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United States Solid Waste and EPA530-N-96-007 Environmental Protection Emergency Response June 1996 Agency (5306W) 1EPA WasteWi$e Update 2 Printed on paper that contains at least 20 percent postconsumer fiber. Going Paperless With Technology Going Paperless With Technology

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Page 1: 1EPA WasteWi$e Update - P2 InfoHousepredicted the arrival of the “paperless office.” In the office of the future, they said, paper would be obso-lete: documents would be stored

United States Solid Waste and EPA530-N-96-007Environmental Protection Emergency Response June 1996Agency (5306W)

1EPA WasteWi$e Update

2 Printed on paper that contains at least 20 percent postconsumer fiber.

Going PaperlessWith TechnologyGoing PaperlessWith Technology

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WasteWi$e Update 2

S ince the onset of the computer age, experts havepredicted the arrival of the “paperless office.” In theoffice of the future, they said, paper would be obso-lete: documents would be stored in electronic direc-tories and transmitted from computer to computer.

There would be no file cabinets, reference books, or stacks ofoutgoing mail. There would also be little or no paper waste.

Even though this vision of a paperless office has beenmore difficult to realize than originally thought, someWasteWi$e partners are making real progress. Partners areusing electronic technology to reduce excess paper in a vari-ety of ways, including:

■ Computerized documents and filing systems—Several WasteWi$e partners have placed phone direc-tories, human resources documents, and corporatepolicy manuals on line to avoid constantly updatingpaper versions. Others are using electronic filing sys-tems to reduce the amount of paper copies made in the office.

■ Electronic data interchange (EDI)—EDI is theelectronic transfer of business information in a structuredformat from one computer to another. It is a high-speedmethod of electronically communicating large volumesof data without the use of paper. For example, ratherthan sending paper purchase orders and invoicesthrough the mail, WasteWi$e partners are invest-ing in EDI to carry out these transactions electronically.

■ CD/ROM and other interactive tools—CD/ROMs have enabled WasteWi$e partnersto store vast quantities of information, muchmore than would fit on an ordinary floppy disk,in an easy-to-use, interactive format.

In addition to reducing paper use, these emerging tech-nologies also improve efficiency, saving time usually neededto process paper forms. These benefits ultimately meanincreased savings for a company’s bottom line.

This issue highlights WasteWi$e partners’ experiencesimplementing electronic technologies that conserve paper.We look at their successes and the ways in which they’veovercome some typical concerns, such as the length of timeneeded to implement EDI and costs of purchasing softwareand training employees to use the technology. In addition,some WasteWi$e partners have found that suppliers or cus-tomers might also need help adjusting to new technologies.

In this issue, we examine an on-line purchasing catalogimplemented by Silicon Graphics, which the company esti-mates conserves 500,000 pages of paper per year, and illus-trate how Haworth has conserved paper by placing itsproduct catalogs on a CD/ROM. We also showcase the costand paper savings Phillips Petroleum and the SouthernCompany have achieved through their use of EDI. In otherarticles, we see how BellSouth Telecommunications andLockheed Martin achieve the benefits of computerized docu-ment storage.

WasteWi$e congratulates its partners on all the waysthey’ve used technology to conserve paper and increase effi-ciency. Along with their other benefits, paper-free technolo-gies offer another opportunity to be WasteWi$e.

Invoice

BidInvoice

InvoiceProposal

Going PaperlessWith Technology

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3 WasteWi$e Update

Q. What is Electronic Data Interchange?A. EDI is the electronic transfer of business information in a

structured format from one computer to another. EDI isjust one piece of a puzzle known as electronic commerce,which encompasses such activities as electronic mail, fax-ing, sharing information via networks and bulletinboards, bar coding, scanning, and imaging. Companiestypically use EDI for purchase orders and invoices. Otherapplications include shipment notification, checkissuance, and electronic transfer of funds; there are literal-ly hundreds of uses for EDI.

Q. When was EDI first introduced? When did itstart becoming so popular?

A. In 1975 the transportation industry became the first sec-tor to replace paper transactions with EDI. Since 1987EDI expenditures have grown 20 to 30 percent annually.EDI is now a $2 billion industry.

Q. Why do companies switch to EDI?A. EDI systems have proven themselves to be much more

efficient and accurate than paper systems, giving compa-nies a competitive edge. Research indicates that the vastmajority of the companies switching to EDI have nochoice if they want to stay in business—their principalcustomer or supplier told them to switch!

Q. What cost savings can I expect from using EDI?A. Depending on the size of your company, you can expect

to save $1 to $5 per document. Dan Ferguson, presidentof The EDI Group, Ltd., a company specializing in elec-

tronic commerce education, explains, “These dollar sav-ings are a result of eliminating redundant processingsteps, eliminating paper, and reducing the amount oflabor required to conduct the transaction.”

Q. What other benefits can I expect?A. According to the 1994 survey, companies switching to

EDI can expect to see a better than 50 percent decreasein error rates and an average 40 percent or greaterdecrease in total transaction time. With all of these bene-fits, you probably also have happier customers.

Q. What are the components of an EDI system?A. Typical EDI systems consist of three main components

(1) EDI translation software to generate, receive, andinterpret transacted information. (2) Hardware, includ-ing computers (mainframe, mid-range, or personal),modems, printer, and storage device. You may be able touse existing equipment, with upgrades as necessary. (3)Access to and continued support from a networkprovider that will transport your EDI information.

Q. What are typical EDI start-up costs?A. Initial start-up costs can be quite high. Ferguson esti-

mates that the cost to set up a typical EDI system aver-ages $10,000 on a personal computer platform; $50,000on a mid-range platform; and $100,000 on a mainframeplatform. Adding the substantial costs of researching,pilot testing, and training employees on the new systemcan drive costs much higher.

EDI: Answers to Common Questions

I f you’re not sure what EDI is, or how it canhelp your company, you’re not alone.According to a 1994 survey, the greatestbarrier to adopting EDI and experiencingsuccess is lack of knowledge about the

technology and its benefits. To help partners learnmore about EDI, WasteWi$e reviewed some commonquestions about this valuable tool.

(Continued on page 11)

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WasteWi$e Update 4

Haworth’sIntelligentFurniture Catalog

H ow many compact disks does it taketo hold 2,000 furniture catalogs? Justone! Salespeople at WasteWi$e part-ner Haworth, Inc., the second largestmanufacturer of office furniture in

the United States, can carry nearly a quarter ton ofsales literature to client meetings—all in the palmsof their hands. With SourceBook, a CD/ROM contain-ing more than 2,000 sales-related documents (e.g.,sales bulletins, price lists, forms, planning guides,fabric samples, and video clips), salespeople have awealth of information at their fingertips. Haworthestimates that if all of the information contained onone SourceBook CD were printed, the stack of paperwould be 6 feet tall and weigh 400 pounds.

Costs and BenefitsThe start-up costs for SourceBook included $500,000 for

software development and another $2 to 3 million for train-ing more than 600 people, purchasing laptop computers for260 market managers, and other indirect expenses. TedEvans, systems analyst responsible for Haworth’s CD/ROMpublications, explains, “It’s really too early to calculate hardcost figures, but we believe that from a marketing perspectivealone, SourceBook has already paid for itself through cus-tomer satisfaction, the general impressiveness and high visi-bility of the product, and the increase in employeeefficiency.”

Some of the many benefits that Haworth has realizedthrough SourceBook include:

■ Decreased printing costs and paper usage. Haworth fre-quently makes adjustments to prices and product lines,resulting in the need for updated sales literature, whichrequires vast amounts of paper. Reprinting these materialscosts Haworth more than $1 million annually. Over the nextfew years, Haworth plans to discontinue printing much ofthis literature, with the goal of decreasing its annual budgetfor reprints by 40 percent by the year 2005.

■ Higher-quality client presentations. Rather than cuttingup glossy catalogs to create presentations, the salespeoplenow custom design client presentations on the computer,complete with full-color graphics. This conserves paperand avoids discarding cut-up catalogs.

■ Greater customer satisfaction. Response time to cus-tomers’ questions has decreased since all of the informationthat salespeople need (e.g., prices) is at their fingertips.

■ New training opportunities. SourceBook serves as a goodtraining tool for both new employees and customers; it depictscompany activities and products. For example, one SourceBookvideo clip explains how Haworth makes wood veneer officefurniture and describes the different types of wood available.

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5 WasteWi$e Update

Evans comments, “The entirecompany is pleased with SourceBook,and we have received nothing butcompliments. In fact, Dick Haworth,the company’s chairman, wanted totry it out too. He recently receivedhis own laptop computer, completewith SourceBook, and loves it!”

Implementation ScheduleFrom concept to product,

SourceBook took about three years todevelop, beginning in 1992. Haworthspent approximately one year examin-ing the innovative proposal forSourceBook, including an initial cost-benefit analysis. Writing the softwaretook about a year as well, during which time the companydevised a 10-year schedule for implementation and expan-sion of SourceBook.

Haworth released SourceBook to its 350 independent dealersin February 1995. The company’s 260 internal market man-agers were up and running with laptop computers equippedwith SourceBook in November 1995. In early 1996, Haworthbegan targeting the first documents for printing reduction.

Haworth currently provides monthly updates of theSourceBook CD to its dealers and market managers. Thesesalespeople retain the old CDs as a reference library for his-toric prices, product lines, and video clips.

Challenges Take Time to ResolveAs with the introduction of any new technology, Haworth

encountered some challenges during the project. Timing was acrucial issue. Many of Haworth’s marketing activities are con-ducted by outside, independent dealers of office furniture aswell as internal Haworth employees, known as market man-agers. When the company introduced SourceBook in February1995, both the independent dealers and Haworth’s market

managers received training on how touse it. While the dealers possessed thehardware necessary to run SourceBook,the market managers were initiallywithout laptop computers and thusunable to use the new tool. As a result,Haworth’s market managers did notsupport the technology at first, especial-ly since part of their job involves sup-porting the independent dealers, as wellas servicing their own clients. ByNovember 1995, however, all of themarket managers were up and runningwith laptop computers and SourceBookthemselves. Evans remarks, “It’s difficultto pull them away from their comput-ers now! Although the market managersare now fully supportive of the technol-

ogy, they are not yet completely comfortable with it. Everyone isusing SourceBook, but perhaps not to its full potential. It willtake time to fully adjust to this new technology.”

Haworth’s Electronic HorizonHaworth is continuously making improvements and

expanding upon its original idea. Currently one-third of theSourceBook disk space is consumed by video clips, such as an11-minute interview with G.W. Haworth, the company’sfounder. In April 1996, Haworth expects to have enough videofor an entire CD/ROM, which will be used for both trainingand marketing purposes. The company is also in the process ofelectronically scanning fabric and finishing swatches, whicheventually will be contained on a separate CD/ROM.

Each page of a SourceBook document is currently format-ted as if it were a standard piece of paper. Once the need toprint the information decreases, Haworth will be able toimprove SourceBook formatting, making it more compatiblewith the electronic medium.

Evans notes, “We continue to learn new things thatSourceBook can be used for. It adds value to the company.”

“We believe that from a marketing perspective alone,SourceBook has already paid

for itself through customersatisfaction, the generalimpressiveness and high

visibility of the product, andthe increase in employee

efficiency.”Ted Evans, Systems Analyst, Haworth

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WasteWi$e Update 6

Lockheed Martin FliesHigh With InternetCommunication

While many companies develop a home pageon the Internet to communicate with cus-tomers, The Lockheed MartinCorporation went one step further. ThisWasteWi$e partner, headquartered in

Bethesda, Maryland, is also using the World Wide Webto communicate corporate policies and decisions to over80,000 employees nationwide.

Employees can quickly access information on both cor-porate and facility procedures from their desktop comput-ers. Lockheed Martin selected internet technology as themost effective way to convey vast amounts of informationand enable employees to search for specific information.

To ensure that Lockheed Martin’s corporate policiesand procedures are kept confidential, the network is pro-tected with a firewall. Only Lockheed Martin employeesand authorized guests are able to access the network.

“The Internet has proven to be a cost-effective andtimely way to distribute corporate policies and proce-dures,” says Nancy Corder, director of corporate policiesand procedures at Lockheed Martin. Using the Internet todistribute information has helped Lockheed Martin lowerbusiness costs by reducing staff time spent accessing infor-mation and the use of paper products. While LockheedMartin does not track the number of documents pulledoff the Internet, the company believes the associatedpaper savings are tremendous. Mailing just one 100-pagepolicy manual to each of the 80,000 employees connectedto the network would cost the company more than$250,000 in postage and paper costs.

Especially helpful in reducing paper costs is theInternet’s ability to incorporate and disseminate changesto documents on-line. Instead of printing and distribut-ing hard copies of revised policies and procedures,changes to documents can be made without using a single sheet of paper. Inaddition, the networkcan send on-linememos to employeesalerting them of anyrecent revisionsto documents.

Phillips Reaps Rewards Through EDI

A s a result of its use of EDI and other technologies,WasteWi$e partner Phillips Petroleum Companyhas saved almost $250,000 in paper, envelopes,and forms over seven years and conserved 210,000pounds of paper. The company, headquartered in

Bartlesville, Oklahoma, reaped these rewards by changing theway it does business with its suppliers.

In 1989, Phillips began paying a few of its major supplierselectronically (i.e., transferring funds via computers ratherthan paper checks). Since then, the company has expandedits use of electronic fund transfers to make an estimated615,000 payments, or 35 percent of Phillips’ total payments,annually. Start-up costs were low as Phillips developed theprogram through a partnership with its bank. The companybelieves that implementation costs, including a $25,000annual maintenance fee and $80,000 for an EDI translator,have been offset by the cost savings.

The company is currently expanding its use of technologyin two ways:

■ Encouraging major customers to replace check pay-ments with electronic fund transfers. Instead of sendingchecks each month, customers can save paper by transfer-ring money to Phillips electronically. Presently, 75 majorcustomers are making 300 payments each month.

■ Replacing paper purchase order forms with electroni-cally transmitted requests. When ordering paper, forexample, rather than filling out a purchase form and mail-ing it to Phillips’ paper supplier, the company can com-municate via computer with the supplier to place an order.Some 126,000 purchases have been made via computerorder since 1990.

Phillips’ use of these technologies has not only saved moneyand reduced waste, it has also improved efficiency. Transferringmoney and purchase orders electronically reduces the time andeffort formerly spent to process paper checks and forms.

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7 WasteWi$e Update

F rom start to finish, EDI improves the purchasingprocess,” says Steve Choat, The SouthernCompany’s EDI coordinator, Georgia Power,Procurement and Materials. The SouthernCompany, an electric utility holding company in

Atlanta, Georgia, developed a sys-tem to obtain price quotes fromvendors electronically, significantlyshortening the purchasing processand saving money. Choat estimatesthat Georgia Power, one of theseven utilities in the holding com-pany, saved $120,000 in avoidedadministrative costs in one yearalone.

Previously, the SouthernCompany requested price quotes fortransformers, cable, and other sup-plies and equipment via paperforms and received a bid documentin response. Any negotiations overprice, quantity, and availabilityrequired that documents be sentback and forth between the compa-ny and its suppliers. This correspondence lengthened thetime and increased the cost needed to select a supplier.

Today, the use of standardized EDI transactions cutsprocessing time significantly. More than 312 suppliers useutility-specific standards (known as ASC X12 EDI stan-dards), which enable the company to send and receiveprice quotes in a standard format. The ASC X12 standardshave been promoted by the Utilities Industry Group toboth utilities and their suppliers nationwide.

The Southern Company’s new process minimizes turn-around time because the standardized forms identify the infor-mation required from suppliers. Negotiations are conductedusing an electronic form of post-it notes that allow both par-ties to attach comments to specific sections. When all bids are

complete, the PurchasingDepartment reviews and selects asupplier. In many instances, employ-ees can then order the materialsdirectly from the supplier, throughtheir computers.

To calculate administrative costs(e.g., handling, paper, postage)avoided from electronic bidding,the company developed a conver-sion factor of $6 per EDI docu-ment based on a national survey ofEDI document costs and savings.The Southern Company multipliedthe 20,000 quotes received last yearby $6 to calculate savings. Toimplement the new system, theSouthern Company did incur net-work charges and technical service

costs. According to Choat, however, “With the cost savingsrealized through EDI, the new system more than pays foritself.”

An important benefit of the Southern Company’s elec-tronic bidding process was the reduction of paper use.Formerly, each quote averaged three pages, for a total of60,000 sheets each year. Thanks to the new paperless sys-tem, the company now conserves approximately 600pounds of paper per year.

Electronic Quotes Streamline the BiddingProcess at The Southern Company

“EDI has been immenselypopular with both large

and small suppliers.Everyone appreciates howit speeds up the paymentprocess and minimizes the

need for paperwork”Steve Choat, EDI Coordinator, Georgia Power,

Procurement and Materials, The Southern Company

Setting EDI Standards Industry WideThe Utilities Industry Group (UIG), a national association of 163 utilities and 98 utility suppliers, was formed in

1987 to investigate the benefits of standardizing EDI transactions in the utility industry. In coordination with theANSI Accredited Standards X-12 Committee, UIG developed national guidelines that govern electronic transfer ofinformation throughout the industry, allowing participating suppliers and utilities to use the same system.

According to Mercedes Johnson, head of a UIG task force on environmental issues, standardization makes electronictransactions easier for everyone in the industry. “For the utilities involved, the use of standard EDI procedures eliminatesmail and courier charges, improves production cycles, and reduces inventories, clerical workloads, and errors in on-timedata entry,” says Johnson. The suppliers’ process is also facilitated, because suppliers respond to utilities’ requests in astandard format, rather than having to adapt to hundreds of different formats for processing requests. “The overallresult of EDI standardization has been the improvement of business efficiencies throughout the industry,” adds Johnson.

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WasteWi$e Update 8

W ould your company invest in aproject if it could double itsinvestment within two years?Silicon Graphics expects that itspaperless purchasing project will

do just that. By developing a World Wide Web-basedpurchasing system, Silicon Graphics conserved overtwo and half tons of paper forms in just one year.Now, the company’s 11,000 employees can orderproducts and services electronically without leaving acostly paper trail.

Breaking the Paper ChainEarly in 1994, WasteWi$e partnerSilicon Graphics, a leading computermanufacturer, began investigatingopportunities to streamline its pur-chasing process and cut costs. Thecompany, based in Mountain View,California, noticed that in just twoyears the number of purchasing

transactions had increased by 90 percent, reaching 19,000transactions. Ben Gardner, manager of CorporatePurchasing, realized that he either needed to hire additionalpeople to handle the growing paperwork or reengineer thepurchasing process to become more efficient. He chose toresearch electronic commerce opportunities and put thesetechnologies to work for the company. Results to date indi-cate that his instinct was right on target. As a result of thepurchasing system, Silicon Graphics has saved money, paper,and time. According to Gardner, “In the upcoming year,Silicon Graphics expects the project’s savings to reach $2.1million.”

By replacing the multi-part paper forms with electronicforms, Silicon Graphics conserved approximately 500,000sheets of paper in just one year (60 to 70 percent of the paperis unrecyclable carbon paper). This estimate does not includethe paper generated by supplier organizations.

Improving EfficiencyUsing a Web-based system, thePurchasing Group reduced the num-ber of purchasing steps from 15 tothree. “That’s not all,” adds Gardner,“now employees can receive theirpurchases more quickly, too.Employee orders can often be filledwithin 24 hours instead of 3 weeks.”

Prior to implementing this system, the Purchasing Grouprouted every request through a series of cumbersome steps, log-ging items into various systems. To purchase an item, employ-ees searched through paper catalogs and sent a paper form tomanagement for approval. The manager then sent eachapproved form to the Purchasing Group. After logging in eachform, the Purchasing Group sent another form to the supplier,who sent back invoices and receipts. Finally, the AccountsPayable Group cut and mailed checks, logging in forms atevery step of the process. Keeping track of an item in the paperintensive process was time-consuming and frustrating.

Under Silicon Graphics’ new purchasing system, employeesbrowse supplier catalogs that are electronically linked to the sys-tem and fill out an electronic form. The system sends the formvia e-mail to the appropriate manager for approval. If the man-ager approves the request, the purchase order is transmitted tothe supplier via EDI. In the future, the system will allow digitalsignatures to acknowledge receipt of materials, and electronicinvoices and payments. Employees will also be able to track thestatus of an order at any point throughout the process.

Carbon Paper Outdated AtSilicon Graphics

“Paperless forms are no longer just thewave of the future at Silicon Graphics.

They are changing the way we dobusiness by saving the companymoney, time, and paper today.”

Ben Gardner, Manager, Corporate Purchasing, Silicon Graphics

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9 WasteWi$e Update

Glowing Reactions From All InvolvedSilicon Graphics’ new system makeslife easier for everyone involved,including suppliers. Managers areexcited about the savings in timeand money. Employees receive theirorders faster and do not get frus-trated because the order slip hasbeen misplaced. Suppliers are paid

promptly and now have the infrastructure in place to workelectronically with their other customers. Ben Gardnerconcludes, “Paperless forms are no longer just the wave ofthe future at Silicon Graphics. They are changing the waywe do business by saving the company money, time, andpaper today.”

Decision-Making ProcessThe project took more than a yearand a half to develop. SiliconGraphics’ Purchasing Group beganby researching purchasing systems atapproximately 20 companies througha benchmark study. The studyhelped identify the best purchasingpractices in the industry.

Concurrently, the company investigated commercial soft-ware available to facilitate electronic transactions. Unable tolocate software that met their needs, Silicon Graphicsresolved to develop its own purchasing system based on theWorld Wide Web and the company’s internal network.

To plan the new system, the company conducted numer-ous focus groups with employees and suppliers across thecountry. The focus groups helped the company design a sys-tem that would both enable employees to do their jobs moreeffectively and be compatible with suppliers’ systems.

Gardner notes that the most rewarding feedback fromusers of the new system has been, “Hey you guys really lis-tened to our advice. Thanks.”

Large Start-Up Costs Are Well Worth Itfor the Future

Silicon Graphics attributes its abili-ty to please all involved parties toits long and in-depth review ofwhat users of the system needed.The company’s motto throughoutthe project was “If the system is notfast, simple, and pretty, it’s notgoing to succeed!” The biggest

obstacle the Purchasing Group faced was getting people tounderstand the opportunities that electronic commercepresents.

Although project start-up costs exceeded $1 million,Gardner expects to achieve payback within nine months ofinitiating the project. In the first year, the project hasalready saved an estimated $200,000 for Silicon Graphicsand is expected to save $2.1 million in the second year asthe system is expanded to include additional purchasingfunctions. Initial costs were high because they included allof the efforts to research, design, develop, pilot, andimplement the system, as well as efforts to work with andeducate employees and suppliers. Now that the infrastruc-ture is in place, however, Silicon Graphics can expand itsuse of the electronic forms infrastructure into other com-pany groups.

● Research the current paper-based process from

“womb to tomb.”

Know the details from start to finish about where aform is initiated and sent.

● Look at the entire chain of individuals involved with

the process including all customers and suppliers.

Identifying all links is critical to designing a suc-cessful system.

● Listen to everyone’s suggestions and concerns and

incorporate key ideas.

Understanding supplies, customer, and employeeneeds helped Silicon Graphics design a systemthat works.

● Don’t be intimidated by the initial

start-up costs.

Once the infrastructure is inplace, the system can beexpanded to target otherareas where forms areprocessed, providingopportunities for addi-tional savings.

AdviceFrom Silicon Graphics

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WasteWi$e Update 10

W asteWi$e has 40 Endorsers, trade associa-tions and other organizations, that havepledged to promote WasteWi$e to theirmember companies. Endorsers areusing a variety of approaches

to educate their membership on wastereduction benefits. Consider, forexample, the approach used by theNational Automobile DealersAssociation (NADA), located in McLeanVirginia. In an effort to educate its20,000 dealership owners about waysto reduce waste and reap savings,NADA developed the WasteWi$eManagement Bulletin. The Bulletin,part of a series of educational guides for dealerships, isan easy-to-use tool designed to help dealerships under-stand the waste they generate and develop a strategy toreduce it. While most of the guides in the series havefocused on new regulations and standards, theWasteWi$e Management Bulletin is the first to highlightvoluntary initiatives for protecting the environment and

saving money. NADA plans to advertise the availabilityof the Bulletin in trade publications such as AutomotiveExecutive and Automotive News.

According to Patrick Rowsey of NADA’s Legal andRegulatory Group, NADA undertook this project because“we are moving out of the era of command and controlregulations and into the world of voluntary partnershipprograms like WasteWi$e that provide the flexibility forcompanies to implement cost-effective environmental

management programs.” NADA hopes that byeducating its membership about volun-tary programs, it can keep members on

the cutting edge and help them beproactive about waste reduction.

NADA researched dealershipwastes by surveying selected dealer-ships and performing a waste auditat one dealership. Based on this

information, NADA developed a mod-ified WasteWi$e goals form for use at

automotive dealerships, with sample activi-ties under the waste prevention, recycling, and buyingrecycled sections. For each recommended activity, NADAexplains how to implement it and discusses associatedbenefits and considerations.

For other WasteWi$e endorsers, developing similarguidance might be a useful way to alert your member-ship to the cost-saving opportunities of waste reduction.

WasteWi$e On Line

For more than two years, WasteWi$e has encour-aged companies to prevent waste at the source.We’re taking our own advice—WasteWi$e is nowusing Internet technology to reduce paper. Thenext time you’re taking a drive on the information

superhighway, check out our new home page athttp://www.epa.gov/epaoswer/wastewise.html.

On the WasteWi$e Home Page, you will find an assort-ment of waste reduction information at your fingertips,including WasteWi$e Update newsletters, a list of partners(updated periodically), and technical assistance tip sheets. Weprovide most documents in both text (ASCII) files andgraphics (PDF) files. As WasteWi$e develops new tip sheetsand other materials, we will add them to the home page.

The future of the WasteWi$e Home Page holds the fol-lowing enhancements:

■ On-line Registration. Businesses and other organizationswill be able to join WasteWi$e via on-line registration.Prospective members will simply enter the requested infor-mation on line, and e-mail directly to WasteWi$e.

■ On-line Distribution of Materials. Soon we will put theWasteWi$e Bulletin and other materials on the home page

regularly. If you have Internet access and would like usto stop sending paper copies of new materials, pleasecall the Helpline at 800 372-9473 and let us know.

■ On-line Reporting. As requested by several partners,WasteWi$e hopes to make on-line reporting available byMarch 1997. Partners will be able to complete their 1996Annual Reporting Forms and 1997 Goals IdentificationForms on line. Paper copies of both forms will remainavailable for those partners without Internet access.

We’ll let you know as these features are developed. If youhave questions or suggestions, you can also correspond withus via e-mail at [email protected].

WasteWi$e Home Page:

http://www.epa.gov/epaoswer/wastewise.html

WasteWi$e e-mail: [email protected]

Endorser Update:NADA Helps CarDealers Be WasteWi$e

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11 WasteWi$e Update

R E S O U R C E S

SELECTED EDI RESOURCESA wide variety of EDI and electronic commerceresources exist. Here are a few that WasteWi$e isaware of:

n EDI World. A monthly magazine of electronic com-merce that integrates management and technologyinformation with editorials and advertising. For moreinformation, call 800 336-4887 or send e-mail to [email protected]. Or visit the EDI World homepage (http://pwr.com/ediworld) to learn about itsbookstore, conference, and seminars.

n EDI Forum, The Journal of ElectronicCommerce. A quarterly journal featuring EDIresearch, trends, opinions, and case studies written bya variety of authors in the electronic commerce indus-try. For more information on this journal or The EDIGroup, Ltd., including courses and conferences, call708 848-0135 or send e-mail [email protected].

n Buyer’s Guide to Electronic Commerce.Describes e-mail, EDI, and electronic commerce prod-ucts and services; also available electronically. Formore information, call 770 951-2648 or send e-mailto [email protected].

n Internet links. Start with the home page of Premenos,an EDI software company (http://www.premenos.com),which will introduce you to many publications, websites, and e-mail addresses.

n Data Interchange Standards Association(DISA). Located in Alexandria, Virginia, this not-for-profit organization provides education and informa-tion on EDI and electronic commerce. DISA alsosponsors one of largest annual EDI conferences andexhibitions in the country. For more information, call703 548-7005.

n Electronic Commerce World Institute. Locatedin Montreal, Canada, this membership organizationoffers a global perspective on EDI and electronic com-merce, including current news from around the world.The Institute’s web site (http://www.ecworld.org) offerscase studies, links to related sites, and other usefulresources. For more information, call 514 288-3555 orsend e-mail to [email protected].

Q. What are the implementation costs of EDI?A. Implementation costs vary according to applications used

and the number of trading partners (i.e., other facilitieswithin one company or other companies with which youexchange information.) According to the 1994 survey, acompany with 100 or more trading partners invests an aver-age of $200,000 or more annually. A company with 10 orfewer trading partners may invest $10,000 or less per year.

Q. How long is the payback period?A. The typical payback period averages two and a half years.

The more trading partners and paper documents you con-vert to EDI, the greater your benefits will be and the short-er your payback period.

Q. What’s on the EDI horizon?A. Value-added networks (VANs) have long been the standard

choice for transporting EDI information from one comput-er to another. A new player is emerging—the Internet.Debate still ensues over the strengths and weaknesses ofVANs versus the Internet. Only time and experience willtell which one will ultimately serve more customers.

Q. What are the benefits of using VANs?A. VANs offer years of EDI experience and implementation

support for their customers, including trouble-shooting,communications monitoring, and policing for compliancewith EDI standards. VANs also provide a direct linkbetween computers, thus ensuring reliability, stability, andavailability.

Q. What are the benefits of using the Internet?A. Internet accounts usually allow many hours of use at much

lower costs than VANs. The Internet also offers worldwideaccess and rapid transport of information. Security and reli-ability are issues for EDI via the Internet. However, stan-dards such as including encryption and digital signaturetechniques are being developed.

Sources for EDI Questions and Answers1. 1994 survey, conducted by the EDI Group, Ltd., results published in

EDI Forum, The Journal of Electronic Commerce, 1994, “The RealFacts About EDI in 1994,” Daniel M. Ferguson.

2. Journal of Systems Management, March/April 1995, “EDI: AnAnalysis of Adoption, Uses, Benefits and Barriers,” VairamArunachalam, Asst. Professor of Accounting, University of Missouri,Columbia.

3. EDI Forum, The Journal of Electronic Commerce, 1995, “The Internet:A Strategic Backbone for EDI?,” Vince Hruska, Vice President, FirstInterstate Bank in Los Angeles.

4. EDI Forum, The Journal of Electronic Commerce, 1995, “EDI on theInternet,” Timothy Szal and Barbara Lloyd, Advantis.

5. Interview with Daniel Ferguson, president of The EDI Group, Ltd.,Oak Park, IL, March 1996.

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Page 12: 1EPA WasteWi$e Update - P2 InfoHousepredicted the arrival of the “paperless office.” In the office of the future, they said, paper would be obso-lete: documents would be stored

BellSouth Telecommunications Dials Up Big Savings

You might not think that something so seemingly sim-ple as storing reports electronically could save millions ofdollars, but that’s precisely what BellSouthTelecommunications (BST) has discovered. During 1994and 1995, the company conserved approximately 16 mil-lion sheets of printout paper and saved $3.5 million byimplementing an electronic filing system.

BST’s system of storing reports electronically enables

employees to view, download, or print reportsarchived in the company’s data centers from theirown workstations.

Implementing this system has helped the compa-ny conserve paper, improve efficiency, and reducethe need for paper storage. Prior to initiating theelectronic filing system, BST employees could onlyobtain reports by ordering printed copies. Foremployees requiring specific references or pagesfrom a report, this process often wasted time andpaper. Employees now can save resources by view-ing reports on line or printing individual pages.

Implementing an electronic filing system at BST hasnot been without challenges. “The greatest challenge hasbeen getting users to change their mindset for the need tohave a piece of paper in their hand,” says Lamar Poppell,environmental coordinator of BST’s InformationTechnologies-Operations. “Employees need to be assuredthat their reports are safe and accessible,” explainsPoppell. To overcome this challenge, the company haspublicized the advantages of the electronic filing system inits employee publication. BST also includes a note withall printed reports that details how much paper anemployee could have saved by not printing the reports.

WasteWi$e Update 12

1EPAUnited StatesEnvironmental Protection Agency(5306W)401 M Street, SW.Washington, DC 20460

Official BusinessPenalty for Private Use$300

WasteWi$e would like to hear about your efforts to achieve a“paperless office.” In addition, if you are not yet a WasteWi$epartner and would like to join, please let us know. Benefits ofmembership include technical assistance on waste reduction,publications, a peer match program, workshops, and more.Contact us at 800 EPA-WISE for more information.

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