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Winter 2002























A publication of the CMS Forum; a project of the Chemical Strategies Partnership





Notes from the Forum
A message from the CMS Forum Director

This newsletter wraps up our first year of producing the quarterly CMS Insider. We have received good feedback about the newsletter and continue to solicit new perspectives on the CMS field as it grows – and from our vantage point, the CMS field is certainly growing. The CSP/CMS Forum 6th Annual Workshop in Chicago on October 24th was our largest gathering ever. It was also the most diverse. With representatives from 48 companies, federal and state government, investment firms and academia, the workshop was lively and informative. A link to the summary of the workshop is included below.

Participants at the workshop had many good suggestions for CMS Forum activities in 2003. There was interest in creating active committees to increase member networking, industry specific gatherings, and benchmarking activities. We will also continue to conduct outreach and education about the CMS model. We will be launching our efforts in Europe with our participation in the “Chemical Management Services Workshop: New Markets for Chemical Companies” in London on February 25. The CMS Forum is helping to organize the workshop with two UK-based organizations: the Green Alliance and Yorkshire Forward.

Thank you for your support this year and your continued interest in CMS. From all of us here at the CMS Forum, we wish you a happy holiday season and peace in the new year.

Warmest Regards,
Jill Kauffman Johnson
CMS Forum Director


Viewpoints from the Field
Strategies for Outsourcing Chemical and Wastewater Management
by Anders E. Stenstedt, Esq., Morrison & Foerster LLP

Successfully outsourcing chemical and wastewater management services (CWMS) involves balancing three key elements. Each of these elements must be addressed in contracts carefully negotiated among the manufacturing entity and service providers. These elements are: (1) transforming the chemical supply chain; (2) outsourcing, to the extent possible, water, wastewater, solid waste and recycling systems; and (3) aligning motivations of manufacturer and service provider to reduce costs and consumption. The contractual relationships governing CWMS must provide for each of these three components if such outsourcing is to achieve the goals of reduced costs and improved performance. Read Full Article...

Reflections on Supply Chain Management
by Jill Kauffman Johnson, Executive Director, Chemical Strategies Partnership

In early November, CSP was invited to present at the Institute for Supply Management (ISM) conference, “Value x4, the Essential Supply Management Conference.” In addition to being a great speaking venue, the conference also gave me the opportunity to hear first hand what top purchasing professionals were saying about their current purchasing strategies. The good news is that many of the purchasing executives speaking at the conference described their efforts towards “supply chain management” and away from pounding suppliers for price reductions. Read Full Article...



CMS Forum News
CSP Collaborates with Green Alliance and Yorkshire Forward to Host a CMS Workshop in Europe in February 2003
CSP, Green Alliance, and Yorkshire Forward are pleased to invite you to Chemical Management Services Workshop: Service Innovation in the Chemical Supply Chain, a workshop to introduce the CMS model to companies in the UK and Europe. Manufacturing companies and CMS providers, including General Motors, OPEL, United Technologies Corporation, Henkel Chemical Management, Haas TCM, Shell Services USA, and others will provide case studies of their current CMS programs. This workshop will provide your company with the tools to optimize chemical management, ultimately reducing costs, eliminating inventory, optimizing chemical use, and reducing liability. More

Haas Corporation and Radian TCM Merge to Form Haas TCM
Two leaders in the young and rapidly growing chemical management services (CMS) industry have merged, creating the world's largest independent and most diverse CMS company. The Total Chemical Management business of Radian International LLC was acquired on October 1, 2002 by Haas Corporation and merged to form Haas TCM. More

Dr. Tom Bierma Elected to the CMS Forum Executive Committee

Dr. Tom Bierma, Professor of Environmental Health at Illinois State University, was elected to serve on the CMS Forum Executive Committee. With colleague Frank Waterstraat, Dr. Bierma's research on chemical management services has lead to numerous case studies and publications, as well as a book entitled "Chemical Management" published by Wiley & Sons in 2000. He holds an MBA and Ph.D. from the University of Illinois. The other four Executive Committee Members include representatives from Haas TCM, Ashland Specialty Chemical Company, General Motors, and CSP. For more information, contact Jill Kauffman Johnson.

General Motors and DaimlerChrysler Kick-off First-ever CMS Benchmarking Study
The CMS Forum established an auto benchmarking workgroup in October to develop the outline for an industry benchmarking study. General Motors (GM) and DaimlerChrysler (Chrysler) agreed to benchmark their chemical management programs. The study will compare chemical management at facilities producing similar products. The workgroup is comprised of GM, Chrysler, Henkel Chemical Management, Haas TCM, Illinois State University, and CSP. If successful, the CMS Forum will consider establishing other industry benchmarking workgroups. A summary of the auto benchmarking results will be made available to CMS Forum members. For more information, contact Michelle Sargent.

CSP Featured in the November/December Edition of Green@work
Green@work published an article about CSP and the CMS model in its November/December 2002 edition. The article is titled: "A new business model can point chemical-intensive companies in the right direction," and features case studies from Delta, Ford, Raytheon, and GM. More



Trendwatch
Austria Promotes Chemical Leasing Model
Chemical companies should aim to sell services to their industrial customers rather than substances, Austria's environment ministry said [on November 11]. The ministry reckons that such chemical leasing can cut both costs and pollution and is pledging to promote the model at EU level. The initiative was drawn up by the [Austrian] Environment Ministry in collaboration with 15 chemical firms, including Dow Europe, Ciba Chemical, Henkel and Pero. Follow-up: Austrian Environment Ministry, tel: +43 1 711 000, and press release (in German).
More
- Environment Daily

PPG Receives Pennsylvania Governor's Award for Environmental Excellence
PPG Industries has received the Pennsylvania Governor's Award for Environmental Excellence for "outstanding commitment to environmental stewardship" for its new line of eco-friendly architectural paints. Pure Performance is the first premium paint to earn the independent, environmentally friendly "Green Seal Class A" certification, according to David C. Cannon Jr., PPG's Vice President, Environment, Health and Safety. More
- GreenBiz.com

Green Holiday Guide Gives Recycled Bottles and Cans a Second Chance this Holiday Season
In an effort to raise awareness for recycling and provide the nation with an easy way to help the environment this holiday season, the California Department of Conservation has released the 2002 Green Holiday Guide. This one-of-a-kind, nationally-circulated holiday guide contains easy-to-find environmentally conscious gifts. From kayaks to ski jackets, to glassware and home décor, all of the gifts in the guide are made from recycled materials. More (pdf format)
- California Department of Conservation


Member Focus
CSP's 6th Annual Workshop in Chicago Attracts 83 Participants
Thank you to all the speakers and participants who helped to make CSP's 6th Annual Workshop: Lessons, Innovations, and Future Directions for CMS, its largest to date. A total of 83 people representing 48 different companies were on hand for candid discussions about chemical management services (CMS). The day was highlighted by case study presentations from General Motors and Haas TCM, Harley-Davidson and Henkel Chemical Management, Delta Air Lines and Interface LLC, and Philips Electronics and Ashland Specialty Chemical Company. Three afternoon breakout sessions included presentations and discussions on selling and re-selling the CMS model internally, information technology, and applying the CMS model to small and medium-sized enterprises. The workshop was sponsored by the Chemical Strategies Partnership, CMS Forum, Illinois Waste Management and Research Center, and the Illinois Department of Commerce and Community Affairs. More


CMS Forum has Another Banner Year in 2002
The CMS Forum has achieved many of the goals set in its third year of operation. These accomplishments include: recruited nine new members, convened three successful CMS workshops, introduced CSP and the CMS business model to a wide variety of interested stakeholders in both Europe and Asia, and conducted extensive outreach through various publications, conferences, and targeted presentations. More (pdf format)





members
Founding Members
Ashland Specialty Chemical
Company
Haas TCM

Members
Air Products and Chemicals
AVChem
Chemical Strategies Partnership
DaimlerChrysler Corporation
Delta Air Lines
Dow Corning Corporation
General Motors Corporation
Henkel Chemical Management
Illinois State University
Illinois Waste Management
and Research Center
Interface LLC
Raytheon Company
Rockwood Electronic Materials
Seagate Technology
Shell Services USA


Upcoming Events
Upcoming CSP Workshop
Chemical Management Services Workshop: New Markets for Chemical Companies
February 25, 2003
London, UK

CSP workshops in 2002
Chemical Management Services: Update from the Field
March 12, 2002
Sunnyvale, CA

Greening and Optimizing the Chemical Supply Chain in Asia
July 30, 2002
Singapore

6th Annual CSP Workshop: Lessons, Innovations, and Future Directions for CMS
October 24, 2002
Rosemont, IL


2002 Event Highlights
CMS Forum members and the Chemical Strategies Partnership speak at or participate in many conferences each year. A list of these for 2002 include:

RCRA National Meeting
January 12-15, 2002
Washington, D.C.

Globe 2002: International Trade Fair and Conference on Business and the Environment
March 13-15, 2002
Vancouver, British Columbia

Semiconductor Environmental Safety & Health Association (SESHA): 24th Annual Symposium and Exhibition
April 2-6, 2002
Palm Springs, CA

National Pollution Prevention Roundtable: Blazing the Trail to Sustainability
April 2-5, 2002
Portland, OR

Confidence in Chemicals and the Toxic Debate
April 16-17, 2002
London, UK

Surface Technology Association
April 18, 2002
Fremont, CA

Multi-State Working Group on Environmental Management Systems
June 3-4, 2002
Orlando, FL

Gordon Research Conference on Industrial Ecology
June 9-14, 2002
New Hampshire

Entech: Environmental Mgmt. and Technology Conference and Exhibition
June 11-13, 2002
Atlantic City, NJ

9th Regular Session of the Council of the Commission for Environmental Cooperation (CEC)
June 17-19, 2002
Ottawa, Canada

Semicon West
July 17-24, 2002
San Francisco and San Jose, CA

Independent Lubricant Manufacturers Association Annual Meeting
September 28-October 1, 2002
Colorado Springs, CO

EFCOG/DOE Chemical Management 2002 Workshop
November 5-7, 2002
Washington, D.C.

Institute for Supply Management (ISM); Value X4: The Essential Supply Management Conference
November 11-13, 2002
Scottsdale, AZ

2003 Event Highlights

The 4th Asia Pacific Roundtable for Cleaner Production
January 20-22, 2003
Chiang Mai, Thailand

TAPPI 2003 International Environmental Conference & Exhibit
May 4-7, 2003
Portland, OR




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