Dell global supply chain is addressing increasing energy efficiency for small & middle scale manufacturing factories with the fact of low energy management awareness, energy management resource scarcity, weak energy management capability. Dell initiated supply chain energy efficiency program in 2018 aiming to support small & middle scale suppliers to do energy management gap analysis, set GHG reduction targets and primarily build up energy management system. 

Energy management gap analysis

Based on supply chain energy survey results, we initially defined high energy consumption facilities, processes, production machines and confirmed energy efficiency levels. Arranged energy experts to conduct energy efficiency onsite gap analysis and assessment. Energy efficiency improvement suggestions, IOR (improvement and outcome rate) calculation and improvement priority was shared with factories by energy experts. Factories worked out final energy efficiency improvement action plans finally. In 2019, 23 factories participated Dell supply chain energy efficiency program and worked out 150 specific energy improvement action plans, 34% of which are high prioritized. Take a case that implemented in a PCB manufacturing factory for example, after onsite visit, energy expert suggested “collect and reuse heat generated by air compressor to reduce natural gas usage” estimating investment of 450K RMB with 300K cost saving yearly (IOR is 1.5 year). With the specific IOR calculation results, the factory implemented this energy efficiency suggestion successfully and got saving expectation. Statistically, there was totally 275130 Ton carbon dioxide emission reduced from these 23 participated factories during July to December in 2019. 

Emission Reduction Target Setting

This program addressed helping participated factories to set reduction targets and ensure successful accomplishment of Dell 2030 emission reduction target. Emission reduction includes annual targets, middle-term and long-term targets. Update to date, 15 out of 23 participated factories have set annual reduction targets and 8 factories have middle-term and long-term emission reduction targets in place. For example, after data review and onsite gap analysis for a PCB factory, energy experts found the main energy resource is electricity, with detail energy distribution: 66% from manufacturing machines, 15.5% from air conditioning systems, 13.3% from air compression systems and 5.2% from lighting systems and more. Based on electricity consumption status, manufacturing equipment, air conditioning system and air compression systems were well addressed. From aspect of manufacturing equipment energy analysis, supported by manufacturing and equipment departments, energy conservation plans like “Photo exposure machine LED lamp update”, “Frequency conversion renovation of dust collecting system” have been put into middle-term and long-term plans. And experts also pointed out some energy efficiency improvement suggestions, like “Frequency conversion centrifugal unit or magnetic suspension unit updates for central air conditioning systems”, “Auto-switch control module installation for natural cooling unit of air conditioning systems”, “cooling stuffing replacement to increase cooling tower heat exchange efficiency”. Factory set emission reduction targets of 30% for 2025 and 40% for 2030 based on comprehensive consideration of energy efficiency plans in-place, productivity planning, budget plans and renewable energy usage planning (including renewable electricity purchase and dispatched solar cell panel system installment). 

“It’s better to teach fishing than to give fish”

Dell is providing capability building for energy management system build-up in order to ensure small & middle scale suppliers consistently and continuously conduct energy reservation work. We are providing training, webinar and technical support and guidance on energy policy, energy management team, data management, target setting, energy saving investment and energy performance management to support factories build up and implement core elements of energy management system. Up to date, 3 factories have passed and got ISO5001 certificates, and by end of 2020, there will be 5 more suppliers will get ISO5001 certificates.

Dell Technologies Inc. has published emission reduction target in 2030 social impact report in Nov. 2019. Dell will continuously collaborate with supply chain partners to reduce energy consumption and carbon footprint and improve global supply chain sustainability with larger range and further extent.

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