TASK 1-D-3

IMPPLEMENT, MONITOR AND PROMOTE ORGANIZATIONAL AND SUPPLY CHAIN SAFETY POLICIES AND PROCEDRES - P. 187

1. Law & Regulations

2. Policies & Procedures

3. Supplier & Subcontractor Safety

4. Customer Driven Requirements

LAWS & REGULATIONS

-APPLICABLE LAWS-

P. 187

In US workplace safety is covered by tge Occupational safety and Health Act (OSHA)

OSHA PURPOSES

P. 188

a) To establish workplace safety standards

b) to provide rules for conducting investigations of accidents as well as routine inspections

c) to implement recordkeepong requirements

d) to require research on safey-in-the-workplace issues

WHO OSHA AFFECTS

Suppliers are held accountable for their own OSHA violations.

However SCM professionals should be sure to include "compliance with the law" clauses in their contracts.

PENALTIES FOR OSHA VIOLATIONS

P. 188

OSHA carries both criminal and ciliv penalities for managers when there are violations of standards or when an injury results from failure to correct violations

PERSONAL LIABILITY

P. 188

Under certain circumstances, an individual as well as an organization may be help legally responable for safety violations

ORGANIZATIONAL LIABILITY

P. 189

Laws in many countries impose a responsibility on the employers should take resonable actionsto ensure the safety, health and warefare of its employees at work.

Failure to do so could result in criminal and/or civil prosecution

DEPARTMENT OF TRANPORTATION

OR

THE OTHERS COUNTRY'S EQUIVALENT

P. 189

The US Department of Transportation (DOT) whichh has counterparts in nearly every country is responsible for the rules and regulations for air, water, and ground transport.

The DOT also regulates the transportation of hazordous materials, pipeline safety, the licensing of motor carriers and security for all forms of transport

DEPT. OF HOMELAND SECURITY (DHS)

OR

OTHER COUNTRIES EQUIVALENT

P. 189-190

The DHS and equivalent agencies in other countries are created for the purpose of preventing or deterring terrerist attacks and protecting against and responding to threats and hazards to the nation.

SIX POINT AGENDA FOR THE DHS

Points 1-3

P. 190

1. Increase overall preparedness, partuicularry for catastrophic events

2. Create better transportations security systems to move people and cargo more securly and efficiently

3. stregthen border security, interior enforcement and reform immigration processes performance.

 SIX POINT AGENDA FOR DHS

Point 4-6

P. 190

4. Enhance information sharing with DHS's partners

5. Improve DHS financial management, human resources development, procurremtn and information technology

6. Realign the DHS organization to maximize mission

POLICIES & PROCEDURES

- EMPLOYEE SAFETY-

P. 190

Organizations should develop safety polocies and procedures that only ensure compliance with laws but have as their goal the best available techniques and systems for assuring employee safety

TRAINING REQUIREMENTS

P. 190

Compliance is only possible when employees are afforded sufficient training on minimal legal requirements.

PERSONAL PROTECTIVE EQUIPMENT

P. 190-191

The organization is responsible for providing personal protection equipment such as clothing, helmet, goggles,, safety glasses, and other gear designed to protect emplotees

MSDS / POSTING REQUIREMENTS

P. 191

MSDS sheets should be on file for toxic materials.  The MSDS must be posted in the area where the employees are working with the material and must identify the product, its hazardous ingredients, it's chemical and physical properties,  its expiration date, emergency tephone numbers, and the last date the MSDS was revised.

2) Interpersonal skills for working with other cultures

p 151

-Learn the customs for communicating (verbal and nonverbal) /negotiating with other countries

-primary focus is on personal relationships

3) CULTURAL AWARENESS

P 151

-Gained thought methods as online training, books, immersion experiences, consultants and case studies

-knowledge of cultrual norms will increase SM profressional's effectiveness in building and maintaining relationships

4) FINANCIAL ISSUES

A) Landed cost analysis

p151-152

-SM professional must consider total landed cost of an imported item

-Landed cost model contains: supplier acquisition cost, inventory cost, admin overhead, in-transit inventory, duties, tariffs & taxes, transportation costs

4) FINANCIAL ISSUES

B) Exchange Rates

P 152

-Price at which they buying organiz. currency can be bought with onther currency or gold.

-The ER between 2 nations affects the price level of traded purchases and sales between them

-creates a disadvantage or advantage for buying organiz.

RECORD RETENTION

P. 191-194

What records?

Contracts, Employment files, maintenance records, MSDS, Bills of sale

How long should records be retained?

General practice is to retain them for six (6) years.

4) FINANCIAL ISSUES

B) Echange Rates cont.

p 152

ER concepts:

-Nominal official exchange rate (NOER)

-Real official exchange rate (ROER)

-Shadow exchange rate 1 (SER1)

-Weighted average tariff (WATR)

-Shadow exchange rate 2 (SER2)

-Shadow exchange rate 3 (SER3)

4) FINANCIAL ISSUES

B) Exchange Rates cont.

P 153

Forces that change ER:

 -Domestic compared to foreign inflation rates

-Commercial policies of the gov't (tariffs and nontariff barriers to trade

-International movements of capitals and incomes

INDUSTRY BEST PRACTICE

P. 194

When developing or updating organizational policies and procedures regargung saftey, it is recommended that organizations review best practices in their industry.

4) FINANCIAL ISSUES

C) Payment Mechanisms

P 153

2 major forms of payment for international purchases:

1). Letter of credit- doc. that assures the seller that pymt will be made by the bank issuing the LOC. 

2). Bill of exchange or draft- doc. drawn by the seller on the buyer, instructing the buyer to pay the amount of the purchaseunder specified circumstances

STORAGE REQUIREMENTS

P. 194

Systems should be established for the storage and maintenance of documents needed for policies, procedurtes, and reporting requirements.

SUPPLIER AND SUBCONTRACTOR SAFETY

-AUDIT AND REVIEW-

P. 194

The supply management professional should asses and evaluate the supplier's and subcontractor's safety histories. With access to all of the organization's citations and inspections, the safety audit may be conducted relatively conveniently.

TRAINING

P. 195

Many organizations require suppliers and subcontractors to participate in safety training sessions conducted on site or via computer or the internet. Some organizations requires suppliers to deliver such training to their employees and subcontractors, reguardless of geographical location, on a perodic basis as a requirement of the contract

4) FINANCIAL ISSUSES

D) Taxes

P 154

CUSTOMER - DRIVER

REQUIREMENTS

P. 195

Certain customers, such as the US federal governement may require that the buying organization and its supplies comply with certain legal requirements.

The perception that theorganization orits suppliers are intensive to these laws or to the issue of equal opportunity can create an adverse reaction, as well as the possibility of losing governmental contracting status.