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HD Supply Constructs EH&S Compliance Infrastructure Using ESS Platform
to Support Multiple Systems
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Professional builders know that HD Supply (HDS) is leading wholesale distribution companies, focused solely on serving the infrastructure, construction, maintenance, repair and remodeling industries. They also know that HDS is very successful – with 12 Lines of Business, 1,000 locations in North America, 23,000 associates and $13 billion in annual sales. But they may not know that HDS is a leader in addressing sustainability management challenges. As the HDS website says, “We are committed to minimizing the environmental health and safety risk for our associates and our customers” and “we will comply with environmental laws and maintain programs and procedures to ensure compliance.”
The Challenge
- Enhance data management and reporting for EH&S compliance.
- Leverage existing third-party information management resources.
- Reduce costs of EH&S compliance.
The Solution
- Essential Chemical Inventory™
- Essential Compliance Manager™
- Essential Emergency™
- Essential Performance Manager™
- Essential Task Manager™
- Essential Waste™
The Results
- Achieved data integration with multiple third party administrators and vendors to create unified EH&S system
- Gained efficiencies by shaping new naming conventions and workflows.
- Enabled departments and Lines of Business to collaborate more closely and resolve issues
- Set stage for cost savings through replacement of manual work processes
In March 2007, HDS took an important step forward in achieving those goals when it began implementing a new information system that it called the Safety Environmental Compliance Action Tool or SECAT. SECAT is designed to enhance HDS’ data management and reporting of environmental, health and safety (EH&S) activities. The project, which was sponsored by the company’s senior leadership, was cost justified by predicted reductions in vendor and consultant expense.
In SECAT, HDS has demonstrated new best practices in EH&S management by creating an integrated information technology infrastructure. HDS chose Essential Suite software from ESS as SECAT’s central platform and integrated it with various outside vendors and third-party administrators in order to utilize data more efficiently for EH&S compliance. HDS implemented ESS modules for:
Waste Management – Essential Waste is used to track waste storage, disposal, and shipments. In SECAT, it provides bidirectional integration with HDS’ national waste disposal partner, PSC, to obtain shipment and disposal information. Historically this workflow utilized a phone based approach and two outside vendors. Replacing this process with an automated system was a primary opportunity for cost savings. Now an associate selects the material they want to dispose of from the list of products provided from HDS’ Enterprise Resource Planning (ERP) systems. Based on their selection, the system generates the label, provides the vendor with data to generate a manifest and schedules the pickup with the waste hauler. After disposal the waste hauler’s software sends SECAT an update with manifest and cost information.
Task Tracking and Compliance – Essential Compliance Manager and Essential Task Manager are used to track EHS compliance requirements, tasks, and the relationship between the compliance requirements and tasks associated with waste and chemical inventory management. These modules provide unidirectional integration with the HD Supply’s HR database and Real Estate database to ensure employee names and location information are updated and current.
Chemical Inventory – Essential Chemical Inventory will eventually track the amounts and locations of materials at HDS operations. A material estimate approach is being used versus detailed container approach inventory management. In SECAT, this module is planned to provide unidirectional integration with HD Supply’s ERP systems to updated product inventories. Product EH&S characteristic data was batch loaded from HD Supply’s third-party MSDS vendor.
Incident Management – Essential Incident will be used to track EH&S incidents, root-cause analysis, and corrective actions. Implementation will begin when HDS finishes the implementation of the Waste and Task Tracking Modules.
Performance Management – Essential Performance Manager is used to collect, track, and report key performance indicators for benchmarking compliance efforts and environmental health and safety goals. Performance manager data is displayed to users via a custom developed dashboard/splash screen including drill down functionality.
The SECAT project started two years ago in an effort to provide a tool to better manage EH&S compliance and HD Supply has already achieved a number of successes through its implementation. By building this integrated system, HDS has helped to shape new naming conventions and workflows. Departments and Lines of Businesses have come together to resolve issues that were left unresolved in the past. And HDS has developed standardized approaches and resolved issues with multiple enterprise resource plans.
With SECAT, HD Supply is now positioned for improved EH&S compliance and governance in 2008 and beyond.
