Cisco Sustainable Packaging Update

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  • 1. Cisco at a Glance  Worldwide leader in networking Broad range of products for the Internet and solutions:  Headquartered in San Jose, CA  Networking Systems  Data Center  More than 67,000 employees  Collaboration, Voice and Video in 75 Countries  Mobility/Wireless  $36.1B FY’09 revenue  Security © 2009 Cisco Systems, Inc. All rights reserved. 1
  • 2. Customer Value Chain Management: A Global Presence Mission Team By the Numbers Provide an unrivaled,  ~8,000 employees*  >1,000 suppliers end-to-end experience  90+ locations / 32  4 contract to our customers countries manufacturing partners  9 functional groups  95% of manufacturing is outsourced *includes Scientific Atlanta and Linksys © 2009 Cisco Systems, Inc. All rights reserved. 2
  • 3. Cisco’s Complex Value Chain Hybrid Wide Range Most Breadth of Acquisition Production of Products Products Customers Integration Model Are (133 to date) (95% Configured Outsourced) to Order © 2009 Cisco Systems, Inc. All rights reserved. 3
  • 4. Sustainable Value Chain Management: Action Plan Design &  Power Efficiency in Design Evolve Products  Transition to/Design with Lead-Free Solder  Materials Management: Controlled Substances Specification Source &  Ozone Depleting Substances Program Manufacture  Comprehensive Worldwide Battery Specification  Recyclable Packaging Materials Package &  Packaging Design Efficiency Transport  Volume/Weight  =  Transport =  Carbon Emissions Reverse  Accessory Election =  duplication =  Cust. Sat. Logistics  Waste  via reuse & refurbishment © 2009 Cisco Systems, Inc. All rights reserved. 4
  • 5. Collaborating on Sustainability: Optics Module Packaging Innovation Eng. Team Doc Team Pkg. Team Collaborative Technical Document Packaging Approach Spec Reduction Reduction Eco-conscious Design with Reduced OLD NEW Costs © 2009 Cisco Systems, Inc. All rights reserved. 5
  • 6. Collaboration on Sustainability: Responding to Customer Feedback Goal Volume Reduction & Customer Satisfaction Target Packaging at the Design Stage!  Phase I:  size of anti-static & doc. bags & boxes; green Plan for bag material Success Note: to date with 1 family of products  Phase 1: 2-2.5M/year  Plastic cut 50% (56k lbs); 33,429 lbs. of ESD bag waste  Savings recyclable material  Chargeable weight reduced ~ 60% ( transport savings) © 2009 Cisco Systems, Inc. All rights reserved. 6
  • 7. Collaboration on Sustainability: Responding to Customer Feedback Before After © 2009 Cisco Systems, Inc. All rights reserved. 7
  • 8. Sustainable Packaging Design: Improving Efficiency Goal Volume Reduction & Transport Efficiency Reconfiguring Product Packing  Maximize carton capacity Plan for e.g.: Use of multi-packs Success Innovative pre-installation of components  $1.82 M/year Savings  31,260 lbs. carton material eliminated  Equivalent of 32 transport containers eliminated © 2009 Cisco Systems, Inc. All rights reserved. 8
  • 9. TelePresence CTS-3000 Example New Design:  9 containers vs. 83 cartons  Stackable  9 per truck vs. 2 per truck © 2009 Cisco Systems, Inc. All rights reserved. 9
  • 10. CRS Ship Configured: $2M savings OLD MODEL Containerize Packaged Cards Build & Test Depopulate Cards Package All Cards NEW MODEL Build & Test Depopulate Cards Package All Cards © 2009 Cisco Systems, Inc. All rights reserved. 10
  • 11. Sustainable Package Design: Minimizing Documentation Goal Waste Reduction & Manufacturing Efficiency Meet regulatory disclosure requirements while reducing environmental impact to the greatest extent possible  Migrate from paper to CD – Spring 2007 Plan for  Optically reduce size of all documents 65% or more 8.5X11 Success becomes 5.X7.55 – Fall 2008  Move to “pointer docs” – January 2009  FY09 Savings  1.8 billion sheets of paper Savings  53 million lbs. CO2 eliminated  200 million gallons waste water eliminated  17 million lbs. solid waste eliminated © 2009 Cisco Systems, Inc. All rights reserved. 11
  • 12. Sustainable Package Design: Minimizing Documentation Before After Coordinated Carton & Document reduction! © 2009 Cisco Systems, Inc. All rights reserved. 12
  • 13. Sustainable Packaging Design: End Cap Materials Goal Volume Reduction & Materials Management Replace Virgin Foam (petroleum based) with previously used, 100% recycled plastic Plan for  Introduced on 8xx series product Success  Other Products to follow  Change @ 3 sites saves 50 cubic meters/mo. per site Savings  Annualized savings = $765k (transport cost) © 2009 Cisco Systems, Inc. All rights reserved. 13
  • 14. Sustainable Packaging Design: End Cap Materials Before After © 2009 Cisco Systems, Inc. All rights reserved. 14