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Energy Use & Climate Change

TRANSPORTATION & LOGISTICS

At EMC, we believe that efficiency, cost savings, and environmental benefit can go hand in hand. EMC ships globally to more than 120 countries, always balancing speed of delivery and product protection with operational efficiency and environmental integrity. We consistently seek to reduce greenhouse gas (GHG) emissions by focusing on route consolidation, mode of transport, and logistics carrier engagement.

We collaborate internally and externally to pursue our objectives. Cross-functional employee teams help analyze the drivers of GHG emissions, prioritize impact areas, and drive projects to reduce our environmental footprint. Externally, we engage our logistics carriers to increase efficiency and adopt more sustainable practices.

IMPROVING OUR LOGISTICS OPERATIONS EVERY DAY

Route consolidation for greater efficiency
Freight consolidation can produce financial and environmental benefits. By shipping greater volumes of product in fewer, more efficiently packed shipments, we can reduce fuel consumption, costs, and GHG emissions. This approach has been applied across EMC’s product value cycle, including inbound logistics from suppliers, outbound logistics to customers, and reverse logistics for product take back at end-of-life.

Mode selection for lower GHG emissions
In 2012, we expanded our efforts to use modes of transport with lower GHG emissions factors. For example, we shifted one North American shipping lane from truck to rail. This reduced associated GHG emissions by an estimated 50 percent and cut costs by 25 percent.

The transition to lower-emitting modes of transport—such as sea, rail, and intermodal routing—is a priority for our logistics sustainability program. However extensive packaging and quality assurance testing is necessary before shifting to a different mode of transport. For instance, sea transport brings risks of damage from moisture, while rail transport has different vibration patterns than truck transport, which can damage product if not adequately packaged. We continue to evaluate these opportunities and implement those that make sense for the environment and our business strategy.

PARTNERING WITH OUR CARRIERS TO DRIVE CHANGE

Sustainability is embedded into the business relationship with our logistics carriers. We collaborate with carriers to optimize routes, leveraging their logistics networks and capabilities to improve EMC’s costs, timeliness, and environmental impact. We also exchange sustainability strategies and industry best practices. In addition to this collaboration, we set standards and reporting requirements that support our sustainability objectives.

Carrier GHG emissions reporting
EMC’s major carriers are required to report CO2e emissions for the freight they carry for EMC. In 2012, we developed and piloted a standard template for carriers to report this emissions data. Our objective is to simplify the aggregation of data which can be complex when carriers use different reporting formats. In 2013, we will collect and analyze feedback about the benefits and challenges of the standard template before expanding its use to all carriers.

Reporting environmental initiatives and performance
Carriers are also asked to present their companies’ sustainability programs and goals during quarterly business reviews. In 2012, EMC developed a new sustainability section within the logistics scorecard. This section, which we plan to pilot in early 2013, is used to rate carrier performance. We also began requiring our logistics partners to acknowledge the EMC® Supplier Code of Conduct in accordance with the Supply Chain Social and Environmental Responsibility program. To learn more, visit Supply Chain Responsibility.

SmartWay
In the United States, we require our carriers to join the SmartWay Transport Partnership, a program of the U.S. Environmental Protection Agency that works with carriers to increase efficiency and reduce GHG emissions. In 2012, EMC again achieved greater than 98 percent domestic freight volume moved using SmartWay-certified providers.

MEASURING OUR IMPACT

EMC’s Global Logistics Operations generated approximately 167,362 MT CO2e in 2012. This number is estimated using the GHG emissions reports from our logistics partners and covers inbound, outbound, interplant, and customer service transportation and logistics. In 2012, we collected emissions reports from carriers representing 75 percent of our logistics spend, and extrapolated total emissions based on the reports we received. We also set standards to quantify the environmental impact of logistics proj¬ects which helps measure progress and identify projects with the highest potential to reduce GHG emissions.

Our objective is to advance EMC’s initiatives to promote a low-carbon future by continually integrating sustainability practices into strategy development and everyday operations, and by collaborating with logistics partners to achieve emissions reductions. We will continue to make incremental improvements, report our progress, and aspire to the big changes that will significantly lighten our environmental impact worldwide.

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