To reduce the environmental impact of external packaging by IBM and our suppliers, the ISC’s Sustainability Team in Dublin reviewed the volume of external Packaging being shipped into IBM from Suppliers. An initiative called the ‘Inbound Packaging Project’ was established to work with suppliers, at both local and global levels.The objective of the project being to minimize the volume of solid waste received from vendors whilst still ensuring the quality of the products shipped.
An additional goal was to reduce the cost of parts coming from suppliers by increasing packaging efficiency and in turn to help our suppliers to improve their supply chain. In May 2008 IBM Dublin implemented the Inbound Packaging project. Team members consisted of employees from Manufacturing, Engineering and Procurement. The team assessed current supplier packaging with a view to increasing the density of part per box/pallet. The team bench-marked supplier packaging of similar products for a best in class view. Another brief was to reduce and/or eliminate the actual packaging volume being used by each supplier on their associated part.
A Total of 64 Opportunities were identified in Dublin. These yielded a combination of reductions in packaging waste and in costs paid by IBM, shared reductions in costs paid by the supplier, reduction of storage and handling at supplier facilities and a positive impact on the environment. This project has had significant beneficial impacts on supplier relationships, environmental impacts and the piece part cost. The expectation is that we will partner again on new innovative packaging projects with our suppliers who will be encouraged to approach us with new design ideas and process improvements.
Since implementing this project IBM has eliminated over 341 Metric Tonnes of Solid waste from its Supply chain which is a direct result of this project and cost savings of over $3.9Million (2007-2008). IBM Dublin eliminated 38.1metric tonnes locally with cost Savings of $31K in the last 6 months. This project reinforces IBM as an environmental leader, and has encouraged collaboration and innovative thinking between our suppliers. By collaborating with and encouraging our suppliers to be innovative, IBM has been able to pass on the benefits of this project to all of our manufacturing sites.
L-R: Gordon Carson, Business Development Director, Resource; Ian Talbot, Chambers Ireland Chief Executive; Roisín Brennan, IBM ISC Global Supply Packaging GCM, John Curran, Minister of State, T.D.