A Message from the CMS Forum Director

Welcome to the Spring 2009 issue of the CMS Insider.

As we move past the first quarter of 2009, it appears the strong trends in sustainable production, increasing efficiency and cost reductions continue in this economic climate.  This trend is consistent globally as we see the interest in CMS accelerate internationally over the past year.  In addition, the core principles of CMS exemplified in improving IT, supply chain, and process efficiencies are the same principles applied to improving facilities management.   The CMS industry is already part of the drive towards reducing energy use, water use, waste and MRO overhead at the facility level.  Many of the articles highlighted in this newsletter issue reinforce these trends we are seeing in the field.

As the CMS Forum embarks on its 10th year, we continue to strive to understand how CMS will meet the changing needs of customers and the global economy.  Thus, the CMS Forum has commissioned the ChemQuest Group Inc. to research and produce the 2009 CMS Industry Report, due for publication this fall.  We look forward to an updated review of the CMS landscape and possible new opportunities for expanding CMS and its impact.

And a final note… it is with a heavy heart that we mourn the recent passing of CSP’s Deputy Director, Thomas J. Votta.  With tremendous intellect and humor, Tom worked tirelessly over the past 13 years to investigate, test and grow the CMS model internationally.  The CMS community has lost a true advocate, passionate environmentalist, and a great friend.  His remarkable achievements and writings will endure to inspire others.

Warmest Regards,

Jill Kauffman Johnson
CMS Forum Director



Korea targets CMS as a key low-carbon green growth strategy
by Jill Kauffman Johnson, Executive Director, CSP

On March 27, 2009, Chemical Strategies Partnership signed a Memorandum of Understanding with the Korea National Cleaner Production Center.  The purpose of this memorandum is to provide a framework for cooperation and collaborative activities on chemical management services. The Korea National Cleaner Production Center (KNCPC) was established under the financial support of the Korean Ministry of Knowledge Economy to promote environmentally sound technologies to Korean industries through the support and dissemination of cleaner production technology development projects. The government’s efforts to promote CMS have included two CMS training programs, CMS pilot programs with Samsung Electro-Mechanics and Kia Motors, as well as several forums to spread awareness of the model.

Read the article.



CMS Round Table Meeting – Huddersfield, UK
The first Chemical Management Services round table meeting was hosted by Yorkshire Chemical Focus on February 10, 2009 to begin promoting the CMS model in the UK region.  The meeting was attended by current and potential CMS providers and users as well as other interested parties.  Those attending included representatives from Ciba Specialty Chemicals plc, Claverham Ltd, Haas TCM, Henkel Corporation, Houghton plc, PPG Industries, Quaker Chemicals Ltd, Royal Haskoning, Severn Trent Water Ltd, SNF (UK) Ltd, Veolia Environmental Services Ltd and Yorkshire Water Services Ltd.

CSP Executive Director, Jill Kauffman Johnson, introduced the CMS model followed by Sonja Tye, Senior Supply Chain Coordinator of Claverham Ltd (part of Hamilton Sundstrand), who explained how Claverham has introduced the CMS program into their UK sites. Sonja further outlined the processes, procedures and benefits of their CMS program, including savings of over € 250 million from process efficiencies, waste reduction, and improved chemicals selection.
Read the full article.

CMS Forum Presents Second Annual CMS Training Program
In partnership with Chemical Strategies Partnership, the CMS Forum presented the second annual in-depth CMS training program at the Lenox Hotel in Boston on February 24-26. The program was produced in collaboration with the Toxics Use Reduction Institute (TURI).  TURI provides training and information to help companies comply with the Massachusetts Toxic Use Reduction Act. The mix of CMS customers, suppliers, and Massachusetts-based companies contributed to a lively and productive discussion on the future of chemicals and resource management.  This year’s program featured additional interactive exercises as well as a CMS Program site tour at Raytheon’s facility in Andover, MA.  Another program highlight was an in-depth 4-part case study on UTC Pratt Whitney’s North Berwick, Maine facility, featuring program perspectives from corporate, plant management, EH&S, and the site’s CMS supplier. Interested in future CMS trainings? Contact Aarthi Ananth.

CSP conducts CMS training for the United Nations Industrial Development Organization
CSP will be conducting a CMS training for the United Nations Industrial Development Organization (UNIDO) Cleaner Production Programme.  The Workshop takes place in Belgrade, Serbia April 20-24 and gathers experts who are working to improve chemical management and cleaner production in numerous developing countries.
For more information on UNIDO’s Cleaner Production Programme and integrating CMS, please contact Jill Kauffman Johnson.

Upcoming 2009 CMS Industry Report
CSP has commissioned The ChemQuest Group, Inc. to research and produce a 2009 CMS Industry Report. The report will be published in the fall of 2009. To participate in the 2009 survey, please contact Laura Keller. Survey participants will receive 30% off the report cost.

CMS Forum Conference Call on Carbon Emissions Accounting
The March CMS Forum conference call on Carbon Emissions Accounting occurred just prior to the recently proposed EPA regulations to mandate GHG reporting by facilities in numerous sectors.  Morrison & Foerster counsel, Bill Sloan, and Brenda Pineau, Vice President of Tetra Tech presented the framework for possible carbon emissions regulations and the protocols and processes involved in establishing a clear emissions inventory. If you would like more information on this topic or would like to contact the presenters of this program, please contact Aarthi Ananth.

Pratt & Whitney Canada Corp. selects Haas TCM to implement CMS
Pratt & Whitney Canada, an operating division of Pratt & Whitney Corporation, and wholly owned subsidiary of United Technologies is proud to announce that the company has chosen Haas TCM to implement total chemical management in its operating sites across Canada. The Program is slated to go live April 16, 2009.  The program includes all Canadian manufacturing sites and provides additional connectivity by linking Haas with Pratt & Whitney Canada’s SAP System. This makes the ordering process fully automated, user friendly, and returns data to a central repository.  The program will allow the company to better manage its cash-flow in regards to managing and increasing inventory turns and reducing scrap and obsolescence. The transition from the current process to Haas TCM will take 3 months as the program ramps up.

New Case Study: Rinchem Cuts Costs, Increases Efficiency for Chip Maker
Rinchem developed a Just-In-Time replenishment plan to supply high purity gases and chemicals to a campus with two semiconductor fabs in Israel.  Rinchem supplied material directly from a Rinchem facility, eliminating the need for the company’s on-site chemical storage and delivery infrastructure. The comprehensive plan reduced costs and improved safety with changes in systems of record, timing of deliveries, and ordering patterns.  Rinchem recently launched a joint venture with Veolia Environmental Services, Chemical Lifecycle Management (CLM), to provide expanded chemical management services to customers, bridging the gap between inbound chemical logistics and outbound chemical waste management.
Read the new case study about Rinchem’s JIT solution.



Green Chemistry: Cradle-to-Cradle System Gains Momentum
Chemical Week - Cover Story
Some chemical companies say it is more profitable and environmentally beneficial to design and produce chemicals that may be readily recovered as raw material once a product’s useful life has ended. Such a system, dubbed cradle-to-cradle (C2C) manufacturing, is gaining traction even beyond industry as some retailers and government officials advocate C2C as the basis for the next industrial revolution. While it may take 12 years for a company to convert to a C2C protocol, firms including AkzoNobel, BASF, Dow Chemical, and DSM are already on that path. C2C promises to deliver industrial competitiveness and product quality while providing quality-focused chemical manufacturers a competitive edge over producers of low-priced, poor-quality chemicals. Read the article.

(Note: You must subscribe to Chemical Week to gain access)

Green efforts continue despite the economy
Purchasing
Despite a challenging economy, business executives in general and procurement leaders in particular are still advocates of Green policies, products and practices. The reason is that many see Green as an avenue to savings and, possibly, new business.

The Corporate Executive Board reports that a recent Sustainability Forum study found that 56% of executives don't foresee the weak economy affecting their efforts to invest in cleaner technologies. Many business executives believe that Green initiatives are good for the bottom line. Procurement and supply chain executives are in the thick of efforts to bring about Green business practices.  As Rick Blasgen, CEO of the Council of Supply Chain Management Professionals, says "Green is hard work, but it's good business." Read the article.

Energy Management Services Market To Reach $40B By 2013
Environmental Leader
In 2008, the energy management services market in North America earned revenues of $20.35 billion, but this could double by 2013 due to favorable government legislation and increasing awareness about the benefits of energy management, according to new analysis from consulting firm Frost & Sullivan.

Energy savings performance contracts (ESPC) have played a pivotal role in increasing the adoption levels of energy efficiency.  As there is no upfront investment from the customer and repayment can be made from the savings generated, the long payback period is expected to stop being a burden on end-users of the service. Read the article.

MRO buyers look to suppliers to help improve efficiency, reduce costs and ultimately improve the bottom line
Purchasing
Trends in improving and managing MRO supply chains are highly consistent with the CMS model.  MRO is an unwieldy spend category so putting tried and true purchasing practices like consolidating the supply base and embarking on efforts to standardize processes and products purchased can help reduce transaction costs, which is a big opportunity for both buyer and supplier.  Suppliers are also helping improve efficiency by placing staff on site to manage inventory, run the storeroom and develop product application ideas that can further reduce costs. Read the article.

EPA Finds Greenhouse Gases Pose Threat to Public Health, Welfare
EPA News Release
After a thorough scientific review ordered in 2007 by the U.S. Supreme Court, the Environmental Protection Agency issued a proposed finding Friday that greenhouse gases contribute to air pollution that may endanger public health or welfare, within the meaning of the Clean Air Act. The proposed finding, which now moves to a public comment period, identified six greenhouse gases that pose a potential threat: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.  Several of these chemicals are emitted in manufacturing processes and could be candidates for regulation. Before taking any steps to reduce greenhouse gases under the Clean Air Act, EPA would conduct an appropriate process and consider stakeholder input.
Read the article.

EPA Proposes National Reporting of GHG Emissions
Environmental Leader
In a far-reaching move, the Environmental Protection Agency is proposing that all major sources of U.S. greenhouse gas emissions be reported into a national database. Across the United States, about 13,000 facilities would be covered. Those facilities account for as much as 90 percent of greenhouse gases emitted nationwide.  Because of the 25,000-metric ton threshold, EPA says most small businesses would be exempt from reporting.

The requirements would apply to:

• fossil fuel and industrial chemicals suppliersmotor vehicle and engine manufacturers
• direct emitters of greenhouse gases who emit 25,000 metric tons or more per year. Such sources of emissions might include cement production, iron and steel production and electricity generation.

Founding Member
Haas TCM

Members
Chemical Lifecycle
Management
Chemico Systems, Inc.
General Motors Corporation
Houghton International, Inc.
Illinois Sustainable
Technology Center
Ithaca College
Lockheed Martin Corporation
Morrison & Foerster LLP
PPG Industries
Quaker Chemical Corp.
Raytheon Company
Rockwell Collins, Inc.
SAIC
Seagate Technology LLC
Tetra Tech
United Technologies
Corporation
Yorkshire Chemical Focus


2009 Event Highlights
CMS Forum members and the Chemical Strategies Partnership speak at or participate in many conferences each year. A list of 2009 conferences of note include:

13th Annual CMS Conference
November 3-5, 2009
Dallas, TX

Chemical Purchasing Summit
September 17-18, 2009
Boston, MA

Campus Safety, Health, and Environmental Management Association Conference
July 12–15, 2009
New Orleans, LA

13th Annual Green Chemistry & Engineering Conference
June 23-25, 2009
College Park, MD

U.S. EPA Sustainable Futures Workshop
June 17-19, 2009
East Hanover, NJ

Second session of the International Conference on Chemicals Management (ICCM2)
May 11-15, 2009
Geneva, Switzerland

NDIA Energy, Environment, & Sustainability Symposium
May 4-7, 2009
Denver, CO

2009 Green Chemistry & Commerce Council InnovatorsRoundtable
May 4-6, 2009
Broomfield, CO

UNIDO Cleaner Production Programme - Workshop on Chemical Leasing
April 20-24, 2009
Belgrade, Serbia

Aviation Week MRO Conference
April 21-23, 2009
Dallas, TX

Cost Savings and Performance through EHS Management Information Systems
April 2-3, 2009
Tampa, FL

CMS Symposium
March 27, 2009
Seoul, Korea

CMS Workshop Expert Training Program
March 24-26, 2009
Seoul, Korea

Chemical Week's 14th Annual Transportation, Distribution, and Security Conference for the Chemical Industry
March 16-17, 2009
New Orleans, LA

In-Depth CMS Training Program
February 24-26
Boston, MA

CMS Round Table Meeting
February 10, 2009
Huddersfield, UK

IPC Environmental Symposium: "It's Not Easy Being Green: Compliance with Legislation and Customer Requirements"
February 4-5, 2009
San Jose, CA

LogiCon 2009
January 26-28, 2009
Atlanta, GA

REACH USA 2009
January 20-22, 2009
Houston, TX