The Cool Factor is Critical

Photo: Chevrolet Volt Plug-in

As supply management professionals consider environmental issues, obviously a knowledge of environmental laws and regulations is a must. Such professionals would be wise to mitigate risk by legally transferring the responsibility for environmental compliance to their suppliers where it makes sense to do so. (1)

It is in the area of Ethical Issues where responsibility becomes more of a voluntary process, but in many regards, no less of an important one. Best practice organizations make investments in renewable resources and employ recycling programs. In addition, selecting suppliers that use environmentally friendly technologies as well as recycle is another way supply management professionals can improve their company's ethical awareness. Any time companies can successfully re-use product within the organization rather than leave it as waste is a sign of ethical prudence. (1)

Consider a recent 3-day conference in Detroit where plug-in hybrid vehicles were all the rage. In this forum, business leaders from multiple automobile companies certainly realize the ethics behind environmentally friendly products. But they recognize that making such products fun to use, fun to drive, and in general fun to have is the real obstacle. With noticeably higher sticker prices than similar gas-engine cars, many recognize that the fun factor better be huge.

Maybe someday, buyers and consumers will opt for a more ethical purchase, without regard to price. But until that happens, in order for consumers to be green, per Tony Posawatz, vehicle line director for General Motors' Chevrolet Volt, the "cool factor is critical."

(1) CPSM Study Guide 1: 1-D-2 Establish and monitor environmentally responsible and compliant programs throughout the supply chain and life cycle.