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IBM Takes Steps To Make Supply Chains More Eco-Friendly
By Christopher P. Sciacca
Expert Author
Article Date: 2009-07-24
From polluting the environment to creating sweat shops, poorly managed supply chains can tarnish the reputation of any company - not only that it makes good business sense. Many global corporations realize this, which is why they have been so progressive in maintaining supply chains that hold themselves accountable for everything from the labor they employ to the eco-friendliness of the parts they use and many actually report on their progress and efforts.
Doing its part, IBM has just released it's corporate responsibility report for 2008 and it dedicates a big part of it to its supply chain. Here are a few highlights from page 32 "Supply Chain Responsibility: A commitment to collaboration":
- During 2008, IBM continued to implement its Supply Chain Social Responsibility initiative across its global network of suppliers. By the end of 2008, we had completed a cumulative total of 553 initial audits; including expansion into three additional growth market countries (36 initial audits): Argentina, Malaysia and Vietnam.
- In 2008, IBM spent $1.5 billion inside the U.S. and $745 million internationally with first-tier diverse suppliers
- In 2008, IBM's PELM operations worldwide processed 42,302 metric tons of end-of-life products and product waste. These PELM operations reused or recycled 96.9 percent of the total amount processed and sent only 0.6 percent to landfills or to incineration facilities for treatment, versus IBM's corporate goal of minimizing its combined landfill and incineration rate to no more than 3 percent.
While the survey's that IBM has conducted with it's suppliers prove that more work needs to be done, I couldn't imagine having a supply chain that didn't take on this challenge. Having $38 billion in spend, as IBM does, gives a company a lot of purchasing power to encourage suppliers to adopt standards and practices that in many established countries are taken for granted. But again it's not just because IBM wants to be a "good-doer" as stated in the report, these efforts will "result in higher quality goods and services for our customers."
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About the Author:
Christopher P. Sciacca is located in Brno, Czech Republic where he is the
manager of strategic communications for Europe and Africa for IBM's global
delivery business. His responsibilities include helping global delivery
employees across Europe and Africa understand IBM's strategy and how they
contribute to it. He is also introducing the latest in Web 2.0
technologies including virtual worlds and social networks to employees to
help them make connections that count globally. He is also responsible for
external communications, where he works with members of the press,
academia, government officials and analysts to help them understand IBM's
strategy of becoming a globally integrated company.
He currently keeps an acclaimed and widely read blog called "Why supply chains rock?",
which takes a simple, yet entertaining look at the impact of supply chains
on daily life.
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