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Manufacturing
Dell’s supply chain is kept lean and mean. With a very tight inventory management
philosophy, Dell builds its computers largely to order. This allows Dell to offer a larger
catalog of product, while not necessarily having all that equipment preconfigured and
waiting for a buyer.

Designing for the Environment
Dell has met the requirements of the European Union’s restriction on the use of hazardous
substances (the RoHS directive) globally. Dell changed its chemical use policy by committing
to eliminate the use of brominated flame retardants and polyvinyl chloride from product
designs by 2009.
Though Dell is a tech company, it still uses paper. To reduce impact there, Dell
developed its Forest Products Stewardship program. Dell’s marketing publications use on
average 50 percent recycled content paper, meeting its 2009 goals 3 years early.

NOTE For more information about RoHS and other official directives for environmentally friendly
electronics, flip back to Chapter 2.
Energy Smart
Dell has its own certification for eco-friendly equipment—Energy Smart. Dell Energy Smart
combines energy-optimized hardware and software, energy-optimized professional
services, and partnerships with regulatory bodies and standards organizations to help drive
future innovation around energy-efficient products.
Dell’s Energy Smart workstations, desktops, and notebooks can reduce power
consumption by as much as 78 percent. That reduction, as we’ve said before, helps the
environment as well as your bottom line.
Figure 9-2 shows the Energy Smart calculator.
As an example of Energy Smart savings, a server may cost about $100 more up front; PART IV
however, it can save $200 each year in energy costs. Information about Dell’s Energy Smart
program can be found at Link 9-2.

Transportation
It isn’t just what goes on behind Dell’s front door that is making an impact. The company
has also retooled its transportation operations to cut costs. Dell has undertaken several
measures to lessen its greenhouse gas emissions:

• SmartWay initiative Carriers are encouraged to follow the Environmental
Protection Agency’s (EPA’s) SmartWay initiative, in which shippers and
transportation companies work in concert to develop the most efficient methods to
save fuel and reduce emissions.
• Head’s up to customers When a product is shipped to a customer, Dell sends out
a notification so that the customer will be available to receive it. This reduces
the number of times the delivery van has to drive to a customer.
• Consolidated shipping Dell instituted its less than truckload (LTL) Direct program
to reduce the number of miles driven. Trailers were refitted with metal beams so that
products could be double stacked. Airbags were positioned in the trailer to cushion
the load.