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Environmental principles applicable to supply

chains design and operation
Giannis T. Tsoulfas, Costas P. Pappis *
University of Piraeus, Department of Industrial Management, 80 Karaoli and Dimitriou street, 18534 Piraeus, Hellas, Greece
Received 8 November 2004; accepted 9 May 2005

Abstract

In this paper we deal with the problem of identifying environmental principles for the design and operation of supply chains. The
operations that are included in supply chains are briefly described along with the approaches that are applied in order to improve
their environmental performance. A background of environmental principles for achieving eco-efficiency and building of
environmentally friendly organizational systems is presented and emphasis is put on the application of such principles ‘‘from cradle
to grave’’. Then, environmental principles applicable to particular objects of logistics networks planning are identified and
commented upon. In addition, selective case studies from the literature, which show the applicability of the formulated principles
and their relevance to practice, are discussed. The paper concludes with some remarks regarding the benefits for companies and
societies, in general, that occur as a result of the application of the formulated principles.
Ó 2005 Elsevier Ltd. All rights reserved.

Keywords: Environmental management; Supply chains; Sustainable development

1. Introduction resources at the present time. Thus, an alternative

Earth as a resource system has a limited capacity for
supporting a growing human population with an
intensive exchange of materials and energy with its
environment [28]. Communities, governments, busi-
nesses, international agencies, and non-government
organizations are increasingly concerned with establish-
ing a means to monitor performance and to assess
progress towards sustainable development. The latter is
defined as meeting the needs of the current generation
without compromising the ability of future generations
to meet their own needs [52]. However, it is inevitable
for humans to consume resources to fulfill their own
needs and it is impossible for them not to extract the
* Corresponding author. Tel.: C30 210 4142150; fax: C30 210
4142328.
E-mail addresses: tsoulfas@unipi.gr (G.T. Tsoulfas), pappis@
unipi.gr (C.P. Pappis).
towards sustainable development is to consume the
resources which have less potential for depletion and not
to utilize easily depleted resources.
Closed-loop supply chains and recovery of used
products, in particular, have received much attention
lately due to the above mentioned factors. While
traditional logistics are perceived as managing the
supply of goods and/or services from the producer to
the (end) customer [6] as well as internal logistics, and
input and output to the company, reverse logistics is the
process of planning, implementing and controlling the
efficient and effective inbound flow and storage of
secondary goods and related information opposite to
the traditional supply chain (SC) direction for the
purpose of recovering value or proper disposal [16].
Just as economic globalization creates opportunities and
poses challenges to our ability to formulate macroeco-
nomic policies, so does environmental globalization.
The opportunity for business profit is an additional

0959-6526/$ - see front matter Ó 2005 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jclepro.2005.05.021
 ARTICLE IN PRESS
2 G.T. Tsoulfas, C.P. Pappis / Journal of Cleaner Production
motive for the companies. Relevant legislations in
developed countries derive from the social demand for
environmental protection and the perspective that the
manufacturers should be made responsible for their
products ‘‘from cradle to grave’’ has dominated. How-
ever, it can be claimed that the efforts made so far are
rather limited, while nobody would argue against the
need for a global approach to the situation. Developed
countries or leader firms, mainly, have established
environmental policies for product recovery. The issue
of how effective these policies are is debatable.
The scope of this paper is to identify systematically
environmental principles for the design and operation of
SC. There are though cases where the applied principles,
which derive from the demand for sustainability, may
lead to the improvement of the economic issue as well.
2. The management of materials’ flows from an
environmental perspective
Every product generated, transported, used and
discarded within the SC causes a certain impact on the
environment. This impact is a function of the material
and energy consumed and of the wastes released in the
product’s whole life cycle, which in turn depend upon
the type of the product and the technology used [9].
Thus, it is important to examine all the procedures
related to materials’ flows, in order to opine regarding
the environmental performance of SC.
The first stage in the SC, including the selection of
materials and methods for processing, may be regarded
as product design. Product design and process technol-
ogy typically determine the types of pollutants emitted,
solid and hazardous wastes generated, resources har-
vested and energy consumed [39,45,47]. During the next
communication with selection of materials
suppliers and processes
extraction of virgin
storage
materials
distribution parts production
assembly
storage
suppliers
distribution
retailers/customers
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stage, the forward supply chain, the materials are firstly
processed till the manufacture of the product. The
manufactured items are usually packaged and then
transported to distributors. Finally, the products end in
final users e customers. There are cases though, mainly
concerning job shop, where the products are directly
transported from the producer to the end-user, without
the intermediation of a distributor. The reverse supply
chain starts when the product is no longer operable or
when the end-user decides that he will not use it
anymore. Given that products are not disposed un-
controllably, they are collected and transported to
appropriate facilities, where a selection occurs: some of
them are reprocessed and the rest are properly disposed.
The reprocessed items are finally redistributed and
reused. In some cases the separation occurs away from
the reprocessing facilities.
A graphical representation of the materials flow is
provided in Fig. 1.
Until lately, the main environmental emphasis has
been on the manufacturing phase and to some degree on
the disposal phase. This emphasis has given very good
results, but at the same time the number of products
per household, energy consumption and waste have
increased more and have caused a larger environmental
impact. In the last few years the environmental focus has
shifted from the manufacturing processes to the
products. Therefore, the only alternative is to shift the
focus to products and minimize the environmental
impact in the whole life cycle [1]. Indeed, the appropriate
identification of all life-cycle stages of a product is
necessary for the establishment or optimization of
environmental policies. Any activity in the SC may
have an undesired impact on the environmental chain.
And vice versa, any disturbances in the ecological
balance may affect production activities and social
proper disposal company
recycling
inspection
disassembly
refurbish
repair
direct reuse
retailers customers use end-of-life products
Fig. 1. The materials flow.
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welfare in the long term. In this sense, the SC is
connected in both ends with the environmental chain to
establish a perpetual cyclical operation. The analysis of
the cost-effectiveness of schemes for the recovery of
products is difficult, however, it is useless to do so
without looking at the whole process chain, combining
the logistics aspects with the recovery ones [35].
A set of approaches is applied in order to improve the
environmental performance of SC.
Cleaner production is the continuous application of
an integrated preventive environmental strategy applied
to processes, products, practices and services to increase
eco-efficiency and reduce risks for humans and the
environment. Cleaner technologies extract and use
natural resources more efficiently, generate products
with fewer harmful components, minimize pollutant
releases to air, water and soil during manufacturing and
product use, and design durable goods that can be
reused or recycled [36]. Rather than, for example,
capturing polluting substances after they have been
produced (as with the end-of-process technologies), the
goal is not to produce the harmful substance at all, or to
produce less of it, or a less harmful one [13].
Life cycle assessment (LCA) is a method in which the
energy and material consumption and different types of
emissions related to a specific product are being
measured, analyzed and summoned over the products
entire life cycle from an environmental point of view.
Two LCA approaches are most common: one is based on
detailed process model descriptions and corresponding
emissions and wastes, and the other is based on economic
input/output accounts that are used to construct models
that describe inter-sector flows in economic terms. The
limitations posed by these two major approaches have led
to efforts to develop hybrid LCA models that would
overcome the barriers that are set by these limitations in
order to provide answers to all decision-making groups
that are involved. Hagelaar et al. [23] provide an excellent
analysis regarding LCA in the context of SC. According
to their analysis, there are three types of LCA:
 Compliance-oriented LCA, which concerns comply-
ing to rules and regulations with the help of end-of-
pipe techniques.
 Process-oriented LCA, which focuses on controlling
the environmental burden caused by the production
process by means of production integrated measures
that achieve both compliance with governmental
rules and regulations and a better return.
 Market-oriented LCA, which focuses on the re-
duction of the environmental burden caused by the
design of the product in order to achieve competitive
advantage.
Then the company has to decide what kind of LCA
fits their requirements.
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3. Environmental principles applicable to logistics
networks planning
In the past there have been some observable efforts
from organizations and socially minded groups aiming
at formulating principles towards eco-efficiency (e.g. the
Cleaner Production Programme and the Valdez Princi-
ples). In addition, there have been some business
initiatives with regard to their environmental responsi-
bilities (e.g. the World Business Council for Sustainable
Development). Furthermore, Environmental Manage-
ment Systems (EMS) such as ISO 14000 and EMAS
provide organizations with a structured approach to
plan and implement environment protection measures
and to regularly evaluate their performance and
improvement. An EMS is not prescriptive, that is, it
does not specify how environmental targets should be
met. Rather, it requires organizations to take an active
role in examining their practices, and then determining
how their impacts should best be managed. This
approach encourages creative and relevant solutions
from the organization itself [42].
Environmental sustainability is a value embraced by
the most competitive and successful companies. A firm
needs to find the right processes to internalise environ-
mental issues in a way consistent with its long-term
interests. The appropriate processes are different for
every firm, and there are no ready answers as to which
processes are appropriate under what circumstances.
Therefore, a good framework can help managers find
the appropriate processes by providing a way of
structuring their thoughts [7]. Moreover, assessing
environmental impacts for cleaner products may assist
companies in their quest for continuous improvement by
identifying ways of maximizing profits through reducing
waste and liabilities, raising productivity and demon-
strating the company’s sense of responsibility towards
its customers and the environment.
The challenge facing industrial firms is to work out
ways allowing them to successfully incorporate envi-
ronmental considerations into their overall strategy.
To this purpose, in addition to applying cleaner tech-
nologies, firms try to develop innovative management
practices enabling them to meet environmental con-
straints and support sustainability [9]. The coopera-
tion of companies could also lead to a more effective
approach.
As mentioned earlier in this section, an EMS is rather
descriptive. In this paper, a prescriptive approach is
presented. The principles proposed below have been
formulated based on the literature, where they may be
found either as explicit statements (prescriptions or
guidelines) or in treatments of subjects relating logistics
to environment, which implicitly suggest such principles.
Some of these principles may also be inferred from
company practice.
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It is important to point out that the proposed
principles are not applicable to all cases. This would
occur if, for example, the product design would be
launched with no constraints at all. In real cases though,
usually not all the parties that contribute in SC meet the
necessary conditions for eco-optimization. In such cases
total redesign should be applied if feasible. Besides,
manufacturers should not only be held responsible for
the processes that take place in their facilities, but also
for the selection of suppliers and partners. The proposed
principles are definitely relevant with the ones that were
formulated by the initiatives that were mentioned in the
beginning of this section. However, they are more
specific, they cover the majority of functions that are
met in product systems and they are directly connected
with the target of closing the loop of flows.
The environmental principles applicable to SC design
can be classified into 6 groups corresponding to respec-
tive company functions that relate directly to the mate-
rials’ flows that were described in Chapter 2 (see Fig. 1):
1. Product design
2. Packaging
3. Collection and transportation
4. Recycling and disposal
5. Greening the internal and external business envi-
ronment
6. Other management issues
Apart from formulating the environmental principles,
mention is also made to selective case studies from the
literature, showing the applicability of them and their
relevance to practice.
3.1. Product design
The design process is one of the major tasks for any
firm, responsible for two major types of design activities:
new product design and development, and process
design and development. Both product and process
designs are closely interrelated and greatly influence
each other while simultaneously impacting the environ-
ment. Both aspects must be considered to ensure that
the firm has developed and implemented effective and
efficient designs and processes. R&D directed at process
change and product improvement can lead to higher-
value products and reduced environmental impacts.
Designers, mostly concerned with product performance,
must take into account also the effect of design details
on energy/material requirements for manufacturing, use
and secondary use (repairability, remanufacturability
and recyclability). Redesigned products will only be
effective if they are able to provide at least the services
of the products they replace. By extending the useful
life of equipment items, additional raw materials are
not needed to produce new items. In some cases, landfill
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disposal will not be required or that fate is delayed for
a few years. A carefully constructed set of economic
instruments may provide the incentives needed to lead to
design changes that help move towards sustainability.
The following principles may apply in product design.
3.1.1. Design and develop recoverable products, which
are technically durable, repeatedly usable, harmlessly
recoverable after use and environmentally compatible
in disposal [21]
Materials with a high recycling rate and which have
the least impact on the environment, both in use and
origin, should be preferred. Where possible, environ-
mentally safer substitutes should be used and the abuse
of products should be actively prevented. Digital uses
the 6R approach (Recycle, Reclaim, Refurbish, Re-
manufacture, Resell and Reuse) on their used products
[11]. Xerox offers a 3-year total satisfaction guarantee
on equipment containing reprocessed parts to demon-
strate its confidence in the products, the same as that
given on new equipment [32]. In addition, Xerox
designers choose a minimal number of materials from
the Xerox material environmental index to simplify the
eventual segregation of materials and to avoid hazard-
ous materials. The index specifies the relative nature of
various materials’ impact on the environment and helps
designers choose non-toxic materials that resist equip-
ment to assert that products should wear during normal
use and lend themselves well to reuse and recycling. IBM
also develops design specifications for its new products
to improve product’s end-of-life material recovery [19].
Billatos and Nevrekar [4] underline the Mercedes Benz
design efforts, which include the selection of environ-
mentally compatible and recyclable materials for com-
ponents, the reduction of the variety and the volume of
plastics used and the avoidance of using composite
materials as much as possible. Hundal [25] reports that
another automotive company, BMW, has been trying to
introduce more recyclable components in the original
design so that it can produce cars out of 100% recycled
parts. Finally, Rosenbach and Lindsay [44] have
reported many cases of the application of this principle
in various companies.
3.1.2. Produce using minimum energy and materials
The wasting of materials and energy either due to
inappropriate design, or due to excessive number of
defects should be avoided. Intel has worked in in-
creasing the number of transistors in a single chip, which
will result in fewer chips to build and fewer chips to
dispose [22].
3.1.3. Secondary raw materials should be given priority
in usage
Primary raw materials should be used only in cases
where there would be no stock of secondary ones.
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Furthermore, in many cases this policy is also money-
saving. Such a case is reported by Tsoulfas et al. [49] and
by Daniel et al. [10], where lead is recovered and
recycled from lead-acid batteries and then it is used for
the production of new ones. In addition, Recopol
Furniture report that they make furniture which
incorporates up to 75% recycled resins and plastics that
come from used appliances such as computers, vacuum
cleaners, telephones, televisions, washing machines and
refrigerators, which would otherwise go to the landfill
(http://www.wharington.com.au).
3.1.4. Use eco-friendly energy production, reduce water
usage and keep control of pollution sources
Using less energy is obviously good for the environ-
ment. It is also self-evidently good for business because
it cuts companies’ costs, and eventually avoids potential
environmental liabilities. It is, therefore, a prerequisite
to the long-term sustainability of business. To replace
non-renewable and polluting technologies, it is crucial to
support the use of renewable energy resources, as well as
to reduce energy consumption. The identification of
where great amounts of energy are used could sub-
sequently lead to redesign of the product or its use in
order to make significant energy reductions. Major
improvements in energy efficiency can often be achieved
at little or no cost, even with net savings, through the use
of targeted programs. Installed water-saving techniques
and the use of closed re-circulating systems can lead to
reduction of water use. In addition, the elimination of
the stochastic factors, which affect pollution, may lead
to greener production.
3.1.5. Use standardized parts
Such a policy ensures that these parts could be reused
not only by the original producer, but also by a larger
group of producers. For example, automotive compa-
nies use standardized screws, speedometers, etc. In most
cases this policy is also money-saving. Pappis et al. [38]
report the case of containers that are standardized and
can be used by different companies. Standardization is
of major importance in Xerox and focus is paid
standardizing components as much as possible between
product families, thus simplifying and optimizing the
opportunities for reuse [32].
3.1.6. Provide for easy disassembly of the product
This would lead to cost, time and energy savings. The
opposite case would make the disaggregation of the
product unpractical and costly. It has been reported that
Chrysler, Ford and GM researchers are trying to
improve disassemblability features whilst improving
the assembly ones [22]. BMW has been using a colour-
coding scheme for differing plastic materials for the past
30 years, which allows the development of efficient
dismantling and disassembly techniques [25].
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3.1.7. Reduce by-products and get the best out of them
During manufacture by-products are also produced.
Some of them can and should be reduced and/or reused.
The rest must be eliminated and disposed properly.
3.2. Packaging
Packaging design is important for attaining a compa-
ny’s environmental objectives. Though it serves certain
needs related mainly to the distribution of the product
(e.g. safe transportation), it is not part of the actual
service offered by the product. In any case, it affects
environment in many aspects. This is the reason why
regulations concerning packaging constitute an essential
part of governmental policies for environmental pro-
tection. The following principles may apply concerning
packaging.
3.2.1. Limit packaging to the necessary size
The opposite case not only is contrary to environ-
ment protection, but it also affects transportation
negatively. Furthermore, environmentally safe packag-
ing can be used as a marketing argument.
3.2.2. Design packaging for refilling or recycling and
use standardized packaging when applicable
There are examples of standardized bottles, crates,
boxes, pallets and containers, which may be used by
different companies. In re-organizing the packaging
policy, Xerox changed its packaging and established
packaging-reuse centers in the UK, the Netherlands,
and the US. In addition, it reduced the amount of
internal packaging to minimize waste [32].
3.3. Collection and transportation
Despite the obvious environmental gain from used
products’ recovery, collection and transportation of
recovered products have an environmental cost. Mini-
mizing such a cost is important in order to increase the
total environmental gain from recovery. Principles
applicable in this phase of the reverse supply chain are
the following.
3.3.1. Formulate a policy for the recovery of used
products
Such a policy favors the maximum utilization of used
products. Companies may decide either to undertake the
recovery of used products on their own, or to establish
cooperation via local or more extended networks for the
collection and recycling of similar products. United
efforts may be more effective and provide higher
recycling rates. Also, recovered products often suit more
than one manufacturer. Leasing is a policy that has
received much attention lately regarding its environ-
mental dimension. Indeed, companies that lease their
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products instead of selling them have better chances in
the management of their used products. Such cases are
reported in detail in Fishbein et al. [14].
3.3.2. Consider using existing forward supply chain
facilities and transportation system as much as possible
for the reverse supply chain
Transportation and the consequent environmental
effects can be significantly limited if the recovery of used
products can occur at the same time or in combination
with the distribution of new products. The theoretical
minimal average transportation distances can be de-
termined using a tool for allocation and route planning.
An application of this principle is reported by Vergitsi
[50], where the case of used beverage bottles of Hellenic
bottling company (3E) is examined. The tracks that
carry the beverages do not return empty to the ware-
houses of 3E, since they carry the empty bottles from the
consumer spots, in order to be reprocessed. Krikke et al.
[31] conclude that in the case of Printed Wiring
Assemblies of Honeywell the forward supply chain is
used in order to facilitate the returns of spent products.
3.3.3. Classify used products as early in the recovery
chain as possible
This eases the planning of storage of used products
and redundant processes are avoided. Daniel et al. [10]
mention that used lead-acid batteries are classified in the
electricians’ shops, where they are bought by customers.
3.3.4. Treat hazardous materials safely
It is necessary to ensure that the generation of
hazardous wastes is reduced and also that adequate
disposal facilities are available, for the environmentally
sound management of hazardous wastes. In Ohio
Manufacturer’s Association Case Studies in Team
Excellence [37] the initiative of a Chrysler team from
the Jeep plant in Toledo is reported, which was formed
to respond to state legislation prohibiting the disposal of
certain biodegradable and recyclable materials in land-
fills. The establishment of collection points and of
a network of recyclers for such materials together with
setting up returnable packaging systems with suppliers
led to significant savings in an annual basis.
3.4. Recycling and disposal
After its useful life, a used product may be either
disposed or recycled (generally recovered). As in the
phase of collection and transportation, recycling and
disposal may significantly contribute to the total
environmental gain and the attainment of the environ-
mental goals of a company. Ideally, companies should
borrow from natural cycles to design their systems
as part of a larger natural cycle, where materials
are borrowed from and returned to nature, without
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negatively affecting its overall balance. The following
principles may be applied regarding recycling and
disposal.
3.4.1. Close the supply loop by recycling effectively and
efficiently
The biological designs of nature provide a role model
for sustainability. The goal is to work continuously
towards closed-loop production systems and zero-waste
factories, wherein every output is returned to natural
systems as a nutrient or becomes an input for
manufacturing another product [12]. Designing for
recyclability is essential but recycling becomes unpro-
ductive when the energy, materials and pollution used in
collecting and processing used products exceed those
used to produce the goods in the first place. Closing the
loop by extending responsibility throughout the life
cycle chain ensures total product and service steward-
ship. Mercedes Benz started taking scrap cars back in
1991 and has been performing the material recovery
process as part of their environmentally friendly pro-
duction program [4].
3.4.2. Reduce the volume and amount of materials
going to landfill [5] and consider alternative uses of
used products or wastes
Using appropriate techniques one can compact the
scrap. In addition, smaller landfills can be used.
Alternative uses of used products extend their life cycle.
For example, used tires can be used as a protective in
seaports, speedways, etc.
3.4.3. Support the development of markets for
recovered components and materials
The environment can be the basis of the creation of
new markets or of the reorganization of existing ones for
certain (material) flows resulting from the production
process. With such a reorganization, materials that
would otherwise end as wastes would turn into useful
by-products [13].
3.4.4. Locate recycling facilities close to customer
markets [2]
Such a policy would ease the direct delivery of used
products from end-users. Furthermore, companies can
also offer waste disposal services.
3.5. Greening the internal and external business
environment
Greening the business environment refers to man-
agement practices, which aim to improve the internal
(company’s personnel) as well as external (suppliers,
customers) environment. Supply relationships may pro-
vide a key way for business to influence the sustainabil-
ity of their products and services through improvements
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to the manufacturing system, since it includes duties
such as vendor selection, material selection, outsourcing,
negotiation, buying, delivery scheduling, inventory and
materials management and, to some extent, involvement
in design [46]. The personnel of a company are
responsible to incarnate the company’s policies. Thus,
they should be aware of the environmental impacts of
their attitude. Finally, ‘‘greening’’ the customers in-
cludes policies to raise their level of environmental
awareness and make them partners to the environmental
tasks of the company. The following principles may be
applied regarding greening the business internal and
external environment.
3.5.1. Impose higher (and greener) standards on
suppliers [7] and have a close cooperation with them
Adopting specific procurement/purchasing policies
requiring suppliers to apply sustainable development
practices may help companies avoid buying-in waste and
subsequent pollution problems. The links between
material use, production process and environmental
impacts in manufacturing facilities suggest that the
important role of suppliers in acquiring and assimilating
external information, extending the capacity of a firm to
implement radical innovation, may also hold in the area
of environmental innovation. Geffen and Rothenberg
[18] examined three case studies in the automotive
industry, focusing on the paint process, in order to
examine the role of partnerships between OEMs and
their suppliers in improving the environmental perfor-
mance of manufacturing operations. The results suggest
that closer supplieremanufacturer relations, where the
relevant product expertise resides in the supplier, can
contribute to improved environmental performance
through the implementation of innovative materials
and related processes. As suppliers learn more about the
manufacturing operation, they are better able to un-
derstand the kinds of products that best serve the
customer’s needs. Within the protection and trust of
a partnership with the manufacturer, they are more
willing to share their innovative ideas. Rao [40,41]
reported some facts regarding the situation in South
East Asia. In particular, he analyzed the way with which
companies are ‘‘greening’’ their suppliers. For instance,
Ford Motor Company has demanded that all of its
suppliers with manufacturing facilities, comprising
about 5000 companies worldwide, must obtain a third-
party certification of EMS for at least one of their plants
by the end of 2001, and for all plants by 2003. To help
the suppliers establish their own environmental man-
agement system Ford offers awareness seminars and
training for its suppliers, for them to be like any world
class organization and attain their goal of environmen-
tal excellence. Nestle Philippines conducts seminars and
provides technical assistance to its suppliers and
contractors to help them implement an ‘‘EMS that is
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consistent with Nestle’s environmental management
system (NEMS)’’. Indeed, in order for a company to
be able to ensure that only environmentally friendly raw
materials are used in the production processes, it is
essential for it to closely monitor the production
processes of all of its suppliers as well as their mode of
delivery and transportation.
3.5.2. Indicate the return, reuse and recovery
possibilities [21], make available the necessary
information of your products concerning recycling
and provide adequate safety instructions [7]
The end-users should be aware of what they could do
after the product has completed its life cycle. Thus,
customers can make educated decisions about what
products to buy and how they should treat them after
the end of their life cycle. Since it is difficult to
predetermine where the products would end in, it should
be easy for everyone to identify the product. An easy
solution could be the use of labels with serial numbers or
bar codes and the storing of the relevant information in
a database [35]. In order to ensure that equipment and
components do not end up in landfill sites, Xerox marks
them with recycling symbols and reprocessing codes that
explain the recycling and reuse potential and strategy for
specific parts. Every drawing of a new part must contain
the instructions for the end-of-life process. It also began
using bar-coded labels to improve material tracking [32].
In 1999 over 20 car manufacturers formed a consortium
called IDIS2. The aim of IDIS2 is to make recycling of
end-of-life vehicles more efficient by providing product
related information to the dismantler. The consortium
developed an ‘‘International Dismantling Information
System’’ (IDIS) which provides product related in-
formation to dismantlers [26]. This system provides
information such as the location of hazardous materials,
dismantling times and tools and the identification of
recyclable materials. Pappis et al. [38] refer to the case of
BCL, where appropriate coding schemes are used by the
company in order to be able to track their containers
any time, but also to provide information regarding the
dimensions and the materials of their containers.
3.5.3. Motivate customers and keep records of where
they deliver used products or packages
Motivation is important in order to maximize return
volumes. On the other hand, keeping records of where
used products and packages end in may lead to a better
planning of collection and transportation networks.
Vergitsi [50] reported that the consumers of 3E
beverages get a fee when they return empty bottles to
their collection points.
3.5.4. Introduce the eco-objectives to the personnel
Key to recovery success is the involvement of
employees at every level in order for them to promote
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8 G.T. Tsoulfas, C.P. Pappis / Journal of Cleaner Production
the concept of eco-efficiency. Employee involvement
utilizes suggestion systems, self-directed work teams,
quality circles, process improvement teams, and various
other techniques to empower workers to make process
changes. The adoption of employee involvement prac-
tices and their impressive outcomes is frequently
showcased in company-, industry-, and government-
sponsored competitions [24]. Corbett and Cutler [8]
noted that, in their case studies, respondents identified
training on a broad front within the organization as key
to the companies’ ability to make headway with all
business activities including environmental improve-
ment. Kitazawa and Sarkis [29] performed a research
in Acushnet Rubber Company, Compaq’s resource
recovery facility and Hyde Manufacturing and noted,
among others, that, in order to promote employee
involvement, all three organizations provide their
employees with systematic training courses that are
designed to enhance environmental awareness, and the
knowledge and skills necessary to solve complex
problems. The case of AT&T [20] outlines the role of
employee involvement, since an AT&T team that had
been cited as one of the area’s worst polluters completely
eliminated the primary source of toxic emissions with
operational changes that improved both the unit cost
and operational efficiency of their facility [37].
3.6. Other management issues
Other management issues involve strategic policies
that apply to the whole SC and affect or determine the
companies’ environmental targets. In addition, they
refer to the incorporation of marketing strategies and
information technology, which not only may add value
to a product, but they enhance the environmental
endeavors of a company. Principles relevant to these
issues are the following.
3.6.1. Establish flexible manufacturing and
management policies [30]
Companies that manipulate materials and energy
should be organized in such a way that they could
correspond rapidly to changes in management and
processes, since sustainable development requires
a long-term perspective for planning and policy de-
velopment. Changing demands for goods and services
will also push design changes. The study of alternative
design schemes is necessary in order to achieve eco-
optimization. (‘‘Do the same but do it better or try to do
something different.’’) [15].
3.6.2. Use effective accounting systems and
management tools
The use of accounting systems that account for the full
life cycle costing of a product or service, and the
environmental impacts it creates, can be expected to
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provide additional information that will influence the
design process. Many companies have discovered that
there are economic advantages to changing designs
towards being more sustainable, whether because they
are easier to market or cheaper to produce. Success stories
in companies realized with the significant support pro-
vided by EMS are commonly presented in research
papers. The most applicable benefits are better organiza-
tion and documentation of their environmental activities,
increased legal certainty, improved image, greater em-
ployee motivation, reductions in resource use, enhanced
plant safety, and optimization of process flows
[3,17,33,34,43,51]. Moreover, similarities with Quality
Management Systems are identified, since the two sys-
tems share many common aspects that appeared to
accelerate the transfer of organizational learning [8].
However, there are often expressed some doubts re-
garding whether or not firms have incorporated basic
environmental considerations into their strategic plans,
despite the fact that firms may have adopted a range of
tools for environmental management. Instead, firms may
have added environmental management tools without
truly transforming their operations because they may
have been motivated by attempts to improve public
image [48].
3.6.3. Extend service and enhance product function at
the usage phase to improve eco-efficiency
Companies are manufacturing ‘‘smarter’’ products
with new and enhanced functionality e and selling
services to enhance the products’ functional value. The
world is moving from a supply-driven economy to a
demand-driven economy. Companies are rethinking how
they can satisfy demand and are developing customized
responses to client needs. Consumers are increasingly
gaining access to product services by leasing goods,
particularly durable goods, rather than buying them
outright [12]. In addition, extended service and func-
tionality increase the value of a product with posi-
tive consequences for the company. Intel has developed
a chip level technology to put PCs in a ‘‘sleep’’ mode
in which the power consumption is reduced [22]. Toyota
has developed a half-electric powered car called Prius
that has significantly low emissions (http://www.toyota.
com).
3.6.4. Establish product update policies
Several companies, e.g. those dealing with computers
and other electronics, can adopt such a policy. As
a result, recovery practices are enhanced, while an up-to-
date recycling schedule may be formulated. In 1997,
Xerox launched its new range of digital ‘‘Document
Centers’’, products designed so that upgrading is
permitted and also various add-on products and
technology advances with different configurations pro-
viding a variety of functions are supported [32].
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G.T. Tsoulfas, C.P. Pappis / Journal of Cleaner Production
4. Conclusions
Companies are in a continuous worldwide interaction
with society. Consequently, the legislations and the
streams should be taken under consideration. Manu-
facturers share responsibility for products from cradle to
grave along with suppliers, consumers and others in the
life cycle chain. Manufacturers, suppliers, users and
disposers of products all have a role to play in
minimizing the negative environmental effects of prod-
ucts and terminal emissions. Sharing responsibility for
environmental effects will yield a more efficient use of
resources, cleaner products and technologies, improved
relations between companies and communities and
responsible consumer choices.
Industrial practices, individual habits, and the laws
produced by governing bodies all need to bring con-
sumption of non-renewable resources and production
of harmful pollutants into line with what such bodies
and ecosystems consider healthy. Until lately, industry
only paid for the initial production of a product, while
consumers and the taxpaying public had to pick up the
tab for the harmful side effects of the pollution generated
by that production. Industries are more and more
held accountable for the clean-up costs of their pollution
and for the long-term damage to the health of humans
and the ecosystem. Increasing acceptance of responsibil-
ity by producers for their products after sale may ensure
that post-sale management of these products will increas-
ingly come into the design equation. If the producer has
no responsibility for reuse, recycling or disposal, there
is little incentive to design products that are durable,
easily disassembled for recycling, or biodegradable.
Businesses have many bottom-line incentives to adopt
sustainable development. Many firms take the view that,
rather than maximizing profits within a fixed set of
environmental constraints, it is better to modify these
constraints in order to gain a competitive advantage.
Environment is introduced as a new criterion for
differentiating among products extending to the de-
velopment of environmental standards or labels [13]. For
starters, a sustainable approach can lead to internal cost
savings from using energy more efficiently, producing less
waste and recycling materials. Second, sustainability can
open new markets, as consumers are attracted to
companies that have invested in green technologies.
Third, opportunities abound to assist other companies
and communities e both at home and in emerging
markets e to use energy, water and by-products more
efficiently and to find beneficial uses for wastes [27].
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