The Manufacturing Leadership Council recently announced the list of world-class manufacturing companies and individual leaders that received recognition as winners of the 2019 Manufacturing Leadership Awards. The Manufacturing Leadership Awards, now in their fifteenth year, honor manufacturing companies and individual manufacturing leaders that are shaping the future of global manufacturing. Oracle was recognized for its outstanding achievement in sustainability leadership. The winning project was Oracle’s extensive global product take-back program that enables Oracle to recover, reuse, and recycle returned equipment. Oracle has taken back around three million pounds of product a year for the past several years, mostly from customers. This amount is expected to grow over time as Oracle processes equipment from its Cloud data centers. Oracle also won the MLA High Achiever Award for this category; Oracle was selected as the high achiever across all of the other winners for the category.
Anthony Devito, VP, Direct-to-Customer Supply Chain Operations, who received the award (pictured in the center) for Oracle, stated, “Handling more uses, the remanufacturing required expansion so there were more opportunities to take back additional product resulting in increased volume available for reuse. Oracle reused more than 150,000 parts and products. From an ROI perspective, Oracle has doubled our throughput, from a daily output of 20 servers to over 40 servers. Oracle saved $30 million last year, representing a 150% savings increase from the prior year.”
To incentivize customers to use Oracle's take-back programs, Oracle provides on-site support at no charge. Oracle also issued over one million USD in credits to customers in fiscal year 2018. The value credited is based on the value Oracle recovers through reuse. The aging equipment also provides a supply of spare parts, enabling Oracle to extend the life of other equipment. Some customers want extended support on Oracle's hardware products and harvesting spare parts from take back enables this. By increasing the percentage of reuse from take back, versus recycling, Oracle conserves natural resources, reduces carbon emissions and creates financial value – thereby realizing the vision of the circular economy. This helps Oracle comply with environmental regulations and also provides new opportunities to repurpose equipment to extend its useful life or incorporate its materials back into the supply chain at the end of a product’s life. The aging equipment also provides a supply of spare parts, enabling Oracle to extend the life of other equipment.
Congratulations to Anthony and Oracle’s supply chain team!