2Sustain

A blog focused on sustainable business issues and challenges

Cisco’s Packaging Diet Estimated to Save $24 Million in First Year

March 12, 2010

Cisco is in the process of developing a comprehensive sustainable value chain strategy that includes a broad-based green packaging initiative. And, early results from this “packaging diet” are “sensational, to say the least,” reports Claudia Girrbach at Greener Computing earlier this week.

For example:

  • The pilot program alone could lead to $24 million in annual savings for Cisco. (Girrbach provides the complete breakdown of savings by product here.)
  • One product line reduced packaging by 33 percent and increased transportation load utilization by 50 percent resulting in $1.3 million annual savings.
  • The most dramatic improvement for a product was a whopping 450 percent increase in transportation efficiency with savings of $1.8 million.
  • More than 4 million pounds of materials were eliminated across the pilot products.
  • Plus, Cisco made progress increasing recycling potential, reduced GHGs related to transport and decreased its energy and water use.

In the article, Girrbach details more specifics about Cisco’s accomplishments –and the challenges that remain. She points out that since nearly all of Cisco’s manufacturing is outsourced, the company needed to engage with its more than 1,000 suppliers in order to make improvements. Cisco partnered with its suppliers and emphasized how suppliers would share the benefits of improved packaging, Girrbach says.

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