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Dell's Reverse Supply Chain

Dell's reverse supply chain is driven primarily by legislation and regulations regarding waste electrical and electronic equipment, especially the WEEE directive issued by the European Union in 2003 which makes Dell responsible for recycling obsolete products. Dell must tailor its reverse supply chain operations to comply with different and changing regulations around the world. Customers are also increasingly environmentally aware and may want Dell to meet internal sustainability goals. Dell outsources all aspects of its reverse supply chain and has processes for reconditioning, reselling, and recycling returned products depending on their age and condition through various partners.

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223 views2 pages

Dell's Reverse Supply Chain

Dell's reverse supply chain is driven primarily by legislation and regulations regarding waste electrical and electronic equipment, especially the WEEE directive issued by the European Union in 2003 which makes Dell responsible for recycling obsolete products. Dell must tailor its reverse supply chain operations to comply with different and changing regulations around the world. Customers are also increasingly environmentally aware and may want Dell to meet internal sustainability goals. Dell outsources all aspects of its reverse supply chain and has processes for reconditioning, reselling, and recycling returned products depending on their age and condition through various partners.

Uploaded by

Phúc An
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to Dell’s reverse supply chain

The main drivers of Dell’s reverse supply chain are the legislations, regulations and customer service.
And the regulation that has had a biggest impact on Dell’s reverse supply chain is (Waste Electrical
and Electronic Equipment ) issued by European Union in 2003. With this regulation, Dell take full
reponsibility for obsolete products, which mean if a customer wants to return a product, the law
obligates Dell to provide for complimentar recycling.

Because the differences between the legislations in different countries. Dell have to spend a lot
resources making sure that its RSC is up to date with the prevailing legislation and regulations in
each country.

Also, customer are getting more aware of environment issues and mighr also have internal
environmental goals that need to be fulfilled.

Dell’s reverse supply chain:

All of Dell’s reverse supply chain processed are outsourced.

Here is the model of Dell’s reverse supply chain service:

When the customers want Dell to recondition and resell the IT-product, customer will go to the
partner of Dell in the country they are living. The IT-product's data first will be ereased in order to
protect customer’s information. Beside that, Dell encourage their customer to resell their IT-
products by themself. The reason is whether customer can resell their IT-products, it more
environemtally friendly than recyling and also the price of the product based off today’s value which
higher than after recycling.

Then, Dell has a set of pre-detemined standards in order to make the RSC more efficient. With
product less than 4 years old are considered still have value so the products will automatically
forwarded to a reconditioning facility. The remanufactured or refurbished products are sold in
secondary markers through broker specializing in selling used electronics.

For product older than 4 years old will determine if still contain some value it will go to the
reconditioning facility if not they will be recycled to produce new products and the dítributor will sell
them in the market. And with the packaging of the recycled products, Dell’s have some partner like
FIT who will collect the used packaging. Then recycle and reuse material for new packaging.

Beside that, with the EOL-products (end of life product), Dell have the program called “Consumer
Free Recycling”. Dell started the program to help its customers to recycle their IT-equipment in an
environmentally friendly manner and the program aims to make it easier for consumers to turn in
their EOL-products. The customer have to had a pre-paid waybill (customer pay for transportation
fee) to return their EOL-product for recycling. But with the companies, Dell has the program called
“Asset Resale and Recycling”. By law, Dell just need to pay for recycling fees and don’t need to pay
for transportation cost. These event just conducted in some countries which have less
environmentally aware.

Dell is also a member of producer compliance schemes. This is a organization within the consumer
electronic industry, which aims to help its members recycle product andsell the material. Dell wwork
with El-kretsen who collaborating with recycling stations all over Sweden and picks up IT-equipment
that has been tunred in by consumers, recycle and then resell it. And other partner of Dell is FTI who
will collect the old packaging and recycle the material and reuse it for new packing.

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