Depiction of the sustainable supply chain of xerox

1. SUSTAINABLE SUPPLY CHAIN
SUPPLY CHAIN COE SUBMISSION
Under the guidance of Prof.Amandeep Singh Grover
SUBMITTED BY:
RITUPARNA NEOG (24),
Xerox present headquarter
Norwalk, Connecticut, US.
SURABHI SAVITA (33),
NIFT-MFM,
NEW DELHI

2. Introduction
 Large global company: Financial
services & Document Processing
 Products marketed in over 130
countries
 Direct sales force: 15,000 (dealers,
distributors & agents
 30, 000 technicians employed for
after sales services.
 22 manufacturing facilities in
Europe, N & S America and in Far
East.
 Its “Ready for Real Business “
campaign emphasizes that Xerox
will drive “Non Core Business
Processes” allowing its clients to
focus only on ‘ real ’ business
operations

3. Xerox –at a glance
 Founded in 1906, Rochester, NY, US.
headquartered in Norwalk, Connecticut (moved from
Stamford, Connecticut in October 2007..
PARC founded in 1970.
 Incorporated in 2002 as an independent centre.
Fuji Xerox was established in 1962 as a 50:50
partnership with Rank Xerox.
PRESENT
Key people -Ursula Burns, CEO
-Anne M. Mulcahy, Chairman
Employees 53,600 (2009)
9,400+ patents(2009)
$880 million spent on R&D (2009)
Xerox locations-160 countries.
On September 28, 2009, Xerox announced the intended
acquisition of Affiliated Computer Services for $6.4
billion.

4. Organisat

5. Xerox- Strategy to Win
Execute on growth
Capitalize on market opportunities
initiatives
Expand
Leverage distribution investment
distribution
Secure future
Build on Xerox heritage of
Technology innovation
leadership
Optimize productivity Drive cost reductions & margin
& infrastructure. Improvement.

6. Segment Offerings

7. Mission & Goals
MISSION
To develop, manufacture, market and service a broad range of document
processing products including large scale electronic
printers,duplicators,copiers,work stations, engineering
products, telecopiers and supply associated with those products.
GOALS
 Customer satisfaction
 Return on assets
 Market Share
 Employee Satisfaction

8. Industries it
serves
Energy
Financial Services
Government
Health Care
Higher Education
High Tech and
Communications
Insurance
Manufacturing
Retail and Consumer Products
Shipping and Logistics
Transportation
Travel

9. Inventory Performance
30
25
Inventory Performance
20
15
10
5
0
Average Firms

10. Route Map
Logistics customer
satisfaction
20% inventory
100 %
11% Logistics cost
% of revenue
10%
7%
?
1989 1990 1991 1992 1993
Unit Process Optimization
Cross-organizational process Change
Change Agents

11. Strategic Partnership- ‘Close the Loop’
•In late 2010, Xerox partnered with Close the Loop, one of the world's largest
recyclers of imaging supplies that specializes in cartridge returns.
•Close the Loop collects U.S. customers’ returns and manages the recycling on
behalf of Xerox using a patented material separation process that recovers used
materials for reuse in new printer cartridges and other products.
•These processes enable virtually all material returned through the program to be
beneficially managed.
•This partnership both simplifies the returns process for customers and also allows
more of the return stream to be recycled into useful products.

12. Features of Closed loop supply chain
• Closed-loop supply chain: supply chains that are designed to consider the
processes required for returns of products, in addition to the traditional
forward processes.
• These additional processes (also referred to as the reverse supply chain)
are:
• Product acquisition: the task of retrieving the used product. This is a key
to creating a profitable closed-loop supply chain.
• Reverse logistics: the process of planning, implementing, and controlling
the efficient, effective inbound flow and storage of secondary goods and
related information opposite to the traditional supply chain direction for
the purpose of recovering value or proper disposal.
• Test, sort and disposition: testing and sorting the returns and disposition
refers to how a product is disposed of, e.g. sold to a broker, sold to an
outlet, sent to landfill, etc.
– Refurbish: similar to reconditioning but requires more work to repair the
product.
– Selling and redistribution.

13. A closed loop supply chain of
Xerox
New Assets
Acquire
Recovery
and repair
New
1.2 billion $ Build
Logistics Remain
Asset strip cost
Distribute
Removal
Deliver

14. A closed loop supply chain of
Xerox
New Assets
Acquire
Recovery
and repair
New
1.2 billion $ Build
Logistics Remain
Asset strip cost
Distribute
Removal
Deliver

15. Manufacturing & Supply
• The company’s largest manufacturing site is in Webster, NY, where they
produce fusers, photoreceptors, Xerox iGen and Nuvera®
systems, components, consumables and other products.
• They also have EA Toner plant located in Webster.
• They have a facility in Venray, Netherlands, which handles supplies
manufacturing and supply chain management for the Eastern Hemisphere
• Master supply agreement with Flextronics, a global electronics
manufacturing services company, to outsource portions of manufacturing
for Mid-range and Entry businesses, continues through 2014.
• They also acquire products from various third parties in order to increase
the breadth of product portfolio and meet channel requirements.

16. Inventory management and logistics
process vision
 Customer satisfaction is the key
 Demand driven supply chain
 Time to customer is a competitive advantage
 Common product language
 Complexity managed through high performance work systems
 Recycling is key

17. Order Satisfaction/ Delivery Management
 Shared ownership of orders
 Plan for order satisfaction
 Information availability exchange for inventory
 Same day delivery capability
 100% build to order on high end

18. Configuration (Asset Information)
Management
 One logical data base, SAP
 Co-ordinated, multifunctional, multinational, configuration
management
 Rapid communication of configuration information

19. Inventory Planning
One Company
Service level- driven stocking
Demand- driven forecasting

20. Logistics & Physical
Distribution Planning
 One company, one integrated supply chain
 Networks optimize customer satisfaction at lowest cost &
inventory
 Plan networks as a continuum from customer to supplier

21. Logistics Operation
Manage flow not stock
Plan the work
Integrate warehousing and transport
Same day delivery capability

22. WASTE PREVENTION AND MANAGEMENT

23. Waste Prevention & Management
Design products, packaging and supplies that make efficient
WASTE FREE use of resources, minimize waste, reuse material where
GOAL feasible and recycle what can’t be reused
• Xerox’s Green World Alliance initiative provides a collection and
reuse/recycling program for spent imaging supplies.
• Xerox’s Product Takeback and Recycling program manages equipment at end
of life.
• Xerox is investing in technologies that reduce the creation of waste.
• Example:
– The solid ink imaging process utilizes compact “cartridge-free” solid ink
sticks with no plastic housings or casings, thereby reducing print-related
waste by up to 90% compared with comparable color laser products.

24. Waste Prevention & Management
Central to the commitment to waste-free
Green World Alliance Reuse program
products
Total Waste Diverted from Landfills from
• This partnership with Xerox customers Cartridges, Bottles and Waste Toner through
resulted in more than 3.4 million Reuse/Recycle
cartridges, toner containers and other
used supply items being returned in 2010.
• Eco-Box returns allow the customer to
order free bundles of Eco Boxes that hold
from five to 12 cartridges per
return, depending on the size of the item.
• Xerox continues to monitor global
customer feedback and industry best
practices to stay on the path of continuous
improvement.

25. Waste Prevention & Management
Well-Established Collecting and Reprocessing Methods
Xerox customers have three options for returning spent consumables to Xerox for
reuse and recycling at no charge:
Individual unit
Eco Box
returns for Pallet returns.
program
sale
• Returned products are sorted, and items suitable for remanufacturing
are cleaned, inspected and then remanufactured.
• Those which cannot be remanufactured are recycled.
• Remanufactured cartridges, containing an average of 90%
reused/recycled parts, are built and tested to the same performance
specifications as new products.

26. Waste Prevention & Management
Product Take-Back and Recycling
• Xerox enables reuse according to the following hierarchy:
– Reuse of complete end item as used or new, depending on the condition of the
machine. This requires the least reprocessing, transportation and energy usage.
– Remanufacturing or conversion into a newer-generation product or part Nearly 40% of
machines returned in the U.S. are sent for remanufacturing of some sort.
– Reuse of major modules, subcomponents, and parts for spares or manufacturing. In
2010, almost 200,000 parts were stripped off of used machines and sent back out to the
field for reuse either in manufacturing or as repair parts.
– Material recycling. Any remaining portion of a machine after the above processes have
been followed is stripped of any recyclable material (e.g., plastics, copper wire) and
material requiring special disposal services, such as PWBs, batteries and lamps. The
remainder of the machine is then crushed and sent to a scrap metal reclaim facility.

27. Waste Prevention & Management
Waste Diverted from Landfills through
Remanufacture and Parts Reuse
E-Waste
•Xerox continues to operate its European
take-back program to enable equipment
remanufacturing and parts reuse
• A waste vendor approval process assesses
the safety and environmental practices as well
as compliance history of each vendor.
•Xerox does not allow its vendors to send
electronic scrap to developing nations for
processing.

28. Process Flow

29. Xerox –green supply chain
In 1991, the Xerox Corporation set a goal for the company to
become waste-free.
• Xerox cites a number of benefits of
a waste-free company:
• financial,
• competitive advantage,
• compliance
• legislative regulation,
• meeting customer requirements.
Proactive leadership is Xerox’s stated goal in its environmental programs.
All Xerox products are required, at a minimum, to comply with government
standards and meet Xerox’s internal environmental standards.
 Internal standards are frequently more stringent than existing legislative
requirements.

30. Process Flow
Process flows
comprises of:
•Forward Flow
•Reverse Flow
•Remanufactured
Flows

31. Product recovery process
• The product recovery process is as follows:
1) Products are collected from Xerox customers and returned to one of
centralized logistic return centers.
• Reverse flows represent the movement of goods from the end-user
to Xerox for disposition and reuse.
2) Remanufactured flows are the movement of remanufactured goods from
Xerox to customers.
• The customers for remanufactured products are often not the same
customers as for new equipment.
• The flow of remanufactured goods is a forward flow of
materials, not a reverse flow.

32. Product categorization for reuse
• Returned units are inspected and assigned to one of four graded categories. These
categories represent the most economically attractive use of the returned product.
The grades are the basis for the reuse alternative .
• Category 1 products are virtually unused machines requiring only minor servicing.
• Category 2 machines are in good condition. These machines require parts and
components to be replaced during the remanufacturing process.
• Category 3 machines are in good condition, but not economically fit for
remanufacturing. Therefore, parts and components are stripped off the frame of
the machine and enter the reused parts inventories.
• Machines are classified as category 2 or 3 based, in part, on the demand for
remanufactured machine and the levels of reused parts inventories.
• Category 4 machines are economically fit only for materials recycling.
• The categorization decision is based on
a variety of factors including:
– the overall condition of the machine,
– the age of the machine,
– the demand for reused parts, and
– current inventory levels of reused parts.

33. Results
 Greater visibility and more accurate data in the spare parts supply chain, allowing
Xerox to improve the planning process and overall efficiency across its network
 Improved supply chain reliability and responsiveness, enabling Xerox to maintain its
service commitments to customers.
 New process-driven, results-oriented management and the attainment of significant
cost savings.
Substantial savings across the supply chain:
Transportation 16%
Warehouse 12%
Supply Chain 3%
Total 15%

34. Key Differentiators
Unit Process optimization: multi cross functional
team
Process vision: IM & L
Process improvements in process: Cross
functionality giving flexibility
Management of Change:
 Convince people
 Converting understanding into positive perception
 Take the ownership and make people understand it’s the only way

35. Issues related to Reassemble-to-Order Process
The key dimensions in aggregate planning for a Reassemble-to-Order environment are :
• Xerox Europe reported a total of 116,308 copiers returned in 1999. The majority of these
units were returned from lease agreements.
• The quality of these returns is difficult to predict, because not only are copiers complex but
the condition of a photocopier is dependent on the intensity of its use and its age.
• Through the use of the nominal grading system , Xerox is able to determine the most
economic use of a copier—after the condition of the copier has been determined.
• The use of Signature Analysis profiles aid the examiner in determining the reusability of a
component.
• The complexity of the remanufacturing processes is directly related to not only the number
of part and components, but also the number of operations required to return each
component to usable status..

36. Issues related to Reassemble-to-Order
Process
• Xerox tracks leases to enable the forecasting of the rate of product
returns.
• Product returns from leasing, for non-OEM remanufacturers, represent
less than 5% of total returns.
• Consequently, forecasting product returns is difficult due to the
uncertainty associated with non-leasing returns.
• Matching return rates and sales rates is difficult. The volume of returns in
the case of value-added remanufacturing is significantly less than for
container reuse.
• Marketing is more complex for the remanufactured products, since
customers may require significant education and assurances to convince
them to purchase remanufactured products.

37. Managerial Concerns and Needs
• Xerox Europe does not make remanufactured copiers to stock and have chosen to reassemble the required
components and parts per each customer order.
• Managers in a Reassemble-to-Order (RATO) environment have greater information needs, since the
products, testing, and remanufacturing processes are significantly more complex than in a
Remanufacture-to-Stock (RMTS) environment.
• Further, these products are more expensive; therefore units awaiting disposition and inventoried
components may represent a sizable investment. There may be multiple economic uses for a
remanufactured component (e.g. spare or on a remanufactured unit), so inventory planning must take
this into account.
• The management of remanufacturing product and components must take into account the life cycle of the
product in the field (likely demand for spare parts and consumables) and the market life cycle (likely
demand for product in the future).
• A successful production planning system must be capable of coping with the inherent complexities in this
type of an environment. A disposal policy to balance supply and demand is an obvious concern.
• Xerox continues to expand its consumable return programs. Most recently, a new program called the
Green World Alliance is expected to increase worldwide return rates for retail and office products’
supplies.
• The anticipated growth in product returns makes the development of formal planning systems crucial to
ensure that product reuse programs continue to be value-added activities for Xerox.

38. Key concerns
 Design and implement a supply chain solution that
minimizes the impact of significant operational constraints
 Standardize and modernize its spare parts supply chain
with new business processes, systems and automation
 Maintain current service levels to its customers through the
transition phase
 Build a continuous improvement culture that strives to
increase supply chain efficiency
 Reduce operating costs

39. Solution
 Exel placed a supply chain management (SCM) consulting
team in the Xerox organization
 Closing three regional centres and transferring operations to
two existing locations
 Redesigning the two existing locations to manage increased
product flow
 Integrating all systems and processes across the network
 Implementing new warehouse and transportation
management systems

40. Sources
• www.trinity.edu
• www.personal.psu.edu
• www.xerox.com
• www.xerox.com/gwa.