Driverite Firestone - Supply Chain Management

Student name: Cristina Iancu

Student number: 1117

Word Count: 2,174

Submission date: 20/01/2016

Module Title: Introduction to Supply Chain

Module Code: HC009

Assignment Topic: Sustainable supply chains

Pages: 8

Table of Content

Overview………………………………..Page 1

Part (a) ………………………………… Page 2-4

Part (b)…………………………………. Page 4-5

Part (c)…………………………………. Page 6-7

Conclusion ……………………….…….Page 8

Bibliography…………………………… Page 8

The company I work for, Driverite Firestone is specialized in manufacturing airbags and designing air suspension for light commercial vehicles, motorhomes and ambulances. With over 20 years of experience in the automotive industry in Europe it has developed into a leading supplier of air suspension (Drive Right Holdings Ltd 2013). As part of our supply chain we put emphasis on acquiring goods and services in a way that gives preferences to suppliers that generate positive social and environmental outcomes. Our OE customers expect from us to integrate sustainability considerations into the products we supply. Driverite Firestone purchasing function is carefully looking at what products are made of, where they have come from, who has made them, how they will be ultimately disposed, it is looking into whether the purchase needs to be made at all. Our air suspension products are based on metal bracketry, air fittings, electronic control units, electronic harnesses, air compressors and Firestone branded airbags. Being responsible towards the environment is one of a major consideration of the organisation when devising strategies.

 (a) Materials        

I identified several topics related to the sustainability issue in sourcing materials as follows:

1. Climate change presents a sensitive issue worldwide ; Driverite Firestone products and technologies have a role to play in mitigating its effects by managing the potential negative impacts arising from an increasingly carbon constrained world. The company is paying close attention to the impact of CO2 emissions and its efforts to reduce them go beyond airbags manufacturing. In addition to reducing its manufacturing footprint, Firestone has committed to reducing CO2 emissions throughout the lifecycle of an airbag by closely looking into the following fields:

• Raw materials - from source to production, they strive to lower their supply chain impacts, by finding numerous ways to reduce fuel use and emissions when transporting materials.
• Production:  constantly seeking new technologies, best practices and systems efficiencies to increase production and minimize waste footprint.
• Use : the products are designed to minimize customers’ energy use , thereby  also mitigating their carbon emissions .This helps reduce their overall environmental footprint and  provides operational cost saving.
• End of Life:  Driverite Firestone airbags can and are recycled into many useful products from foam dust used in absorbents for spill response to shredded extremely durable synthetic rubber roofing membrane used as playground coverings.

1. Environmental protection - many of Diverite Firestone products and technologies have an environmentally beneficial effect. Operating our processes with care and respect for the environment is a focus. Failure to do so can have damaging effects on the planet and society and negatively impact our reputation and our business.

1. Availability of resources - continued economic development will place an ever increasing strain on the world’s resources. Over time, the raw materials we use today may become less available and more costly. Our challenges are to carefully select those with the lowest sustainability footprint, use them as efficiently as possible and maximise the amounts we recycle.

1. Waste - as populations and industry continue to grow, so will the amount of waste we collectively generate. It places a burden on the planet, can have a negative impact on habitats and potentially spoil areas of natural beauty that we currently enjoy. It is in our interest to manage the waste we generate as a business. Addressing this issue delivers financial savings, more efficient processes and a better environment for us all. Minimizing or avoiding the creation of pollutants and wastes can be more effective in protecting the environment than treating or cleaning them up after they have been created.

1. Environmental directives - a large number of EU directives have been issued relating to quality, water, waste, chemicals, packaging, packaging waste, etc. This legislation represents the minimum environmental demand and is legally binding for all EU member states and it relates to: integrated pollution control, air pollution control, waste disposal and recycling and control of dangerous substances and nuisances.  (Lyons & Farrington 2007).  Dirverite Firestone Purchasing department team needs to have a general knowledge of the EU Environmental directives when acquiring goods.

1. Environmental Purchasing policies and management - the procurement of materials is a powerful instrument of environmental policy. Careful purchasing gives full weight to environmental considerations in the assortment of products and can help improve environmental standards by reducing pollution and waste. In Driverite Firestone potential main new suppliers are considered only if they have ISO: 14001.

1. Shareholder value and profitability - materials have to deliver shareholder value; profitability and sustainability are intricately linked and these days competitiveness is so intense that business will only survive they can carry on delivering superior value to its shareholders. The main material used in the Firestone airbags is natural rubber, guayule, or synthetic rubber. For the past century, the company sought alternatives to the natural rubber grown on Southeast Asian rubber plantations. Dependence on a single region for the critical raw material has made the supply chains vulnerable to blight, infestation, bad weather, political instability. In 2011, Firestone set out on a new journey launching a research initiative aimed at diversifying the world’s natural rubber supply. Their team of experts worked together to pioneer the commercialization of tire grade natural rubber derived from guayule, a desert shrub. The guayule sustainable research project moved the organisation closer to its long-term environmental vision to manufacture products from raw materials that are fully renewable and sustainable as the environmental mission of Firestone is to help ensure a healthy environment for current and future generations.

(b) Toxic discharge                                                                  

One of the main components of the Driverite Firestone electronic air suspension is a Non-Lowering ECAS kit that uses a height control valve mounted between the chassis and suspension, specially designed to keep the air springs at a controlled height.

This equipment contained lead, material hazardous to humans.