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Summer 2005























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





Notes from the Forum
A Message from the CMS Forum Director
Welcome to the Summer 2005 edition of the CMS Insider. This issue’s Viewpoints from the Field highlights the “Green Suppliers Network”, a program sponsored by the US Environmental Protection Agency that involves many of our CMS Forum members. CMS is a strategy that helps develop a greener supply chain and the Green Suppliers Network provides an excellent venue for introducing customers to the advantages of CMS.

We are also pleased to announce the development of the 2005 CMS Industry Update. This market research study will provide timely insight into CMS market growth and trends and will serve as a supplement to the 2004 CMS Industry Report. Primary results of the Industry Update will be available at the 9th Annual CMS Workshop, October 19-21, in San Francisco. On-line registration is now open for the workshop and we invite you to register today.

Read below for more information on trends in the marketplace, recently awarded contracts, and new benefits for CMS Forum members. We hope to see you at the annual Workshop in October!

Warmest Regards,

Jill Kauffman Johnson
CMS Forum Director


Viewpoints from the Field
The Green Suppliers Network
By Kristin Pierre and Heidi Karp, U.S. Environmental Agency, Green Suppliers Network
Operating efficiently and eliminating waste makes for good business. This explains why many large manufacturers have invested resources to integrate waste reduction techniques, such as lean and clean manufacturing, into their operations. Ideally, these large manufacturers could impart this knowledge to their enormous supply chains. Yet, most large manufacturers do not have the time and money to help all of their smaller suppliers remain lean and green. Furthermore, most small and medium-sized suppliers do not have the resources to devote to environmental and operational improvements. Read more ...


CMS Forum News
Register for the 2005 CMS Workshop – October 19-21 in San Francisco
Registration is now open for the 9th Annual Chemical Management Services (CMS) Workshop, featuring case studies and practical dialogue at the cutting edge of chemical management. CMS is implemented in sectors as diverse as aerospace, air transport, electronics, auto manufacturing, steel, food and beverage, utilities, and universities. The workshop will feature companies implementing CMS programs describing their efforts, including: Seagate Technology, United Technologies Corp., FirstEnergy Corp., General Motors, Cummins, Inc., and DaimlerChrysler. Learn from seasoned practitioners about how to start a CMS program, solutions to common challenges in implementation, and emerging trends. Workshop agenda and registration information is available at www.chemicalstrategies.org.

CMS Workshops Make an Impact
Recently Chemical Strategies Partnership examined the statistics from eight years of annual workshop attendance. The data revealed that over the past eight years, almost half of all attendees were customers or potential customers. Other attendees were CMS providers, academics, government, and non-profit representatives. A total of 61 different customer companies have attended over the past eight years and 75% of those companies were new to CMS. Of these new customers, approximately 30% have launched a CMS program and 10% are in the process of starting a program. The primary motivations for people to learn more about CMS and attend a workshop are reducing costs and waste, improving efficiency, and improving EH&S efforts. Participants have highly valued the case study format and opportunity for more in-depth discussion in the breakout sessions. On average, participants have been more likely or as likely to promote CMS in their companies after attending a CMS workshop.

New! Member Profiles on the Website
Looking for a chemical management services provider? Visit www.cmsforum.org/members_about.html to view quick snapshots of the range of services CMS Forum members can provide for companies seeking to implement a CMS program. (Profiles on the website are provided by the companies themselves and do not indicate endorsement on the part of Chemical Strategies Partnership or the CMS Forum.) If you are a member provider and would like to submit your profile, please send it to josephine@chemicalstrategies.org.

CMS Industry Update
To provide CMS Forum Members, potential customers, and investors with timely insight into CMS market growth and trends, we are initiating an annual "Industry Update". These abbreviated annual updates will supplement the in-depth Industry Reports we prepare every four years (2000, 2004, 2008, etc.). We are asking CMS customers and providers a limited set of questions designed for easy response and maximum insight into current market developments. Survey findings will be announced at our 9th Annual CMS Workshop and provided on the CMS Forum website following the workshop. Please contact Jeff Cole at jeff@chemicalstrategies.org if you are interested in participating in the Industry Update.

Marketplace Updates Available to CMS Forum Members
To foster innovation and build continuous improvement opportunities among Tier I and Tier II providers, CMS Forum is launching the CMS Marketplace Update. The email Update will provide short descriptions of offerings from Tier II chemical suppliers, software vendors, and other product/service providers who have contacted CMS Forum in the past quarter. If you would like to submit a Tier II profile, contact Jeff Cole at jeff@chemicalstrategies.org or 415-421-3405 x32 to participate or to get more information.

CMS Recognized as a Successful Pollution Prevention Strategy
Increasingly, CMS is recognized by pollution prevention advocates and strategic supply experts as a way to reduce costs and improve environmental performance. A sample of organizations that cite CMS is below. If you know of any other organizations or associations mentioning CMS, please contact lauren@chemicalstrategies.org.

US Environmental Protection Agency Waste Minimization Program:
www.epa.gov/epaoswer/hazwaste/minimize/cms.htm

United Nations Environment Program Division of Technology, Industry and Economics: www.Uneptie.org/pc/pc/tools/supplychain.htm

Toxics Use Reduction Institute (TURI) Pollution Prevention Gems: www.p2gems.org/index.php?action=browse_subcategory&id=137

Business for Social Responsibility: www.bsr.org/CSRResources/IssueBriefDetail.cfm?DocumentID=49622

Business and Sustainable Development: A Global Guide: www.bsdglobal.com/sector_resources.asp

Pacific Northwest Pollution Prevention Resource Center: www.pprc.org/pubs/grnchain/outsource.cfm



Trendwatch
Symposium on Developing a Chemicals Policy for California at UC Berkeley Oct. 18-19
The purpose of the day-and-a-half working session is to discuss bringing safer chemicals policy to the US. The Office of the President at UC Berkeley is sponsoring the symposium with three UC departments: the Center for Occupational and Environmental Health, the Institute for International Studies, and the Haas Business School, with participation by the European Commission (EC) delegation to the US. This symposium will build on the series of convenings over the past year across the country that explored REACH (Registration, Evaluation and Authorisation of Chemicals) and the opportunities this EU legislation will open for the investment and growth of green chemistry technology in the US. (Green chemistry is the design and production of inherently safer chemicals and processes.) The symposium will include important policy-makers, business leaders, award-winning scientists, academics, and engaged journalists to examine the feasibility of an integrated chemicals policy for California and New York, on a practical level. For registration and more information, please contact Jill Kauffman Johnson at jill@chemicalstrategies.org.

Cefic President Eyes Chemical Knowledge Database
The global chemical industry should work as “one responsible industry” to create a single knowledge base for chemical data related to human health and the environment. Read more...

What's Your Strategy for Outsourcing?
Most companies view outsourcing from a cost-reduction perspective and a source for non-core operations rather than a way to grow revenue. This view is consistent with results of a recent study that found companies see an average cost savings of 13-15% from outsourcing activities. The recently released study is "Outsourcing Strategically for Sustainable Competitive Advantage," by CAPS: Center for Strategic Supply Research, an organization affiliated with the Institute for Supply Management and the W. P. Carey School of Business at Arizona State University and A.T. Kearney that surveyed 165 companies from 24 industries. The study is available on the CAPS website. Learn more...

Electronic Design Magazine Introduces Resource Center for New International Environmental Laws Pertaining to the Electronics Industry
The 25 countries of the European Union, as well as Japan and China, are about to significantly restrict the use of environmentally hazardous materials in electronic components and systems.

Under the EU's directive, called Restrictions on Hazardous Substances (RoHS), hundreds of thousands of products currently produced and marketed by electronics companies could become obsolete, forcing semiconductor and other electronics manufacturers to re-design some products to remove certain toxic materials. Beginning in July 2006, companies not in compliance would be unable to sell their products to EU member countries. This will have a huge impact on the industry - all chip and equipment manufacturers and distributors doing business internationally must comply with these new directives. Learn more ...


Member Focus
PPG-Helios Signs Contract with Russian Automaker; Lands Eastern Europe Business for Total Service Solutions
PPG-Helios, a joint-venture between PPG Industries and Helios, recently signed a five-year contract with AutoVAZ to provide the vehicle manufacturer with chemical management for its new paint shop in Togliatti, Russia. The chemical management contract comes as an addition to the process management services that PPG-Helios has been providing to AutoVAZ since February of this year and leverages the global strengths of Total Service Solutions (TSS) to gain additional business in Eastern Europe.

PPG-Helios will utilize a chemical management program from TSS to run the automotive coatings process in all key areas of the paint shop for the new Lada Kalina line-up of compact cars, including pretreatment, electropaint, paint mix room, and spray booths. In addition, PPG-Helios will be providing paint and chemical expertise to help improve quality and reduce costs.

Sikorsky’s Chemical Management Program Wins United Technologies EH&S Award
Sikorsky’s Chemical Management Team is the recipient of a United Technologies award in environmental innovation for its work to reduce the cost of using chemicals. Sikorsky is a world leader in the design and manufacture of advanced helicopters for commercial, industrial, and military uses. The Sikorsky team was recognized for developing improvements in reporting and tracking, reducing waste and liability, and improving the general process flow of chemical handling. Eight awards were presented to UTC teams whose commitment to EH&S initiatives made a major positive impact for the corporation last year. Congratulations to Sikorsky Chemical Management team members: Robert Melnick, Sue Carey, and Steve Kopchick; UTC employee Scott Little; and Haas Corp. employee Lee Sullivan. (HaasTCM is Sikorsky’s chemical service provider.)

Castrol Signs Total Fluid Management Contract at Ford Motor Company
Castrol Industrial North America Inc. is pleased to announce two new Total Fluid Management contracts at Ford Motor Company’s Livonia, Michigan transmission plant and the Cleveland, Ohio Engine Plant 1 (CEP 1). Castrol was awarded the three-year contracts from Ford in May 2005. The Ford Livonia facility manufactures approximately 1,000,000 transmissions a year for Ford, Lincoln and Mercury vehicles. The Ford Cleveland facility has the capacity to produce approximately 325,000 engines a year for Ford and Mercury vehicles. Castrol’s account at CEP I completes a site-wide Castrol fluid management program which covers all the Ford Cleveland Engine Plants (CEP 1, CEP 2, and CCP).





members
Founding Member
Haas TCM

Members
AVChem
Castrol Industrial North
America
Chemico Systems
DaimlerChrysler Corporation
Dana Corporation
Delta Air Lines
Dolphin Software
Fisher Scientific
General Motors Corporation
Henkel Chemical Management
Houghton International
Hyundai Motor Company
Illinois State University
Illinois Waste Management
and Research Center
PPG Industries
Quaker Chemical Corporation
Raytheon Company
Rockwell Collins
Seagate Technology
Shell Services USA
Society of Tribologists and
Lubrication Engineers
Solution Recovery
Services
United Technologies Corp.


Upcoming Events
2005 CMS Workshop
9th Annual Chemical Management Services Workshop: The Expansion and Evolution of the CMS Model
October 19-21, 2005
San Francisco, CA


2005 Event Highlights
CMS Forum members and the Chemical Strategies Partnership speak at or participate in many conferences each year. A list of these for 2005 include:

International Forum on the Non-core Business Outsourcing for Manufacturing Enterprises
September 3-4, 2005
Shanghai, China

SAE Aerospace Manufacturing Conference
October 3-6, 2005
Dallas, Texas

Symposium on Developing a Chemicals Policy for California
October 18-19, 2005
Berkeley, California









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