SUBMITTED BY : PAWAN KUMAR VERMAROLL # 28NMP70

CHEMICAL MANAGEMENT AT DELTA AIRLINES

Q-1: What strategic risks and opportunities does Delta face in entering into this relationship with Interface-LLC?

RISK

•Huge Risk as the only intermediate supplier. No back up plan

•No prior experience to Interface-LLC in the field

•Interface-LLC is ready to approach other airlines. He may not give priority to Delta in long run

•Loss of confidential supplier data as Delta agreed to provide all supplier negotiated contracts

•Loss of contracts with long term strategic suppliers/partners

•Resistance within Delta may impact operation performance

•Interface-LLC may over control the chemical supplies and may sudden increase the prices.

•Long period of 6 months for implementation.

OPPORTUNITY

•Reduction in TCO (Total cost of ownership)

•Freeing the space of 30,000 square feet (Cost Saving of $ .9 m = 30000*30/1000000)

•Simplifying the supplier base and minimize intermediaries

•Faster Delivery period (Routine supplies – 3 Hours and Expedited supplies – 2 Hours)

•Streamlining MSDS management, Bar coding, tracking Chemicals , Development of approved chemical list, Negotiation with major chemical manufacturers

•Sourcing safety products

•Reduction in wastage

•Joint cost saving opportunities with Interface-LLC , Innovative ways to save money

Q-1 (cont.) : What risks and opportunities does Interface-LLC face?RISK

•Shelf life of the Chemicals. Beyond shelf life the chemicals will be waste and incurred the cost.

•Very short delivery period (Routine supplies – 3 Hours and Expedited supplies – 2 Hours).

•New start up – Regulatory requirements, clean Air act are the real challenge.

•Inventory management

•No prior Experience

OPPORTUNITY

•Chemical Management program for Interface-LLC is the new tool for business startup

•Opportunity to approach to other Airlines

•Joint cost saving opportunities with Delta , Innovative ways to save money

•Interface-LLC seek opportunity in negotiating several other chemical management contracts

•Interface-LLC looking for opportunities globally

•Economics of scale for huge demanding chemicals.

• Opportunity for making strategic contracts/ partnership with manufacturer directly.

Delta

•No need to go for Regularity requirements as Delta will not be holding large quantities of Chemicals.

•Saving of $ 1 million against usages, Air emissions and disposal amounts.

•Reduction in the cost of process for maintaining the hazardous chemicals.

•Saving against SKUs (stock keeping units)

•As the delivery period is short, they not need to store chemicals in huge quantity so no reporting required to EPA.

•May certify as green field company following Clean Air Act. No huge chemical emissions.

•No hazard chemical wastage

What product and process oriented environmental strategies are available to Interface-LLC as they continue to expand their service offerings? To Delta?

Interface-LLC

•Need for Regularity requirements as Interface-LLC will be holding large quantities of Chemicals.

•Economics of scale in process for maintaining the hazardous chemicals.

•As Interface-LLC is procuring and store chemicals in huge quantity so there is a need for reporting to EPA.

•Need to track and report on chemical emissions as per Clean Air Act.

•No hazard chemical wastage due

•MSDS to be maintained for each chemical procured by Interface-LLC

If you were in-charge of chemical management program at (a) Delta and (b) Interface LLC, what changes would you make to further improve environmental performance.

•Delta• Educate and instruct for strict compliance for regulatory requirements and Clean Air Act against emissions of Chemicals .

•Impose the clause for penalty for non-compliance.

•Social Initiatives for compensating the environmental impact of chemicals.

•Implementation of Environmental Health and Safety(EHS) Policy

•Initiation of Training programs for “safety measure to be adopted” to avoid accidents.

•Involvement of each and every person in the factory

•Implement Chemical Hygiene Plan (CHP) as per OSHA Laboratory Standards

•Safety posters to create the awareness.

Interface LLC•Setting up among primary goals for Health & safety of environment and society

•Separate dedicated team for control of hazards, for describing and analyzing probable cause of accidents/risks.

•Efforts to make the Green plant and processes by plantation etc.

•Social Initiatives for compensating the environmental impact of chemicals.

•Execution of regulatory norms.

•Implementation of Environmental Health and Safety(EHS) Policy

•Efficient and innovative ways for waste disposals.

•Back up plan for emergency /accidents

•Implement Chemical Hygiene Plan (CHP) as per OSHA Laboratory Standards

•Safety posters to create the awareness.