<Insert Picture Here> Product Take Back, Recycling, Landfill and the Law

Transcription

1 <Insert Picture Here> Product Take Back, Recycling, Landfill and the Law Lee Sacco, Senior Director of Applications Development 1

2 Agenda 2 2 Environmental Impacts, Regulations and Compliance Return Streams and Recovering Value The Sun Reverse Supply Chain Questions and Answers

3 Safe Harbor Statement 3 3 The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

4 Agenda 4 4 Environmental Impacts, Regulations and Compliance Return Streams and Recovering Value The Sun Reverse Supply Chain Questions and Answers

5 Sun s 60 Minutes Moment

6 Environmental Constraints 6 6 WEEE Directive (2002/96/EC) Packaging Directive (94/62/EC) Battery Directive (2006/66/EC) Carbon Impact from RL Freight

7 Legislation: Global Trends 5 Provencial E-waste laws EU WEEE take back directive, 27 different laws Korea WEEE Act 23 US state E-waste bills China WEEE Jan 2011 E-waste laws in Mexico & Costa Rica Many E-waste laws in LATAM, including Brazil, Columbia, and Argentina Draft E- waste law in India E-waste laws emerging in Australia Modified *EICC Slide 7 7

8 New York E-waste Requirements 8 8 Requires reporting data from 3 years previous Must recycle other companies equipment upon sale of new equipment Offer consumer-convenient collection Must track every collection point, method & transfer Annual reporting fees $3000/yr

9 EU E-waste Requirements MONDAY, 7 FEBRUARY 2011 The European Parliament votes for tougher e-waste rules Last Thursday the European Parliament voted to press ahead with plans to tighten up the rules on waste electronic and electrical equipment (WEEE). They also want to make the rules simpler and introduce tougher measures to prevent the export of e-waste to developing countries. The European Parliament has proposed a 2012 target for Member States to collect 4kg of e-waste per inhabitant (the existing level) or the same weight as in 2010, whichever is greater. But by 2016 the figure goes up to 85% of the e-waste they produce. The legislation is not just about safe disposal, though. MEP s recommended a 50-75% recycling target (depending on the material involved) in order to reclaim valuable raw materials, and a new 5% re-use goal. With a significant amount of e-waste declared as "reusable" and illegally exported for treatment in developing countries, the European Parliament also supported the Commission s proposals for stricter inspections of shipments. Parliament believes that the exporter should carry the burden of proof that goods are reusable. Karl-Heinz Florenz (EPP, DE), who steered the draft legislation through Parliament, commented that "we can no longer afford to waste our waste. 9 9

10 Cost of Non-Compliance Fines Loss of potential revenue Product sale bans Import holds Brand reputation damage

11 Cost of Non-Compliance From: Walters, David Sent: Thursday, September 09, :01 AM To: Goss, Rick; Cc: Mel Nickerson Subject: Illinois Electronics Recycling and Reuse Act Gentlemen, As you are aware, the Illinois Electronic Product Recycling and Reuse Act requires television manufacturers to report total sales weight to the Illinois EPA. Their first reports covering the period January 1 to June 30, 2010 was due September 1. Out of 47 TV manufacturers registered with us, only 26 have completed this report. Please encourage your membership to comply with the legislation. Any OEM that fails to report as required by law is in violation of the law and subject to a fine of $1,000 and an additional penalty not to exceed $1,000 a day for each day the violation continues, see section 80(a). The sales weight will be used in determining next year s recycling goals. Thanks, and do not hesitate to contact me if you have any questions. David Walters, Manager Waste Reduction and Compliance Section Bureau of Land Illinois EPA 1021 North Grand Avenue Springfield, Illinois

12 Cost of Non-Compliance From: Walters, David Sent: Thursday, September 09, :01 AM To: Goss, Rick; Cc: Mel Nickerson Subject: Illinois Electronics Recycling and Reuse Act Gentlemen, As you are aware, the Illinois Electronic Product Recycling and Reuse Act requires television manufacturers to report total sales weight to the Illinois EPA. Their first reports covering the period January 1 to June 30, 2010 was due September 1. Out of 47 TV manufacturers registered with us, only 26 have completed this report. Please encourage your membership to comply with the legislation. Any OEM that fails to report as required by law is in violation of the law and subject to a fine of $1,000 and an additional penalty not to exceed $1,000 a day for each day the violation continues, see section 80(a). The sales weight will be used in determining next year s recycling goals. Thanks, and do not hesitate to contact me if you have any questions. David Walters, Manager Waste Reduction and Compliance Section Bureau of Land Illinois EPA 1021 North Grand Avenue Springfield, Illinois

13 Cost of Compliance $90 million

14 Cost of Compliance $90 million Estimated cost to comply with electronics recycling mandates across 19 US jurisdictions in 2010* *National Center for Electronics Recycling (NCER) study

15 Cost of Compliance $90 million Estimated cost to comply with electronics recycling mandates across 19 US jurisdictions in 2010* $71 million for collection, transportation and recycling of covered electronic products $14 million for internal compliance costs such as tracking, reporting and registration $4.5 million for government-incurred administrative costs *National Center for Electronics Recycling (NCER) study

16 Agenda Environmental Impacts, Regulations and Compliance Return Streams and Recovering Value The Sun Reverse Supply Chain Questions and Answers

17 Return Streams Online Sales Field Sales Direct Sales Partner Sales Distributors

18 Return Streams Return for Credit Service Returns Lease Returns Trade-ins Excess Part Returns WEEE Obsolete Internal Assets

19 Recovering Value Re-use Recover Recycle Landfill

20 Recovering Value Re-use Value Recovered Recover Recycle Landfill Disposition

21 Recovering Value Re-use Value Recovered Recover Recycle Landfill Disposition

22 Agenda Environmental Impacts, Regulations and Compliance Return Streams and Recovering Value The Sun Reverse Supply Chain Questions and Answers

23 Return Streams Return for Credit Service Returns Lease Returns Trade-ins Excess Part Returns WEEE Obsolete Internal Assets

24 Reverse Supply Chain Operations Re-use Value Recovered Recover Recycle Landfill Disposition

25 Field Service with FRU / CRU Repair

26 Return to Vendor

27 Trade In

28 Excess and Obsolete

29 Take-back Process Flow

30 FY10 Environmental Results Goal Expand global reach of Product Take back Increase the volume of product processed Ensure 1% or less of product goes to landfill Ensure no government noncompliance issues Implement formal on-site audit program w/ehs Qualify recycling centers closer to the customers Result 12 new countries reporting 15% increase yr/yr (>10M lbs) Met goal Met goal Met goal Complete, reduced freight miles (GHG) by 35%

31 FY10 Financial Results Reman System Revenue $48M Reman System GM 68% Spares Revenue $15M Service Cost $8M Internal Reuse & Recovery $7M Total Value $78M

32 The Eco-Enterprise 32 32

33 Customer Advisory Board 33 33

34 Customer Success High Tech Manage 15,000+ returns a day with 99.5% service level agreement compliance Enabled better decision making with a more complete view of key business information Medical Devices 75% reduction in customer wait times Achieved a 2 day turn-time on all repairs Able to price service contracts more aggressively due to ability to track costs and margins High Tech Industrial Manufacturing Industrial Manufacturing 98% reduction in status update times 7% increase in performance metrics Boosted repair and calibration services efficiency 83% reduction in turnaround time of technical requests 10x efficiency improvement in responding to customer inquiries Repair 800+ printers per day Able to comply with regulatory constraints and track that hazardous parts are disposed of properly 34 34

35 Reverse Supply Chain Guiding Principles Recover the highest value from returned materials 2. Reduce unnecessary shipping miles and packaging 3. Properly handle hazardous substances 4. Improve recovery rates 5. Learn from returns to improve product designs 6. Set eco-impact goals and measure results

36 Reverse Supply Chain Lessons Learned Moving from part sales to service contracts 2. More strictly managing service periods and end-of-life 3. More wisely managing returns policies 4. More wisely managing service level agreements 5. Reducing excess and obsolete using ATO 6. Reducing logistics costs by consolidating carriers 7. Reducing touches using intelligent disposition 8. Mandating use of approved recyclers in contracts 9. Closing the loop between design, engineering and RL

37 Agenda Environmental Impacts, Regulations and Compliance Return Streams and Recovering Value The Sun Reverse Supply Chain Questions and Answers

38 38 38

39 The Reverse Supply Chain A Systems Perspective 39 39

40 40 40 Sustainable Take-back 1. Recover the highest value from returned materials Rules engine determines best disposition

41 41 41 Sustainable Take-back 2. Reduce unnecessary shipping miles and packaging Rules engine determines to whom to send

42 42 42 Sustainable Take-back 2. Reduce unnecessary shipping miles and packaging Rules engine determines optimum routing

43 43 43 Sustainable Take-back 2. Reduce unnecessary shipping miles and packaging Exceeding return thresholds triggers alerts and corrective action

44 44 44 Sustainable Take-back 3. Properly handle hazardous substances Required documents automatically linked Bulletins trigger based on business rules Compliance tracked for audit

45 Sustainable Take-back Improve recovery rates Historical frequency of symptom Historical frequency of problem resolution

46 46 46 Sustainable Take-back 4. Improve recovery rates System recommendation based on symptoms

47 47 47 Sustainable Take-back 4. Improve recovery rates Embedded intelligence for most common part failures Embedded intelligence for most common resources required

48 48 48 Sustainable Take-back 5. Learn from returns to improve product designs

49 Sustainable Take-back Set eco-impact goals and measure results Eco-impact thresholds can be set by return stream for organization, business unit or enterprise

50 50 50 Sustainable Take-back 6. Set eco-impact goals and measure results

51 51 51 Sustainable Take-back 6. Set eco-impact goals and measure results