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Cisco Sustainable Packaging Update
1.
Cisco at a
Glance Worldwide leader in networking Broad range of products for the Internet and solutions: Headquartered in San Jose, CA Networking Systems Data Center More than 67,000 employees Collaboration, Voice and Video in 75 Countries Mobility/Wireless $36.1B FY’09 revenue Security © 2009 Cisco Systems, Inc. All rights reserved. 1
2.
Customer Value Chain
Management: A Global Presence Mission Team By the Numbers Provide an unrivaled, ~8,000 employees* >1,000 suppliers end-to-end experience 90+ locations / 32 4 contract to our customers countries manufacturing partners 9 functional groups 95% of manufacturing is outsourced *includes Scientific Atlanta and Linksys © 2009 Cisco Systems, Inc. All rights reserved. 2
3.
Cisco’s Complex Value
Chain Hybrid Wide Range Most Breadth of Acquisition Production of Products Products Customers Integration Model Are (133 to date) (95% Configured Outsourced) to Order © 2009 Cisco Systems, Inc. All rights reserved. 3
4.
Sustainable Value Chain
Management: Action Plan Design & Power Efficiency in Design Evolve Products Transition to/Design with Lead-Free Solder Materials Management: Controlled Substances Specification Source & Ozone Depleting Substances Program Manufacture Comprehensive Worldwide Battery Specification Recyclable Packaging Materials Package & Packaging Design Efficiency Transport Volume/Weight = Transport = Carbon Emissions Reverse Accessory Election = duplication = Cust. Sat. Logistics Waste via reuse & refurbishment © 2009 Cisco Systems, Inc. All rights reserved. 4
5.
Collaborating on Sustainability: Optics
Module Packaging Innovation Eng. Team Doc Team Pkg. Team Collaborative Technical Document Packaging Approach Spec Reduction Reduction Eco-conscious Design with Reduced OLD NEW Costs © 2009 Cisco Systems, Inc. All rights reserved. 5
6.
Collaboration on Sustainability:
Responding to Customer Feedback Goal Volume Reduction & Customer Satisfaction Target Packaging at the Design Stage! Phase I: size of anti-static & doc. bags & boxes; green Plan for bag material Success Note: to date with 1 family of products Phase 1: 2-2.5M/year Plastic cut 50% (56k lbs); 33,429 lbs. of ESD bag waste Savings recyclable material Chargeable weight reduced ~ 60% ( transport savings) © 2009 Cisco Systems, Inc. All rights reserved. 6
7.
Collaboration on Sustainability: Responding
to Customer Feedback Before After © 2009 Cisco Systems, Inc. All rights reserved. 7
8.
Sustainable Packaging Design:
Improving Efficiency Goal Volume Reduction & Transport Efficiency Reconfiguring Product Packing Maximize carton capacity Plan for e.g.: Use of multi-packs Success Innovative pre-installation of components $1.82 M/year Savings 31,260 lbs. carton material eliminated Equivalent of 32 transport containers eliminated © 2009 Cisco Systems, Inc. All rights reserved. 8
9.
TelePresence CTS-3000 Example New
Design: 9 containers vs. 83 cartons Stackable 9 per truck vs. 2 per truck © 2009 Cisco Systems, Inc. All rights reserved. 9
10.
CRS Ship Configured:
$2M savings OLD MODEL Containerize Packaged Cards Build & Test Depopulate Cards Package All Cards NEW MODEL Build & Test Depopulate Cards Package All Cards © 2009 Cisco Systems, Inc. All rights reserved. 10
11.
Sustainable Package Design:
Minimizing Documentation Goal Waste Reduction & Manufacturing Efficiency Meet regulatory disclosure requirements while reducing environmental impact to the greatest extent possible Migrate from paper to CD – Spring 2007 Plan for Optically reduce size of all documents 65% or more 8.5X11 Success becomes 5.X7.55 – Fall 2008 Move to “pointer docs” – January 2009 FY09 Savings 1.8 billion sheets of paper Savings 53 million lbs. CO2 eliminated 200 million gallons waste water eliminated 17 million lbs. solid waste eliminated © 2009 Cisco Systems, Inc. All rights reserved. 11
12.
Sustainable Package Design: Minimizing
Documentation Before After Coordinated Carton & Document reduction! © 2009 Cisco Systems, Inc. All rights reserved. 12
13.
Sustainable Packaging Design:
End Cap Materials Goal Volume Reduction & Materials Management Replace Virgin Foam (petroleum based) with previously used, 100% recycled plastic Plan for Introduced on 8xx series product Success Other Products to follow Change @ 3 sites saves 50 cubic meters/mo. per site Savings Annualized savings = $765k (transport cost) © 2009 Cisco Systems, Inc. All rights reserved. 13
14.
Sustainable Packaging Design: End
Cap Materials Before After © 2009 Cisco Systems, Inc. All rights reserved. 14
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