Report logistics operatons case study dell computers

Furthermore, we will be clear about what specific green transportation technologies has Dell adopted, how they collaborate with their partners, what are the challenges Dell has faced in

MINISTRY OF TRANSPORT VIETNAM AVIATION ACADEMY

Wi1 REPORT LOGISTICS OPERATONS CASE STUDY: DELL COMPUTERS

Supervisor: Voak Adam John

Group 3:

Nguyễn Trường Sơn - 2250000070 Nguyễn Thị Thanh Trúc - 2250000084

Hồ Minh Chí - 2250000067 Hoàng Thị Thùy - 2250000027 Phạm Minh Thiên Tú - 2250000087

Ho Chi Minh City, 2024

COMMENTS OF THE TEACHER GRADING THE LESSON

TEACHER'S MARK

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reduction of the company’s carbon footprint? oo cece v21 re 12

overall efficiency and cost — effectiveness of Dell's supply chain operations?

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J Reverse logistics (REVLOGIS)s cccccccccccccccecccteccnettstenseestessueeeeeeeetseeens 18

2 Optimize transportation network cocci tet ete HH khay 19

3 Redesign packaging and labels ccc ccc TH nha 19

4 Use Aland ML in the supply ChAGIAL 0c ecttttteeetns 19

3 Develop suDp”? chai rrandgermenft du GSCM nghe, 20 Question 4: What challenges has Dell faced in implementing green logistics, and how has the company addressed these challenges to achieve its sustainability

øoals? (Chí, TÍú) - 2 0 2111122111115 1111211111511 11 1011111511111 kg 1 kh ch 20

1 Challenge in Transitioning to a Closed-Loop Recycling System: 21

2 Challengein Inyentory managemenf DF0C€SS 2c cà 22 KH: Ôi ri nan o 22

IV Recommend (Chi, Thùy) Q0 2221122211112 221112221155 122811 ra 23 4.1 Challenges in Transitioning to a Closed-Loop Recycling System 23 4.2 Challenges in inventory management proceSS 0 00.000 0: cccccceeeteeeeees 24

References ( Sơn )

THANK YOU

First of all, group 3 would like to send our sincere thanks to Mr Voak Adam John -

Logistics Operations Lecturer - class 22FIATA During the study process, the teacher

was very enthusiastic in teaching and guiding our group on many useful things in the subject as well as research writing skills so that the group had enough knowledge to carry out this research

However, due to limited personal knowledge and in-depth research, shortcomings

cannot be avoided We hope you will contribute some ideas to the group to help our group's research be more complete Once again, group 3 would like to send our deep thanks to the teacher and wish him health, happiness and success 1n his career

GUARANTEED

We can assure you that case study: Dell computers report was researched and produced

by Group 3

We have checked the data according to current regulations

case study: Dell computers reported results are honest and not copied from any other

group's assignments

The materials used 1n the article all have clear sources and origins

(Sign and write full name)

Nguyen Thị Thanh Truc

I.‘ Introduction (Tu)

Dell is among the world’s largest computer manufacturers and technology companies It became a private company in 2013 through an acquisition by Silver

Lake Partners, a private equity firm, and Michael Dell, the founder and CEO of Dell

Dell offers a wide range of IT hardware and software products and services Its

clients include numerous governments, large enterprises, small businesses, and

consumer markets Dell also markets third-party software and hardware It is known

particularly for its direct sales and customisation model and for its innovative supply

chain management

This assignment will explore the key issues in packaging and strategies adopted

by Dell Dell's growth and innovation has reflected the requirements and sustainability

A circular economy gives us the tool to tackle resource use, climate change and

biodiversity loss while addressing important social needs by repairing, refurbishing,

reintroducing, remanufacturing or recycling products, keeping them In the economy

The goal is to have very little to no waste Traditional economic approach is linear,

beginning from natural resources to final product and ultimately disposal Extending the life of electronic products and re-using components benefits the economy by

generating less CO2 emission compared to mining for raw materials or manufacturing

A circular economy is an industrial system that is restorative or regenerative by

intention and design It replaces the ‘end-of-life’ concept with restoration, shifts

towards the use of renewable energy, eliminates the use of toxic chemicals, which

impair reuse, and aims for the elimination of waste through the superior design of

materials, products, systems, and, within this, business models Such an economy 1s based on a few simple principles At its core, a circular economy aims to ‘design out’ waste Waste does not exist—products are designed and optimized for a cycle of

disassembly and reuse Furthermore, we will be clear about what specific green

transportation technologies has Dell adopted, how they collaborate with their partners, what are the challenges Dell has faced in implementing their plan, and how they

addressed the problems, and in what ways the integration of green logistics impacted

the overall efficiency and cost-effectiveness of Dell’s supply chain operations

The supply chain is the biggest area that has a direct impact on sustainability,

since all the products manufactured and the method used to manufacture affect our

natural and social resources A sustainable supply chain creates a value chain that is contained by suppliers, customers and also consumers all as partners to grow the

business while reducing the impact on our environment Dell has created the world's largest technology recycling program to combat E - waste The company has a value chain with twenty-one sustainable goals, these goals cross Dell's entire value chain

which starts from design to disposal The present case study focuses on throwing light

on the transformational journey of Dell from traditional to sustainable supply chain

The case study is teaching based case focusing on audience from discipline of

management studies specifically supply and logistics

Keyword: Dell Computer, Green logistics, challenges, circular economy, eco-friendly,

sustainable supply chain

II Theoretical Framework (Truc)

1 Circular Economy

Model diagram circular economy

In this research article, we discovered that Dell is using the Circular Economy

model for sustainable development and that the circular economy is gradually

becoming an inevitable trend in the field of Logistics

The concept of the circular economy has gained traction in recent years, Inspiring environmentalists, governments and businesses Once a fringe topic,

circularity is now globally acknowledged as the most promising solution to our

planet's looming sustainability problems However, there still exist many different

definitions and understandings of circular economy “A circular economy describes an

economic system that is based on business models which replace the ‘end-of-life’

concept with reducing, alternatively reusing, recycling and recovering materials in

production/distribution and consumption processes, thus operating at the micro level (products, companies, consumers), meso level (eco-industrial parks) and macro level (city, region, nation and be- yond), with the aim to accomplish sustainable

development, which implies creating environmental quality, economic prosperity and social equity, to the benefit of current and future generations” (Kirchherr et al., 2017) (**) How does circular economy work?

(https://www.rts.com/resources/guides/circular-economy/)

1 Designs out waste and pollution

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Circular economy designs out economic activities that negatively impact human health and natural systems This includes the release of greenhouse gasses, all types of

pollution and traffic congestion

2 Keeps products and materials in use

Circular economy favors designing products for durability, reuse,

remanufacturing, and recycling to keep materials circulating for as long as possible It’s an economy that encourages many different uses for materials instead of just using them up

3 Regenerates living systems

Circular economy avoids the use of fossil fuels and non-renewable energy By

preserving and enhancing renewable resources, 1t returns valuable nutrients to the soil

to support regeneration and actively improve the environment

2 Relevant concepts

In our research, we learn about the concepts related to the Circular Economy Model that Dell applies to its Green Supply Chain Management (GrSCM) Includes

the following definitions:

O Green Supply Chain Management (GSCM): GSCM concepts in previous literature range from green procurement to integrated green supply chains from supplier to manufacturer to customer and even Reverse Logistics (RL)

Srivastava however defines GSCM as “integrating environmental thinking into

supply-chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the

consumers as well as end-of-life management of the product after its useful life”

According to M Ghobakhloo, S H Tang, N Zulkifli and M K A Ariffin

have defined GSCM as follows:

Green Supply Chain Management (GSCM) = Green Product Design + Green

Material Management + Green Manufacturing Process + Green Distribution

and Marketing + Reverse Logistics (RL)

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Framework for implementing Green Supply Chain processes

O Green Purchasing/Procurement: GP is defined as an environmentally conscious purchasing initiative that strives to ensure that purchased products or materials meet the environmental goals set by the purchasing company, for example: such as reducing waste sources, promoting recycling, reuse, resource reduction and material substitution (Carter et al., 1998; Min and Galle, 2001; Zsidisin and Siferd, 2001) GP ensures that purchasing or supply chain managers consider sustainability in purchasing inputs, 1n addition to the traditional purchasing criteria of cost, quality and delivery (Jimenez and Lorente, 2001 Kannan et al., 2008; Lambert and Cooper, 2000) Therefore, Environmentally Prioritized Purchasing (EPP) or green purchasing 1s a process of selecting and purchasing products and services that minimize negative

impacts during the life cycle of production, transportation, use and

recycling

O Green Manufacturing (GM): ts the latest addition to the mission statements of several manufacturing companies GM is defined as manufacturing processes that use inputs that have a relatively low

environmental impact, are highly efficient, and produce little or no waste

or pollution GM can help reduce raw material costs, increase production efficiency, reduce environmental and labor safety costs, and improve corporate image (Ninlawan et al., 2011)

O Green Distribution: The distribution of goods is carned out by the companies themselves or by logistics and distribution companies,

creating a lot of waste and environmental damage Green distribution

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(GD) includes green packaging and green logistics Packaging

characteristics such as size, shape, and material have an impact on distribution because they affect the transport of the product Better packaging along with rearranged stacking patterns can reduce material usage, increase space utilization in warehouses and trailers, and reduce the amount of handling required (Ninlawan et al events, 2011)

O Green design: It is the design of a product or service that encourages environmental awareness Fiksel (1996) argues that organizations have a certain potential to become environmentally friendly in remanufacturing products Heavy industries with complex supply chains should consider

the benefits of reverse logistics (RL) Designers, primarily concerned

with product performance, must also take into account the influence of design details on the energy/material requirements for product

manufacture, use, and utilization (repatrability, remanufacturability and recyclability) Redesigned products will only be effective if they can provide at least the services of the product they replace By extending the useful life of equipment items, no additional raw materials are needed to produce new items Design and develop products that are recyclable, technically durable, reusable, harmlessly recoverable after use and environmentally compatible when disposed of (Gotzel C, Weidling J, Heisig G, Inderfurth K 1999)

O Reverse logistics: The supply chain that flows opposite to the traditional process of order, fulfillment and customer delivery It is the combined processes of planning, implementing, and controlling the flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin (Rogers et al

1998)

O Environmental, social and governance (ESG): ESG is a framework used to evaluate an organization's business and performance on various ethical and sustainability issues It also provides a way to measure business risks and opportunities in those areas

II Analysis (All members)

Question 1: What specific green transportation technologies has Dell adopted in its logistics strategy, and how have these technologies contributed to the reduction

of the company’s carbon footprint?

Dell Computer has implemented a Smart Green Logistics strategy by applying

policies to promote a circular economy with the aim of reducing electronic waste

globally and thereby protecting the planet

According to statistics revealed by Dell Computer, every year globally, 53.6 million tons of electronic devices become e-waste This is a number that represents the enormous amount of electronic waste that we humans create, from useful products that bring convenience to people through advanced technologies researched and developed

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day by day, now 53.6 million tons of electronic waste per year are just waste That makes the already large amount of total waste in the world become an even more huge amount If we calculate using an arithmetic progression, every two years globally there will be more than 100 million tons of electronic waste and only 17.4% is recycled and reused This is a really modest percentage for recycling and reusing electronic waste when we as humans can do much more and when the global population increases day

by day The amount of waste will not stop at that number but will increase, so what will the earth look like in the next few decades?

Creating an electronic device product is just the first step in Dell's business,

shipping the product to consumers is the next step that Dell needs to do Whether selling one product or selling hundreds of millions of products to one customer, the shipping distance remains the same, it does not change, but Dell needs to ensure

service and product quality no matter the customer What kind of customer? Take for

example shipping | laptop to Vietnam for private customers or Shipping 1000 laptops

to Vietnam for corporate customers That's why Dell always tries to promote technologies and initiatives to minimize the environmental impact of its business activities: Choosing the appropriate transportation method, optimizing distance, using appropriate packaging, etc Improve global transportation and logistics operations to reduce your Carbon footprint over time

1 Traffic Optimization

Grasping the practical situation, Dell focuses on optimizing means of transportation, transportation methods, and choosing the shortest route For example, instead of choosing air, we will now use sea for transportation, choosing fuel- optimized means to minimize waste and carbon emissions Not only does it apply to

shipping products to consumers, but Dell has applied it to its entire supply chain

2 Search & expand retail partners

With many partners and retailers, the product network will be more extensive

From there, the product will reach consumers faster In addition, the act of

consolidating shipments to distribute to many points will greatly reduce emissions, reduce transportation distance, and consumption fuel and carbon emissions

3 Optimize size and container

The shape and size of the packaging have a profound effect on the number of

units that can fit on a pallet or in a container We have focused on reducing packaging

size through the 3C strategy, allowing us to ship more units per pallet or per container

We have also improved our palletizing and trailer loading processes to take advantage

of changed dimensions and reduce loading times, helping to reduce fuel consumption and carbon emissions

4 Reverse logistics (product returns)

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We try our best to reduce product returns, but they do happen If an order is

canceled or returned, we quickly bring it back into service by refurbishing (if necessary) and reselling approximately 90% of returns — approximately 800,000 units

per year These products are resold through Global Dell Outlet and whether they are

Certified Refurbished, Dell Outlet New or Scratch and Dent, they are covered by the Like New warranty The remaining 10 percent that cannot be refurbished/resold will

be recycled responsibly "Product Takeback 1:1 - purposeful product recall" policy With smart economic thinking consistent with practice, Dell Computer has brought to Its customers a "responsible product recovery and recycling" service that 1s applied in

over 75 countries and has resulted in 800,000 tons of electronic equipment were

recalled in 2008 It was clear from the moment the campaign was launched that Dell Computer was a manufacturer of technology products, marketed its products, and until

it was no longer in use Dell Computer took action to reclaim and increase its life cycle

(recycling or reuse) By 2030, Dell Computer has determined that with the electronic devices that customers buy, | ton of electronic devices will be recycled and used The first and most visible benefit is the customer, the consumer where all services are completely free and really easy Dell Computer accepts all types of electronic devices

In every country condition, any brand (including products not manufactured by Dell Computer) provided that the product is used Customers can use it in exchange for the

remaining value of the product In select locations, Dell Computer will repair and

maintain recalled products and provide educational support to disadvantaged communities

For business enterprise customers, Dell Computer accepts any branded equipment owned or leased by the business, performing end-to-end Logistics

management Accordingly, business data will always be in a safe state, helping

business customers identify the value of old equipment or recycle it And then, Dell Computer provides business customers with comprehensive product reports for all recycled equipment

With the implementation of a smart strategy on Green Logistics, Dell has had unexpected achievements and clear goals to reduce the company's Carbon footprint

In Dell's most recent ESG report for fiscal year 2023, Dell made a sustainability push with extremely impressive results With 343.3 million Pounds (155.5 million Kg)

of sustainable materials and materials in products and product packaging; 39.3 million plastic bottles removed from oceans since 2009; collected 2.5 billion pounds

equivalent to 1.1 billion kg of used electronics

The goal is that by 2030, every customer who buys a product will have one

product recycled and reused From there, reduce the amount of new materials by 45%

when the product 1s renewed, reduce the amount of materials by 30% for recycled products by regenerating materials from recovered products

By 2050, net greenhouse gas (GHG) emissions will be zero, Dell sets on 3

ranges (1,2,3) At scale distance 1.2: with a target of reducing greenhouse gas emissions by 50% by 2030; Scope 2: use 100% electricity from sources across all Dell

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