Improving environmental performance through reverse logistics at IBM(R)

Abstract

Environmental performance continues to be a focus item for many information technology companies. Regulations, laws, corporate and consumer awareness, as well as competitiveness, have companies initiating actions to reduce hazardous material, to take back their products, and to minimize product energy usage to name a few. To address these concerns and resultant performance measures, companies usually implement singular programs to address specific attributes within the spectrum of environmental activity. Sometimes even two or three programs are tied together, such as design for disassembly (DFD) and design for the environment (DFE). Rarely are multiple attributes addressed through one program. However, when examined closely, key aspects of the reverse logistics network can be linked and used to demonstrate how a company might use product end of life dispositioning to support its environmental activities and achieve financial success. This paper highlights how the Global Asset Recovery Services (GARS) organization of IBM's Global Financing division has integrated some of the key components of its reverse logistics network to support and enhance environmental performance. Industry challenges and practices associated with returning IT assets are examined. IBM's approach to these challenges as well as current and planned activities within the scope of resale, reuse, remanufacturing, demanufacturing, and disposal of returned computer and peripheral systems are discussed. Where applicable, data is used to indicate potential effectiveness, savings, or improvements.