Use of EPIs in supply chain communication

Working procedure

Printable version of strategy

The different steps when using this strategy in supply chain communication can be summarized as follows:

1. Understand and agree on a list of commonly defined Environmental Performance Indicators (EPIs). For more information on the indicator definition process see the strategy Design for Environment. See example: The REPID set of indicators 2003
    
2. Understand and agree on a common material list including material property data needed for the calculations of the EPIs. For more information on how to compile a common material list and acquire material data see the strategy Design for Environment.
    
3. The customer sets target values for each selected indicator. The target values are based on the policy of the company, regulations, customer demands etc.
    
4. The selling company or organization strives to comply with the target values during their design work. The fulfillment of the requirements is verified by calculating the environmental performance in terms of the agreed EPIs. For more information on how this is performed see the strategy Design for Environment.

To make the communicated information useful it is important that the EPIs are interpreted in the same way by senders and receivers. Consequently, the EPIs must have the same meaning and value no matter who has entered the information or which software that has been used. Work according to this Design for Environment (DfE)-methodology does hence require:

• Acceptance of the agreed indicator list (or a subset)

• Compliance with the common material list

• Common calculation routines to measure the environmental performance

For this strategy, a DfE-methodology which aggregates the declared material data according to defined algorithms arriving at calculated values for the EPIs is needed. A transparent data communication format that supports the methodology is also central as well as a tool (such as a spreadsheet) where the customer can insert their environmental requirements and targets in terms of the defined EPIs.
 

Experiences