CHEMICAL MANAGEMENT AT

DELTA AIRLINES

SUBMITTED BY : PAWAN KUMAR VERMA

ROLL # 28NMP70

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

OPPORTUNITY

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

Reduction in TCO (Total cost of ownership)

No prior experience to Interface-LLC in the field

Freeing the space of 30,000 square feet (Cost Saving of $ .9 m =

30000*30/1000000)

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

Simplifying the supplier base and minimize intermediaries

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

Faster Delivery period (Routine supplies 3 Hours and

Expedited supplies 2 Hours)

Loss
Loss of contracts with long term strategic suppliers/partners
Resistance
Resistance within Delta may impact operation performance
Interface-LLC
Interface-LLC may over control the chemical supplies and may
sudden increase the prices.
Long
Long period of 6 months for implementation.

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

OPPORTUNITY

Shelf life of the Chemicals. Beyond shelf life

the chemicals will be waste and incurred the
cost.

Chemical Management program for InterfaceLLC is the new tool for business startup

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 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.

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

Interface-LLC

No need to go for Regularity requirements as Delta will not

be holding large quantities of Chemicals.

Need for Regularity requirements as Interface-LLC will be

holding large quantities of Chemicals.

Saving of $ 1 million against usages, Air emissions and

disposal amounts.

Economics of scale in process for maintaining the hazardous

chemicals.

Reduction in the cost of 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.

Saving
Saving against SKUs (stock keeping units)

Need to track and report on chemical emissions as per Clean

Air Act.

As the delivery period is short, they not need to store

chemicals in huge quantity so no reporting required to EPA.

No hazard chemical wastage due

May certify as green field company following Clean Air

Act. No huge chemical emissions.

MSDS to be maintained for each chemical procured by

Interface-LLC

No hazard chemical wastage

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.

Interface LLC
Setting
Setting up among primary goals for Health & safety of environment and
society
Separate
Separate dedicated team for control of hazards, for describing and
analyzing probable cause of accidents/risks.
Efforts
Efforts to make the Green plant and processes by plantation etc.
Social Initiatives for compensating the environmental impact of chemicals.
Execution
Execution of regulatory norms.
Implementation of Environmental Health and Safety(EHS) Policy
Efficient and innovative ways for waste disposals.

Involvement
Involvement of each and every person in the factory

Back up plan for emergency /accidents

Implement Chemical Hygiene Plan (CHP) as per OSHA Laboratory

Standards

Implement Chemical Hygiene Plan (CHP) as per OSHA Laboratory

Standards

Safety
Safety posters to create the awareness.

Safety posters to create the awareness.