Milk jugs, Mushrooms, and Bamboo – Sustainability in Dell’s global supply chain

 

Although Dell has built an impeccable reputation based on their direct supply chain management model, they also are a global leader in responsible environmental practices.  This is demonstrated by their cutting-edge adoption of various green packaging components.  Dell has had great success in providing a more sustainable supply chain by using eco-friendly materials like recycled milk jugs, mushroom fillers, and bamboo packaging.

In 2011, Dell was ranked #5 nationally and #25 globally in Newsweek’s ranking of Greenest Companies in America. One of the contributing factors to this success is their very innovative use of 100% recyclable plastics like milk jugs and used detergent bottles. Dell has integrated the use of high-density polyethylene that is made from 100% recycled materials like these. In fact, Dell has used enough milk jugs in its packaging to cover the entire length of the United States. The company has an aggressive goal to increase their use of recycled materials in their packaging to 40% in 2012 and is currently on track to meet its goal of 99% recycling and reuse in 2012.

Other highlights of Dell’s green supply chain activities includes the use of sustainable materials like mushrooms to provide cushioning in their packaging materials. Mushroom based materials that are grown provide a biodegradable alternative to manufactured products that have been used in the past. Dell is using the fungus produced by bioscience to help cushion and ship its heavier product like computer servers and desktop machines. The final creation is similar in form to Styrofoam but is a completely organic product that is created using common agricultural waste products. The development of this type of packaging also requires less energy to produce since the only energy used is that which is needed for natural growth. In addition, this has the added agricultural benefit of being fully useful for composting back into the earth.

Another example of a packaging source that is grown and not man-made is Dell’s revolutionary use of bamboo packaging. Dell has been steadily replacing its use of plastic packaging with bamboo solutions for several years now. This highly renewable source of packaging is also completely biodegradable and does not contain the toxin found in oil-based plastic materials.  Bamboo is also very durable and provides the strength needed in the packing of Dell’s smartphones, laptops, and other computer devices. This lightweight material has allowed Dell to reduce the size of their packaging materials and along with other agricultural products is something the company plans to expand in the future.

As a result of these innovations, Dell has drastically reduced both their carbon footprint and lowered their overall energy consumption. By adopting a culture of corporate responsibility and focusing on sustainable operations, Dell is leading in the development of a greener and more environmentally responsible global supply chain. Through such supply chain innovations like the use of recycled milk jugs, mushroom fillers, and bamboo packaging, Dell has truly set the gold standard for what a green supply chain should be.

References

Dell (2011). http://content.dell.com/us/en/corp/d/corp-comm/newsweek-dell.aspx?c=us&l=en&s=corp&preview=true

http://i.dell.com/sites/content/corporate/corp-comm/en/Documents/dell-fy10-cr-report.pdf

America’s New Energy Job Boom

America’s shale oil and natural gas industries could lead to massive job growth in this country and produce millions of jobs over the next decade. Just ask the folks from North Dakota where once sleepy, rural towns are now experiencing a job boom reminiscent of the gold rush days of the 1800s. Not only is unemployment the lowest in the country at 3%, the average oil and gas salary in North Dakota is $90,000 a year and people in fast food restaurants are making $20 dollars an hour.

States such as North Dakota, Pennsylvania, and Ohio are using new hydraulic fracturing or “fracking” technologies to extract natural gas from deep under thousands of feet of shale rock. Fracking is one of the most remarkable breakthroughs in the energy exploration business in the last 50 years. It not only has reduced America’s foreign oil consumption from 60% in 2005 to 47% in 2010 and made the U.S. the largest natural gas producer in the world. The natural gas and oil sector has created over 1.5 million jobs since that time. In addition, recent analysis by PriceWaterhouseCoopers states that more than 1 million jobs could be produced in the manufacturing industry alone by 2025 to support the demand to produce the equipment used to extract the gas. This does not even include the service and construction jobs that will be produced to support these workers and industries.

Could states like North Dakota lead the country to increased prosperity and keep the economy out of another recession? North Dakota is among the five fastest growing states in terms of percent increase – along with Texas, Utah, Alaska, and Colorado. All of these states have strong job growth and are experiencing energy booms. Significant economic investment in shale industries is also occurring in other states that have large natural gas reserves. The Marcellus Shale formation which runs through from southern New York through Pennsylvania and into parts of West Virginia and Maryland is believed to be the second largest natural gas deposit in the world and could be produce huge economic returns. These could mean thousands of high paying jobs over the next couple of years.

In addition to driving job creation, shale gas recovery can be the game-changer to the U.S. becoming more energy independent and result in lower energy costs to American consumers. In fact, the U.S. has now become a net exporter of fuel for the first time in nearly 20 years. There are however several factors that could hinder this new energy development; these include regulatory obstacles, environmental concerns, and increased government intervention.

As with any boom, there are potential problems and the jury is still out on the health risks as a result of all this new drilling. Protests of hydraulic fracturing drilling have sprung up throughout the country. These are mostly in response to concerns over the environmental impact in the communities where fracking is largely taking place, such as Pennsylvania and Ohio. The largest concern is on the potential to impact local drinking supplies. The risk is that the chemicals used in the fracking process will flow back into the local aquifers and contaminate the drinking water. Other concerns are on the impact to the landscapes and the air quality where the drilling is occurring. This type of new drilling does leave a footprint and can impact local ecosystems. There will continue to be vigorous debate regarding these matters going forward; nevertheless, the prospective job growth from shale oil and gas exploration in this country is undeniable. Could the country’s next gold rush be upon us?

What the heck is Fracking and what does it mean to the U.S?

A recent article in the Wall Street Journal, “How America can escape the Energy Trap” by Mortimer Zuckerman, November 25, 2011 gives a great explanation of just what the heck “fracking” is and how it is impacting the energy need of the United States. Hydraulic fracturing or “fracking” is a method of using newly developed drilling technologies using water, sand, and chemicals to extract natural gas from deep under the earth through thousands of feet of shale rock. It is one of the most remarkable breakthroughs in the energy exploration business in the last 50 years and has reduced America’s foreign oil consumption from 60% in 2005 to 47% in 2010. As a result, the U.S. is now the largest natural gas producer in the world, recently surpassing Russia for the top spot. However this new remarkable shift has not come without it’s share of controversy.

Protests of hydraulic fracturing drilling have sprung up throughout the country. These are mostly in response to concerns over the environmental impact in the communities where fracking is largely taking place, such as Pennsylvania and Ohio. The largest concern is on the potential to impact local drinking supplies. The risk is that the chemicals used in the fracking process will flow back into the local aquifers and contaminate the drinking water. Other concerns are on the impact to the landscapes and the air quality where the drilling is occurring. This type of new drilling does leave a footprint and can impact local ecosystems. There will continue to be a delicate balancing act between the free market rights of natural gas producers and concerns of citizens impacted by those rights.

I expect Americans will hear more about “fracking” in the future and there will be quite a bit of misinformation out there. Done responsibly, fracking can have a positive impact on both the cost of energy and the environment.  Natural gas can be a clean substitute from other dirtier energy sources such as coal and oil and greatly reduce the emissions of greenhouse gases. Unfortunately, any significant production of energy will have an environmental impact of which there are several legitimate concerns. The battle will go on and “fracking” will continue to impact the energy use of the U.S. Whether or not this will be a positive impact is still up for debate.

50 million Smart Meters by 2012

50 million Smart Meters by 2012.

America’s Smart Power Grid

http://www.kavaliro.com/america%E2%80%99s-smart-power-grid-bringing-power-into-the-digital-age

50 million Smart Meters by 2012

Lost in all the debate about failed “green” energy companies like Solyndra, is the tremendous success and technical promise of other clean energy technologies, such as smart metering. President Obama made a campaign promise to deploy 40 million smart meters during his first term in office. It now looks like there could be over 50 million smart meters installed in this country by the end of 2012. Smart meters are a crucial component of the Smart Grid and the building block from which to bridge the gap between the energy provider and the end consumer.

According to the U.S. Department of Energy, Smart Grid technologies “will be a critical long-term component of a more interactive, robust, and efficient electricity generation, transmission and usage system. Moreover, the advanced, state-of-the-art electrical grid that these technologies will create will be an important component of an overall national energy, economic, and security strategy.” Despite such strong backing from the DOE and over 4.3 billion in funding that that was specifically allocated for smart grid technology investments in the American Recovery and Reinvestment Act of 2009 stimulus package, the benefits of smart metering is still widely misunderstood by the majority of Americans. Hopefully that will soon change and the general public will come to have a better understanding of both the capabilities and benefits that smart meters can bring.

Consumers now have more control over their energy use than ever before. Smart meters give an electric, gas, or water customer the ability to monitor their energy use and make adjustments accordingly. With the ever expanding reach of smart phones and mobile apps, users will soon be able to easily control how and when they use energy and become more energy efficient as a result. This new capability will also allow users to control their energy consumption. Future energy consumption shifts could come from such sources as solar collectors, which someone might install on their roof and sell the excess capacity back to a utility. Another consumption shift could be from electric plug-in vehicles that require a meter capable of tiered billing so as to encourage consumption during off-peak hours and not overload the grid during peak demand times.

Unfortunately, smart meters do not come without controversy. Government officials  in several states have spoken out in opposition to the cost vs. benefit to the consumer. California has gone so far as to consider banning smart meters in some areas due to perceived health concerns from exposure to radiation. Consumer education in this area will be critical and utilities must do a better job in getting a positive message across.

The demand and costs for energy will continue to grow throughout the U.S and the rest of the world. Although 50 million smart meters is a significant step towards implementing a state-of-the-art electric grid , the United States will need to step it up or risk falling behind countries such as China. Expanding the deployment of smart meters would be a good start to becoming the leader in the Smart Grid of the 21^st century.