Identifying an attractive opportunity is only the beginning
of the value realization process. Forging New Links includes a
step-by-step methodology that provides guidance to EHS and
other functional groups in their efforts at supply chain value
creation. It consists of four logical steps for managing value
creation opportunities. The methodology resembles the
Plan-Do-Check-Advance cycle, in that it provides a feedback loop
for continuous improvement.
Step 1. Identify supply chain
opportunities. This step provides several methods for
identifying company-specific value creation opportunities
related to EHS in the supply chain.
Step 2. Prioritize EHS value
contributions. This step prioritizes opportunities
based on their feasibility and attractiveness, as well as the
relevant competencies of the organization.
Step 3. Develop business
justification. This step develops a
business case for
selected high-priority opportunities, and may include dialogue
with external stakeholder groups.
Step 4. Implement, measure, and
iterate. This step uses measurement tools to quantify
the business value achieved by the selected initiatives, and
to support continuous improvement.
It is assumed that the process of identifying, screening,
and implementing opportunities will be a collaborative effort
involving a cross-functional team. As the team progresses from
Steps 1 through 4, its membership typically will grow and
change. In addition to personnel from EHS, logistics, and
other internal functions, the composition of the team could
include supplier and customer representatives as well as other
More about collaborative relationships.