II. MANAGING THE SUPPLY CHAIN FOR DELL
6.2. Four-element approach to Dell sustainable supply chain with suppliers
Dell tend to focus on building sustainable progress with its worldwide suppliers through acting the mission of continuous improvement by diligence efforts. Besides that, Dell set up its own specific four-elenment that approach to the company audit program.
Four-element approach to Dell sustainable supply chain:
21 1. Risk management 2. Audit
3. Corrective action 4. Capability building
Figure 13: Four-element in Dell sustainability supply chain
FY22 Source: Dell Technologies Report
6.2.1. Risk management
As part of the enrollment process, Dell performs preliminary risk assessments for its suppliers before staring business with Dell.
In the initial stage, the suppliers are required tho fill out a self-assessment questionare (SAQ) that provides detailed information as a standard for Dell to first measure risk level. The criteria involves:
Geographic location: This is crucial to get insight into the related social problems at the national and local level as well as the environmental issue (air pollution, water quality,...).
Commodity: This takes into account certain manufacturing hazards including labor intensity, production procedures, and paints or chemicals used in the process.
Prior instances of responsible manufacutring performance: This covers audit findings from the past and involvement in its attempts to develop capabilities.
Extra insight: This is data that the Dell social and environmental responsibility (SER) team gathers from independent sources, like third- party and regulatory organizations, or from routine factory visits.
The amount Dell spends with the supplier: This shows how much power Dell has over them as well as the scale of their business.
6.2.2. Audit
In terms of the quantity of audits performed and its reach throughout the supply chain, Dell Technologies' audit program is among the biggest in the technology industry. Its goal is to pinpoint supply chain sustainability risks while offering suppliers the tools they need to improve their social responsibility (SER) credentials while also resolving problems. Additionally,
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Dell encompasses its suppliers in focused evaluations and initiatives to provide additional chances for enhancement.
Dell anticipates that the Responsible Business Alliance (RBA) Code of Conduct will be followed by suppliers. Audits support Dell in working with suppliers to take corrective action and enhance their performance by keeping an eye on suppliers' adherence to the RBA Code of Conduct and highlighting any areas of concern.
Figure 14: Improvements in Dell's supplier factory performance, FY22
Source: Dell Technologies Report
Pertaining to the third-party, the RBD-certified auditors. The company supplier audits, which include more than 40 subjects across five areas—
labour (including risks of forced labor, child labor, and nonconformance with
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weekly working hours standards), environment, ethics, and management systems—are carried out by independent, RBA-certified auditors.
6.2.3. Corrective action
The audit results are categorized as priority, major, minor, and risk of nonconformance, ranging from most severe to least severe. Given the seriousness of the findings and priorities, a timely resolution is necessary.An audit finding that the supplier has addressed has to be closed, either by a second audit that is successful or by Dell SER professionals who confirm that the problem has been fixed.
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Figure 15: Dell's corrective actions and findings closed,
FY22
In the event that an audit reveals areas of non-conformance with the Responsible Business Alliance (RBA) Code of Conduct, Dell Social and Environmental Responsibility (SER) specialists collaborates with the supplier to develop a Corrective Action Plan (CAP) that addresses the concerns within the timeframes specified by the RBA. Dell's team helps the supplier find the core reasons and put mitigations in place that promote long-lasting improvement through the CAP.
6.2.4. Capability building
In the strong collaboration relationship with suppliers, Dell ready to provides resources for suppliers, helping their labour to build knowledge and skills in areas such as health, safety and energy efficiency that are proactively contribute to address social and environmental risks. Dell activities for this contribution involves:
Figure 16: Dell's strategy on capability building
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Source: Dell Technologies Report
Factory consultations: This is to better monitor and minimize risk level, Dell's Social and Environmental Responsibility (SER) specialists will directly work with suppliers at their factories.
Led-training and webinars: Utilzing Dell knowledge with digital tools to organize vitual networking events, training courses.
Self-paced online trainings: Dell offfers digital learning opportunities for supplier management in mulitple languages through its online training platforms.
Training for frontline employees: Dell valued employees who helps the comany monitor factories. Therefore, opportunities for deeper learning to further adapt to the company standards and requirements is a both sides benefit.
Developed tools and resources: Dell developed and shared tools that the company have developed with factories to automate monitoring the working process while ensuring the safety and envionmental protection.
26 Figure. Dell's key performance indicator, FY22
6.3. Dell's vision to sustainability supply chain with environmental protection
Dell is aim at reducing the company supply chain's impact on the planet and collborate with stakeholders to address the problems of climate change. Dell efforts to drive sustainability in every aspects of business and hold its suppliers, partners in the same level of accountability.
Figure 16: Dell performance on reducing impact on gobal planet, FY22
Source: Dell Technologies Report
Dell stepped up its supply chain environmental initiatives and saw advancements in waste management, water stewardship, and greenhouse gas (GHG) emissions reduction through its supplier partnerships.
For 2020 and 2021, The Institute of Public & Environmental Affairs (IPE) in China recognized Dell as a Green Supply Chain Corporate Information Transparency Index (CITI) Master, highlighting the beneficial effects of the
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company's supply chain environmental initiatives. Only two businesses have received this accolade, including Dell.
A corporation must adopt to these qualify to be recognized as a CITI Master:
Place as a top-performing brand in the CITI ranking each year to be eligible to become a CITI Master.
Promote strict performance benchmarks for the environmental management of their supply chain.
Demonstrate that all significant vendors use data systems to monitor their environmental performance.
In general, from laptops to enterprise solutions, Dell has continuously introduced new products and services, maintaining a strong position in the technological innovation market. Furthermore, Dell's initiatives demonstrate a holistic commitment to environmental responsibility and technical growth.
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