New paths to competitive advantage

Cooperation in the product chain

Suppliers increasingly experience being presented with a series of environmental requirements that they must comply with if they want to continue supplying a major customer. There are also several examples where enterprises in a product chain voluntarily unite forces to make the end product more environmentally sound, however.

The building enterprise Skanska Denmark participates in several product chain cooperations. And in the opinion of the enterprise, this is a constructive move.

Trust fosters innovation

Together with BPB Gyproc and Danogips, which produce plasterboard, Skanska Denmark has enhanced the recycling of plasterboard waste.

"At Skanska we have set up special containers for plasterboard waste and have entered into transport agreements so that the transport costs do not exceed the savings from recycling instead of landfilling," says René Amini, Project Manager for Business Development in Skanska Denmark. He calls the cooperation a "logical agreement". Slightly more is recycled, and a little money is saved. Moreover, when all the parties in the chain have an interest in the cooperation, it is easier to implement constructive and often simple solutions."

Skanska Denmark also participates in a major product chain where the enterprise cooperates with other building contractors and with suppliers.The cooperation aims to give an overview of the chemical products used in the building industry. At the same time, it forms the basis for drawing up and implementing chemical policies in the building contractors. A visible result of the cooperation is a chemical database that provides building contractors with rapid and easy access to knowledge about the chemicals and hence better possibilities for ensuring environmentally sound building.

"A good product chain cooperation is based on trust and tolerance. If the right chemistry exists between the parties, the possibilities for innovation are also good," says René Amini.

Differentiate from the competition

"We use the chemical database to differentiate from the competition. Skanska Denmark now enforces a chemical policy whereby we subdivide the chemicals into three groups: The permitted, the accepted and the banned. In that way we are directly involved in assessing the chemicals and deciding which chemicals we want to use, and which ones we eventually want to stop using," says René Amini.

Skanska Denmark has experienced that their environmental work creates confidence in several of the supervisory authorities. The enterprise, which is ISO 14001 certified, uses the environmental work in marketing.

To the question of which arguments make the biggest impression on customers, René Amini answers: "They want to know what they get for their money when they choose environmentally sound solutions. For example, we have to be able to show the customers the impact on the total economy of choosing less harsh chemicals. This saves money in the operation phase, and one can avoid indoor climate problems," says René Amini and continues:

"Polyurethane foam is used to fix and seal windows.The good thing about it is that it is rapid and easy to use. However, there is a real risk that it will eventually absorb water and lead to mould fungus and other fungal attacks. Apart from the financial cost of replacing the windows there is the more serious problem that the fungal spores can result in a poor indoor climate and in the worst case, even cause allergy. Fixing the windows in place more traditionally with mortar will therefore be preferable, even though this is typically slightly more expensive.

In the construction phase, the solution with the lowest material costs is not necessarily the best overall solution. Use of the materials and disposal of possible waste are important items in the cost calculations.

Green accounts

From 2003, about 1,000 enterprises in Denmark prepare green accounts each year. Around 15% do so voluntarily, while the other enterprises are required to prepare green accounts.

Read more at www.mst.dk


"A harsh product listed in a call for tenders can often just as well be substituted with another product with the same technical properties. Even though the material costs for the alternative product are higher, it often transpires that the total costs of the purchase and use are lower than for the prescribed product. One often forgets that the costs for additional safety equipment, possible limitations on the time workers may work with the product, and a higher waste disposal levy can tip the calculation in favour of the less harsh product. The argumentation is primarily related to the working environment, but in our experience, consideration for the working environment often also has positive environmental effects," points out René Amini.

Skanska Denmark A/S, Ballerup, 2,000 employees.