2007 Sustainability Report - Baxter Sustainability Report

ight Xu Bo is an employee at Baxter'sSuzhou, China, manufacturing facility, wherethe company produces tubing sets andcontainers for intravenous and peritonealdialysis solutions.Since 2005, Baxter has been a member of the Green Suppliers Network (GSN), a collaborationof industry, the U.S. Environmental Protection Agency and the U.S. Department ofCommerce. The GSN works with large manufacturers such as Baxter to engage their suppliersin low-cost technical reviews to identify strategies for improving processes and usingmaterials more efficiently.Participating suppliers have realized significant benefits. For example, LeHigh Press PuertoRico 1 , which manufactures package inserts and labels, identified opportunities ranging fromimproving on-time delivery to increasing energy efficiency, and developed process maps andplans to implement those changes. The effort has produced substantial savings for LeHighPress, including improved material handling (saving $27,000 annually), enhanced materialutilization ($53,000), reduced waste generation ($47,000) and other opportunities adding upto more than $200,000 a year.Through working with LeHigh Press and other suppliers, Baxter has learned the importanceof finding the right partners within a supplier organization and developing metrics to enableparticipants to understand potential benefits and opportunities.See more information about this initiative in the full report online.CustomersBaxter’s supply chain extends from producers of raw materials to end users of Baxter’sproducts and must function without interruption even when unexpected crises occur.For example, when severe weather threatens a Baxter facility, the company may relocateits customer service representatives so they can continue serving patients and customers.Increasing Efficiency Through e-commerceBaxter offers customers the eServices Center, a Web portal for order placement, inquiriesand shipment tracking. Customers can find approximately 80 percent of Baxter’s productsin the company’s on-line catalog, which is available in 14 countries. Baxter supports electronicdata interchange (EDI) as well as transactions processed through the Global HealthcareExchange. The exchange, owned by Baxter and other manufacturers, group purchasingorganizations (GPOs) and distributors, enables healthcare providers to transact with multiplevendors through one connection. Electronic ordering, invoicing, payment and othertransactions reduce costs. In the United States, nearly 75 percent of customer order linesare handled electronically. Baxter eliminated more than 700,000 paper invoices by usinge-commerce in 2007.1 This example is based on content from Target Magazine with permission from the Association for Manufacturing Excellence (AME), 2008.29 sustainability.baxter.com/supply_chain