8/8/2019 GSCM CASE

1/8

8/8/2019 GSCM CASE

2/8

Table of ContentsIntroduction: ................................ ................................ ................................ ................................ ...... 2

Green Supply Chain Management ................................ ................................ ................................ .. 2

GSC and CISCO: ................................ ................................ ................................ ............................... 3

Vision ................................ ................................ ................................ ................................ ............ 3GSC at CISCO; Implementing process: ................................ ................................ .......................... 4

Steps Taken By CISCO to Integrate GSC: ................................ ................................ ...................... 4

Conclusion: ................................ ................................ ................................ ................................ ....... 7

8/8/2019 GSCM CASE

3/8

(G)REEN (S)UPPLY (C)HA I N at Cisco

I ntroduction:

In the last few decades there has been an increase in the consciousness of people when it

comes to environment. More people are aware of the worlds environmental problems such

as global warming, toxic substance usage, and decreasing in non-replenish resources. The

Government has released campaigns to promote this problem to people. Increasing global

environmental awareness, greater regulatory and governmental pressures in many countrieshave combined to provide large incentives to companies to reduce their carbon footprints.

Several organizations responded to this they have made well directed attempts to implement

green principles to their company, which includes using environmental friendly raw material,

reducing the usage of petroleum power, and using the recycle papers for packaging, etc.

Green principles have expanded, many departments within an organization, including supply

chain. As a result of which Green supply chain management (GSCM ) was emerging in the

last few years.

Green Supply Chain Management (GSCM ) is defined as "the process of using

environmentally friendly inputs and transforming these inputs into outputs that can be

reclaimed and re-used or help reduce wastage at the end of their lifecycle thus, creating a

sustainable supply chain.

8/8/2019 GSCM CASE

4/8

GSC and C I SCO:

A company doesn't go green overnight. Those companies that are successfully going green

realize it is a journey. Cisco looks at supplier relationship management as a way to address

the green supply chain, rather than addressing it on the transportation side. They perform

quarterly reviews of their procedures to ensure they and their suppliers are working within

Cisco's green guidelines for consumption. They are also focused on how they package and

ship their goods, with reducing the amount of packaging materials as one desired outcome.

In this sagging economy, every bit counts: Cisco saved over $3 million last year (2008) by

cutting carbon emissions and waste throughout its global supply chain, according to the

company's latest sustainability report.

Cisco reports seeing the most cost benefit from using less paper, saving 2.7 million sheets of

paper and at least $1. 2 million a year just by converting paper documentation to CDs. The

company is saving another 22 million sheets of paper and $1 million in printing costs by

changing the format and reducing the font size of required printed material.

Cisco chalks up a further $ 880 ,000 annual savings by recycling 13% of the plastic used in the

production of its I P phones.

Finally, the company is redeploying about 57% of the $ 275 million worth of products

received through its closed-loop reverse supply chain takeback program. (That is a 63% jump

in value recovery from F Y07 to F Y08 .) Products that are not redeployed are recycled, leavingless than 1% of nonrecyclable material as true scrap, according to Cisco.

VisionCisco approaches the green supply chain holistically, from initial design to end-of-life

recycling. Cisco is developing the strategy and leading cross-divisional programs to reduce

the environmental impact associated with Cisco products throughout their lifecycle,

including supply chain practices that:y Increase natural resource conservation and efficiency while reducing raw material,y fabrication, packaging and transport costsy R educe waste while improving product design, packaging, and delivery costsy Decrease or eliminate the use of potentially hazardous substances

8/8/2019 GSCM CASE

5/8

GSC at C I SCO; I mplementing process:

y identify environmental costs within your process or facilityy determine opportunities which would yield significant cost savings and reduce

environmental impact

y calculate the benefits of your proposed alternatives y decide, implement and monitor improvement given by the implementation

Steps Taken By C I SCO to I ntegrate GSC:

Using Product Compliance Assurance Process (PCAP) which is a risk-based compliance

assurance process across the supply chain to demonstrate due diligence in preventing the use

of restricted substances in Cisco products. A process-based approach to compliance enables

Cisco to assess the risk of supplier non-compliance and is a critical part of the mission to

diligently ensure standards of quality and care.

Supply Chain RoHS (Restriction of Hazardous Substances ) Validation Program is

applied across the supply chain to monitor and document the supply chains use of controlled

chemical substances identified by R oHS, the R estriction of Hazardous Substances Directives

issued by China and the European Union. Cisco is in full compliance with both Directives

and is working to meet the requirements of new, additional R oHS-like legislation in other

countries.

8/8/2019 GSCM CASE

6/8

Cisco kicked off its lead-free program in January 2007 to monitor regulatory trends and

work to balance customer quality perceptions and supplier activity. The implementation of

the lead-free program will transition Cisco, Linksys, and Scientific Atlanta product lines to

use lead-free solder and address the technology issues surrounding the quality and robustness

of lead-free solder. Ciscos goal is to remove lead in solder from the supply chain for all

Cisco, Scientific Atlanta, and Linksys products by 2011.

Developed in partnership with an enterprise customer to help it realize its environmental

goals, a recent green packaging pilot program reduced packaging materials by 77%, saving

over 3.7 million pounds from going into landfill.

Cisco continues to focus on eliminating all classes of Ozone Depleting Substances (ODS)

from the supply chain.

Along with this Cisco also made commitments to reduce the environmental impact of its

products which includes environmental considerations in the design phase of product

development, such as:

y E nergy E fficiency: Continually searching for ways to improve product performance

while maintaining or reducing energy demands. For example, one product design

incorporated a thermo-management circuit to the board design. The circuit operates the

8/8/2019 GSCM CASE

7/8

8/8/2019 GSCM CASE

8/8

Conclusion:These initiatives all contribute to the company s aim of reducing its absolute greenhouse gas

emissions 25% from 2007 levels by 2012.

Cisco considers itself a "virtual manufacturer," outsourcing the bulk of its manufacturing

operations to supply partners. Cisco says it is working closely with supply chain partners andmonitoring their ongoing compliance with the company' Supplier Code of Conduct

"Standardizing the process of measuring environmental impacts throughout a company s

supply chain is still in the formative stage," the report says. "The scale and magnitude of the

task requires collaboration with industry peers and supply chain partners."

Cisco received third-party audit reports from just 31 of its 6 00 suppliers last year. The

company says it plans to implement quantitative environmental metrics for measuring

greenhouse gas emissions, energy use, and other areas of sustainability throughout its entiresupply chain in F Y09 .