products. Contribute yourselves to the awareness raising of general public with regard to the environmental issues (articles, actions, trainings of the retailers etc.)
• Have an “open” approach to inform customers, general public about your environmental performance, e.g. some designed labels for products and packaging.  

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Troja Ltd. (Latvia)

Introduction

Troja Ltd. is a Latvian furniture company producing goods from birch veneer, also wooden toys, particularly rocking horses. The company was chosen for pilot study because it is having a strong position on higher management level to produce environmentally friendly products – follows ISO 9001 requirements, uses only raw wood certified by FSC (Forest Stewardship Council) certificate.  The company is a member of Furniture Production Association in Latvia having internal communication system established among members to exchange recent info on newest technologies and materials, changes in legislation. They are frequently upgrading technologies where environmental and workers health aspects are also considered. The company has developed criteria for how to choose and evaluate suppliers and are having frequent visits to their suppliers (both new ones and permanent ones) to check, e.g., what are the conditions for storing of raw wood, what are working conditions for workers.

Company profile:

Existing Supply chain-communication scheme

As Troja is a member of the Furniture Production Association, the main communication on supplies and products is performed via the association. However, there is also a direct communication with suppliers.

Development of product and purchase of materials

• Head of purchase and production department, purchasing agents, but also the consortium and their purchasing agents (12-13 agents) which in a centralised way make purchase and provide supplies to the Troja company as well. This approach is evaluated as beneficial because:
• Better price for supply (retail sale)
• Exact amount of necessary raw material can be ordered to be delivered from the centralised storage place (no need to have a large storage place at the territory of the company)
• Within the company Production and purchase department cooperates with technologist and purchase agents to perform their daily tasks as well as to ensure that materials that are specified can be recycled or reused, or meet resource/waste reduction goals
• Procedures for purchasing department include the responsibilities for the screening of environmentally friendly materials, technologies, less harmful substitutes. This task is taken seriously.
• Staff in the purchasing department is trained on environmental issues, e.g., environmental legislation requirements, evaluation of substitutes, environmental performance management, etc.
• Purchase and production department has developed some 10 criteria (documented in a table format) for evaluation and selection of suppliers:
  • wood materials having FSC certificate, price, distance, supply security, quality, speed of delivery, % of defective products, ISO standards. With regard to chemicals – stability of substance, SDS.
• Suppliers are not involved in the basic product development work. If there is a concrete order, then the appropriate supplier is looked for, conditions negotiated.

Marketing of products

• The company is not performing communication with customers and consumers themselves. There is a marketing service at the union of furniture companies which finds clients also for the company. The company receives an order, studies conditions and accepts or rejects the order.
• Company specialists are well educated on environmentally friendly products, thus there has been cases when a clients order is rejected because e.g., too high concentration of toluene in clients requested colour.

Conclusions on communication directions and supply chain management

Communication with suppliers

• The company has many permanent suppliers – e.g., 20 suppliers of chemicals. Having permanent suppliers is beneficial for the company because if a supplier has to be changed, then new tests have to be performed to ensure that product complies with all requirements, also if it does not contain hazardous (restricted) substances.
• The head pf purchase and production department and a technologist, but also the union of the furniture companies are involved into communication/interacting with supplier.
• Approximately once per month the Head of purchase and production department visits each supplier. Visits are performed to find if there are any new products or technologies supplier can offer. Some suppliers provide also up-to-date information on environmentally friendly materials and technologies.
• Visits are performed also before choosing the supplier. During the visits attention is paid towards e.g., conditions for storing of raw material, conditions at workers place, etc.

Communication with customers and consumers

• The company is not having a direct communication with customers and clients. Communication is performed via the union.
• Customer demands in Latvia are not so high towards environmentally friendly products in opposite to e.g., Japan (ISO certificate is requested for all toys) or other countries having high living standards.

Communication with other companies

• Approximately once per week the company is meeting other furniture companies – members of the union. The Union is organising seminars and meetings where information on recent technologies, machinery is given.
• Each member company of the union has their environmental experts who follow all legislation requirements and changes. If there comes up any new information there is a round mail sent to all member companies.

Recommendations for further improvements

Suppliers’ choice

• Train the people working with suppliers on use of criteria of environmental performance of supplier. Develop some instruction manuals for use and internal training of new staff.

Communication with suppliers

• Practice clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations. Ask them for additional services not only for sale!
  • provide them trainings on environmental issues to build suppliers’ environmental management capacity (benefits: opportunities for cost containment, improved risk management and enhanced quality and brand image) or
  • ask them for trainings on environmental issues
  • feedback about performance of their products
  • request up-to-date information on environmentally friendly materials and technologies

Work of your purchasing department

• Prepare the instruction manuals for use and internal training, especially new staff on purchase of materials taking into consideration environmental aspects.
• Communication with customer/consumer
• Contribute yourselves to the awareness raising of general public with regard to the environmental issues (articles, actions, trainings of the retailers etc.)
• Have an “open” approach to inform customers, general public about your environmental performance, e.g. some designed labels for products and packaging. 

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Metal

UAB “Panevezio Aurida”

Introduction

UAB “Panevezio Aurida” is Lithuanian metal processing company which main production is producing for Russian market. It is Russian Capital Company. The company mainly produce air compressors for tracks. The company was chosen for pilot study because they new basis about supply chain communication (aspects) before this project, but voluntary committed  to improve the supply management in the company. Environmental changes in the company are justified through workers health issues, environmental taxes, cost reduction and quality of the production.

Company profile:

Existing Supply chain-communication scheme

Main actors in supply chain communication

As Panevezio Aurida is producing products for little amount of companies the clients are known and they are not interesting in the technological processes as it is not directly related to quality of the final product.

Development of product and purchase of materials

Panevezio Aurida products

Clients have long period contracts with the company. The final product design and technology is not changing often. If the changes are foreseeing it is mainly related with design and technical changes in the tracks and it is coordinated much in advance. As concern air compressors the company is producing all processes to the final products.

Conclusions on communication directions and supply chain management

Communication with suppliers

• Main criteria for supplier choice are quality, hazardous, VOC concentrations, supply time, and price. Usually the work with supplier is stable. Environmental criteria of materials are considered:
• for chemicals: pollutants emission (VOC concentration), hazardous waste aspects. As management of hazardous waste is pretty expensive the environmental manager in cooperation with supply manager is looking for less hazardous or not hazardous chemicals or technologies which will allow to use not hazardous chemicals.
• Environmental criteria are defined by environmental manager who is providing recommendations to production and technical director. Usually such recommendations are taken into considerations. Supply choosing criteria are not documented.
• Suppliers themselves do provide information about new environmentally friendly solutions trough introducing new materials and technologies.
• Communication with suppliers is done by supply department of the company. Decision in concern of purchasing new chemical material are done in consultation with environmental manager, the manager also provides recommendation concerning introduction of new equipment and technological process.

Communication with customers and consumers

• Marketing department communicates with customers. For that department most important are client requirements; company environmental aspects are not stressed to the client if it is not asking.
• Marketing department aware on environmental aspects but they are depending fully on client requirements.

Communication with other companies

• Metal company Panevezio Aurida is communicating with other companies like “Snaige” main producer of refrigerators in Lithuania, “Vienybe” mainly on technological issues because these companies have the same aluminium cleaning equipment. On environmental issues: e.g. air pollution (VOC emissions), environmental reporting requirements companies mainly communicating during national workshops.

Recommendations for further improvements

• General
• Considering supply chain aspect in communication with suppliers. With the marketing of new products introduce environmental aspects to make a client aware about environmental aspects.
• Work and communication with suppliers
• Develop and document clear criteria for the supplier and material choice.
• Set environmental criteria for choice of materials (e.g. VOC, less hazardous, using organic materials etc.).
• Set targets for different environmental performance measures of materials and technology suppliers (e.g. all should have ISO 14001/EMAS by 2010)
• Develop strategic outlines for introducing environmental friendly technologies and transition to environmental friendly materials.
• Provide comprehensive information on environmental criteria to the staff working with suppliers. Develop the guideline for new coming staff concerning environmental friendly choice and environmental friendly criteria. Update the manual every second year.
• Communication with clients
• Screen the market regarding requests of environmentally friendly products. Contribute yourselves to the awareness raising of clients with regard to the environmental issues (articles, actions, trainings of the retailers etc.)

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Printing

OÜ B2 (Estonia)

Introduction

B2 is Estonian printing house producing different kind of paper materials (e.g. brochures, leaflets, labels). It was chosen for pilot study because they were aware of supply chain communication (aspects) before this project, but did not have included environmental issues under supply management and therefore wanted to improve these measures at company. The management of company is strongly supporting environmental activities and aim is to get environmental management certification (ISO 14001). Environmental changes and decisions base on satisfaction of foreign clients, these clients always require environmental management certificates or related measures implemented at company.

Company profile:

Existing Supply chain-communication scheme

Main actors in supply chain communication

B2 is producing products only for orders, not directly for general public.

Development of product and purchase of materials

Process of purchase starts with order from client who tells which material (e.g. paper) he wants. Then marketing specialist calculates amounts of needed raw material (e.g. size of sheet of paper is calculated with special computer programme which aim is to produce less waste) and gives info to warehouse. Warehouse specialist calculates the present raw material status and needed mounts (aim is not to purchase too much to let material stay). In case of new chemicals purchase production director sets criteria and the supplier is chosen by production director, administrative manager and printer. Purchase is always done by warehouse persons. After purchasing chosen chemical all specialists (production directors, manager, administration manager) are reading and evaluating specification (safety data sheets) and printer gives final decision about usage of that chemical in production.  

Marketing of products

Marketing department is responsible on communication with clients and consumers, in case of problems production manager assists. For printing house most important are client requirements; own company environmental aspects are not stressed if client is not asking.

Conclusions on communication directions and supply chain management

Communication with suppliers

• Company do not have definite criteria for choosing the supplier, because there is small choice of suppliers in Estonian market. Therefore the cooperation with suppliers is stable and secure. All materials are purchased from local suppliers of foreign producers - all are known and respected producers. Communication with suppliers about environmental issues is not consistent, it goes according client wish: if client wished to get, then it is required from supplier.
• Main criteria for supplier choice are determined according client wish.  Environmental performance measures of suppliers are not asked but in some cases environmental criteria of materials are considered:
• for chemicals: no hazardous substances in inks/paints – especially important is it in case of printing labels for food products and medicines.
• for paper: less waste.
• Environmental criteria of material is set by production director long time ago, but this criteria is not documented.
• Suppliers themselves do not often provide trainings or information about new environmentally friendly materials, except paper suppliers. Paper companies are presenting and giving trainings on new products (including also environmentally friendly paper products), but not on overall environmental supply aspects,
• Direct communication with suppliers is done by warehouse specialists. There are also involved marketing person (who gives technical specification in case of paper products) and production director (which gives criteria for chemical products). Staff of the warehouse are not involved into the implementation of environmental strategies in company. But they are very closely cooperating with production department which tasks are to set criteria for specific chemicals, etc.
• Staff in the purchasing department is not trained on environmental issues, they not have any instruction manuals nor internal training of new staff.

Communication with customers and consumers

• Marketing department communicates with customers. In case of further and specific questions also production department is involved.
• For marketing department most important are client requirements. Own company environmental aspects are stressed and communicated to new big clients. 
• Marketing department has not got special trainings on environmental aspects, their work base to satisfy client requirements. Usually clients have own wish what is considered and environmental aspects are not stressed. If client has no wish regard the product, then they help to choose, but environmentally friendly solutions are not first they propose. First is to know what is most important to client – usually it is price, speed, security.
• As B2 is not producing directly to wide public, then they are also not aware about final consumer environmental awareness and do not communicate any environmental information to the general public. Also they are not putting any labels into their products.

Communication with other companies

• Communication with other companies bases on personal relations; no open communication between companies as all information is very confidential.

Recommendations for further improvements

• General
• Set specific qualitative and quantitative environmental targets for the outcomes, inputs and processes. Make it stated in the written form.
• Incorporate environmental issues into existing supply chain management activities and design, procurement, and distribution processes. Remember: The supply chain starts from the origin of the raw material and ends once the product has been discarded or recycled.  
• Work and communication with suppliers
• Develop clear criteria for the supplier and material choice.
• Set environmental criteria for choice of materials (e.g. less waste, no content of hazardous substances etc.). Sourcing decisions must take into consideration safety issues, and ability to treat compounds and effluents.
• Set targets for different environmental performance measures of your suppliers (e.g. all should have ISO 14001/EMAS by 2010).
• Consider environmental capacities of the supplier for the time being or for the future (in case you want to change product or process, if they will be able to provide you with services).
• Set the working group to develop and/or update those criteria regularly (1-2 times a year).
• Involve environment, occupational safety, manufacturing, marketing specialists.
• Document the criteria.
• Train the people working with suppliers on use of those criteria. Develop the some instruction manuals for use and internal training of new staff.
• Practice clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations. Ask them for additional services not only for sale!
• Tell them about your expectations towards their environmental performance.
• Ask them for trainings on environmental issues.
• Feedback about performance of their products.
• If you plan to change technologies, ask them to contribute/ be involved in the basic product development work; the early integration of suppliers into all decisions affecting them is critical to environmental effectiveness.
• Request up-to-date information on environmentally friendly materials and technologies.
• Visit them to see their environmental performance.
• Turn back to suppliers with the questions of waste treatment.
• Work of purchasing department
• Inolve purchasing department into the implementation of environmental strategies in your company. Include into the procedures for purchasing department the responsibilities for the screening of environmentally friendly materials, technologies, less harmful substitutes.
• Make sure your purchasing interface with engineering to ensure that materials bought can be recycled or reused, or meet resource/waste reduction goals, do not create new environmental problems etc.
• Purchasing executives need to be familiar with and use key environmental tools, such as life-cycle management, environmental auditing of suppliers to assess their environmental capability, evaluation of substitutes, environmentally sound packaging, environmental performance management. These issues should be included into the current training modules already. Make them regular! Prepare the instruction manuals for use and internal training, especially new staff.
• Communication with customers and consumer
• Create the strategy how to communicate your environmental performance to your customers. Involve into this process environment, occupational safety, manufacturing, marketing, research & development specialists.
• Train the people working with customers to make them able to highlight the aspects and benefits of your environmental performance.
• Screen the market regarding requests of environmentally friendly products. Plan your environmental changes/ decisions (e.g. whether to implement EMAS/ISO 14001, Ecolabel…) on the customer-driven demands.
• Have an “open” approach to inform customers, general public about your environmental performance, e.g. some designed labels for products. 
• Communication with other companies in the field
• Cooperate with other companies in providing joint trainings on environmental issues for your suppliers (e.g. group of companies partnering with universities to provide training to their suppliers).

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Krauklītis Ltd. (Latvia)

Introduction

Krauklītis Ltd. is a Latvian printing house with over 15 years experience in producing paper stationery (e.g., forms, office and school paper stationery).

It was chosen for a pilot study because the company is aiming to apply for the EU ecolabel (“EU flower”).  The company has already experience in producing note books using recycled paper. Note book cover contained information to customer promoting “green thinking” and changing consumption behaviour towards environmentally friendly products e.g., notebooks produced from the recycled paper. Company is selling their products in Latvian, Estonian and Lithuanian as well as in Scandinavian and German markets thus environmental performance is an essential factor for successful penetration into foreign market.

Company profile:

Existing Supply chain-communication scheme

Main actors in supply chain communication

Supply chain communication starts upon a certain order of a client.

Development of product and purchase of materials

• Currently the company does not have a particular environmental strategy. It is envisaged to develop such strategy when there will be standards set for obtaining the EU eco label (EU flower).
• The Marketing department communicates with the Production department transferring information on clients requests (e.g., paper, colours, etc.).
• Production department cooperates with the Purchase department, Technologist and Workers safety specialist on selection of raw materials and supplier.
• Purchasing does not interface with engineering to ensure that materials that are specified can be recycled or reused, or meet resource/waste reduction goals.
• Screening of environmentally friendly materials, technologies, less harmful substitutes is not a request for the purchase department
• Purchasing department staff has not obtained particular education or trainings on environmental issues, e.g., assessing supplier’s environmental capability, environmental auditing of suppliers, evaluation of substitutes, environmentally sound packaging, life-cycle management, environmental performance management. There are also no such training materials developed to train new staff.

Marketing of products

Marketing and sales department is responsible for communication with clients and customers. There are 2 sales managers for foreign clients and 2 sales managers for local market. Successful penetration into Scandinavian markets, satisfaction of client demands, including meeting particular requirements with regard to environmental aspects e.g., use of Cl free or recycled paper, use of particular environmentally friendly chemicals upon clients request is prior to the company.

Conclusions on communication directions and supply chain management

Communication with suppliers

• The company has stable long term experience with some 10 suppliers of paper and chemicals. Head of Production department is mostly involved in communication with suppliers.
• Before choosing suppliers, the company goes to visit them and is paying attention on e.g., how raw material is stored at storage places. Approximately once a year the company is visiting their permanent suppliers to see e.g., how paper cutting is performed, how paper is processed, etc.
• Communication with suppliers on environmental issues starts only if there is a particular demand of a client. Then the company approaches a supplier, but there is no other way around communication.
• The company does not have particular expectations towards suppliers with regard to their environmental performance. The main criterion is if a supplier can fulfil company’s clients’ requests.
• Company is not organising trainings on environmental issues for their suppliers or vice versa.
• Suppliers are not involved when the company plans to change technologies or develop new products. If there is a certain request from a client for a quality of colours, then if one supplier cannot supply it, another supplier is approached.
• The company is having contracts with local waste management companies, thus do not seek particularly for suppliers who can collect, clean and reship process waste back to the company.
• Suppliers sometimes send information about their newest products, but there is no particular focus on environmental aspects.

Communication with customers and consumers

• The Marketing and sales department is involved in communication with customers. Besides the head of department there are 2 sales managers for foreign clients and 2 sales managers for local market.
• During the communication with a customer, if there is a possibility to influence the customer’s choice, the company first offers paper from the local paper factory Ligatne (local product - less transportation costs).
• Company has experience in marketing of environmentally friendly products. In 2005 the company in cooperation with “Zaļā josta” (“Green belt” - waste management/ recycling company in Latvia) produced notebooks from recycled paper. Note book cover contained information to customer promoting “green thinking” and changing consumption behaviour towards use of environmentally friendly products e.g., produced from recycled paper.
• The current situation in Baltic markets is that there is no big interest from retail sellers in e.g., notebooks from recycled papers. The arguments are - high costs, paper “does not look nice”, etc.
• Having not successful experience, currently company is not training their customers who are working further with consumers on environmental aspects.
• Currently environmental changes/ decisions in the company are customer-driven. The company produces notebooks on recycled or Cl free paper only upon an order from a client. In such case a certificate is provided that the product corresponds to these environmental demands.

Communication with other companies

• Company quite rarely communicates with other printing companies. Mostly it happens if they themselves cannot fulfil an order of a client. Then the company cooperates with some other companies in the field.
• Although not being a member of any organisation of printing companies, the company would be interested to cooperate with other printing companies for experience and information exchange, e.g., participate in joint trainings, and site visits. Company is open for further improvements and changes.

Recommendations for further improvements

• General
• Set specific qualitative and quantitative environmental targets for the outcomes, inputs and processes. Make it stated in the written form.
• Develop supply chain management related procedures in the company as a standard internal procedure. Incorporation of environmental issues into existing supply chain management activities and design, procurement, and distribution processes.
• Remember: The supply chain starts from the origin of the raw material and ends once the product has been discarded or recycled.  
• Suppliers’ choice
• Develop clear criteria for the supplier choice.
• Set the working group to develop and/or update those criteria regularly (1-2 times a year).
• Document them.
• Include criteria of environmental performance of supplier:
• Set environmental criteria for choice of materials (e.g. reduction in energy consumption through whole life cycle, less waste, decrease release of pollutants etc.). Make it stated in the written form.
• Train the people working with suppliers on use of those criteria. Develop the some instruction manuals for use and internal training of new staff.
• Communication with suppliers
• Practice clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations. Ask them for additional services not only for sale!
• provide them trainings on environmental issues to build suppliers’ environmental management capacity (benefits: opportunities for cost containment, improved risk management and enhanced quality and brand image) or
• ask them for trainings on environmental issues
• feedback about performance of their products
• if you plan to change technologies or develop new products, ask them to contribute/ be involved in the basic product development work; work collaboratively on green design initiatives; the early integration of suppliers into all decisions affecting them is critical to environmental effectiveness.
• seek them to collect, clean and reship process waste back to their company
• request up-to-date information on environmentally friendly materials and technologies
• Work of your purchasing department
• Include into the procedures for purchasing department the responsibilities for the screening of environmentally friendly materials, technologies, less harmful substitutes.
• Purchasing executives need to be familiar with and use key environmental tools, such as life-cycle management, environmental auditing of suppliers to assess their environmental capability, evaluation of substitutes, environmentally sound packaging, environmental performance management. In a future it can more and more affect the sourcing of materials and systems. Purchasing also needs to follow developments relating to innovative forms of environmentally sound packaging that can be used for inbound and outbound logistics. Therefore these issues should be included into the current training modules already. Make them regular! Prepare the instruction manuals for use and internal training, especially new staff.
• Communication with customer/consumer
• Create the strategy how to communicate your environmental performance to your customers. Involve into this process environment, occupational safety, manufacturing, marketing, research & development, distribution specialists.
• Train the people working with customers to make them able to highlight the aspects and benefits of your environmental performance.
• Contribute yourselves to the awareness raising of general public with regard to the environmental issues (articles, actions, trainings of the retailers etc.)
• Have an “open” approach to inform customers, general public about your environmental performance, e.g. some designed labels for products and packaging. 
• Communication with other companies in the field
• Initiate or take a part in the a group of companies sharing ideas on how to improve economic and environmental performance in their supply chains (e.g. best practices in supplier environmental management, new and better tools for implementing and measuring the results of supply chain management programs, benchmarking of performance with environmental, quality, and cost parameters etc.)
• Cooperate with other companies in providing joint trainings on environmental issues for your suppliers (e.g. group of companies partnering with universities to provide training to their suppliers).

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UAB “Lietuvos ryto spaustuve” (Lithuania)

Introduction

UAB “Lietuvos ryto spaustuve” is Lithuanian printing-house company very close linked with the main Lithuanian daily “Lietuvos rytas”. The main production is related with the printing of newspapers, various magazines. Some production is related to printing advertising and other promotional materials. The company was chosen for pilot study because they new very little about supply chain communication (aspects) before this project, but want and did some improvements the supply management inside of company. Environmental changes in the company are justified through workers health issues, cost reduction and quality of the production as well as seeking for innovation by the top management. The clients play a significant role in choosing printing materials and in many times it is not an environmental friendly solution.

Company profile:

Existing Supply chain-communication scheme

Main actors in supply chain communication

As Lietuvos ryto spaustuve is producing products for companies the clients are known and they are not willing to accept changes concerning ink colors because it is related with high risk concerning quality (even small differences in shadings) of the printing products. Concerning other materials (isoprephenol, varnish) clients are not interesting.

Development of product and purchase of materials

Lietuvos ryto spaustuve products

Client contacts the company and has own vision and wishes towards product, paper and colour (also environmental criteria if requested). Marketing department and Production department is cooperating concerning final product. Usually the client wishes do not requesting changes in technologies as well as ink changes. If the client requires something specific like a repousse they are subcontracting other companies.

Marketing of products

Marketing department is responsible on communication with clients. For them most important are client requirements; own company environmental aspects are not stressed if client is not asking.

Conclusions on communication directions and supply chain management

Communication with suppliers

• Main criteria for supplier choice are quality, VOC concentrations, supply time, and price. Usually the work with supplier is stable. Environmental criteria of materials are considered:
• for chemicals: pollutants emission (VOC concentration), health aspect (less hazardous substances and workers are asked to evaluate new product and they feedback are considering in purchasing of material).
• Environmental criteria are defined by top management (director general and technical director), but these criteria are not documented. Local clients are not considering environmentally friendly products – therefore company also do not have pressure to choose more environmentally friendly materials from own initiative.
• Suppliers themselves do provide information about new environmentally friendly solutions trough introducing new materials.
• Communication with suppliers are done by top management and they are considering environmental aspects even as it is related with environmental taxes (VOC and waste). They do not interface with engineering, only in case they are asked, e.g. in case of material purchase with less waste.

Communication with customers and consumers

• Marketing department communicates with customers. For that department most important are client requirements; own company environmental aspects are not stressed if client is not asking.
• Marketing department aware on environmental aspects but they are depending fully on client requirements.

Communication with other companies

• Printing house Lietuvos ryto spaustuve is communicating with other companies on environmental issues: e.g. air pollution (VOC emissions), environmental reporting requirements. The company is initiating cooperation on hazardous waste management for instance regeneration of solvents, cleaning agents and developer.

Recommendations for further improvements

• General
• Considering supply chain aspect in communication with suppliers and clients. Produce the company promotional materials on recycled paper using organic inks. This should demonstrate to the clients that the quality of the final product is not worse than not ecological.
• Work and communication with suppliers
• Develop clear criteria for the supplier and material choice.
• Set environmental criteria for choice of materials (e.g. VOC, minimal or not risk to human health, using organic materials etc.).
• Set targets for different environmental performance measures of materials and technology suppliers (e.g. all should have ISO 14001/EMAS by 2010)
• Develop strategic outlines for introducing environmental friendly technologies and transition to environmental friendly materials.
• Document the criteria.
• Provide comprehensive information on environmental criteria to the staff working with suppliers. Develop the guideline for new coming staff concerning environmental friendly choice and environmental friendly criteria. Update the manual every second year.
• Communication with clients
• Create the strategy how to communicate your environmental performance to your clients. Involve into this process other relevant specialists and staff.
• Screen the market regarding requests of environmentally friendly products. Contribute yourselves to the awareness raising of clients with regard to the environmental issues (articles, actions, trainings of the retailers etc.)

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