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Product Stewardship:
 Reversing the Flow


              Leo Raudys
  Best Buy Environmental Sustainability
         Environmental Initiative
              October 2011
Product Stewardship Cycle


                           Manufacturing

         Material
         Sourcing                          Distribution
                                            Logistics
                        Market our
                    leadership position
    Product
                      throughout the
    Design              value chain                Sales
                                                   Retail


              Recycling,
              Recovery            Use, Services,
                                     Repair
Electronic Waste in the U.S.

In 2009:

 Total U.S. E-Waste: Over 6 billion pounds

 Disposal: > 80%

 Recycling: < 20%
Business Drivers


 Huge customer pain point

 Ewaste is a growing concern and a focus area for
  governments and NGO’s

 Optimizing reverse flow of product is increasingly
  important to the long-term success of Best Buy
Challenges

 Understanding customer motivators is extremely
  hard

 Variability in commodities markets creates
  uncertainty

 Value chain accountability allows little room for
  error
Closing The Loop

        Best Buy’s Recycling Goal

Best Buy pledges to collect 1
billion pounds of consumer
goods for recycling.
• Collected more than 140 million
  pounds in first year of
  operation, 156 million pounds in
  the second
• Collect over 387 pounds of
  ewaste every minute we’re open
                                     Times Square – April 2010

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Raudys - Product Stewardship: Reversing the Flow

  • 1. Product Stewardship: Reversing the Flow Leo Raudys Best Buy Environmental Sustainability Environmental Initiative October 2011
  • 2. Product Stewardship Cycle Manufacturing Material Sourcing Distribution Logistics Market our leadership position Product throughout the Design value chain Sales Retail Recycling, Recovery Use, Services, Repair
  • 3. Electronic Waste in the U.S. In 2009:  Total U.S. E-Waste: Over 6 billion pounds  Disposal: > 80%  Recycling: < 20%
  • 4. Business Drivers  Huge customer pain point  Ewaste is a growing concern and a focus area for governments and NGO’s  Optimizing reverse flow of product is increasingly important to the long-term success of Best Buy
  • 5. Challenges  Understanding customer motivators is extremely hard  Variability in commodities markets creates uncertainty  Value chain accountability allows little room for error
  • 6. Closing The Loop Best Buy’s Recycling Goal Best Buy pledges to collect 1 billion pounds of consumer goods for recycling. • Collected more than 140 million pounds in first year of operation, 156 million pounds in the second • Collect over 387 pounds of ewaste every minute we’re open Times Square – April 2010