Importance of Refurbished Parts for Servicing Computer Systems

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1 2009/SOM1/MAG/WKSP/004 Importance of Refurbished Parts for Servicing Computer Systems Submitted by: Dell Remanufacturing Workshop Singapore 21 February 2009

2 Importance of Refurbished Parts for Servicing Computer Systems David Thompson of Dell Inc. APEC - Singapore Feb 21, 2009 Page 1 Agenda Representing IT industry s general practice Refurbished Service Parts Benefits: APEC Economies Reduces Cost to Customer High Quality Standards Environmentally Friendly Market Access - Support Request Removing Trade Barriers (outside APEC) Page 2 1

3 General IT Industry Service Flow 2 Warranty replacement part is sent to fix customer s computer right away. Defective part returned to manufacturer. CUSTOMER SATISFACTION Customer s computer breaks 1 3 Defective Part is refurbished to like new status HIGH QUALITY PARTS GOOD FOR ENVIRONMENT POSITIVE IMPACT TO APEC 4 Refurbished parts shipped to warehouses worldwide to support future customer service calls. MARKET ACCESS / LOWER COST TO CONSUMER Page 3 Refurbished Parts Support Customers Globally Globallyide Refurbished parts readily accepted / shipped to support customers globally OEM Repair Facility in China Customer in Peru Singapore Distribution Center Defective Return Refurbished Fulfillment Page 4 Local OEM authorized third party repair in Australia 2

4 Positive Impacts of Refurbished Parts APEC Economies Refurbished IT products originate from OEMs (Original Equipment Manufacturers) - most of which are located in APEC countries Decreases Cost to Customer Supporting all new parts for product lifecycle / portfolio costly Enables Improved Customer Satisfaction Perhaps only source of components for legacy systems Environmentally Friendly Reduces landfill impact > parts re-used; OEM warranty incentive High Quality Standards Refurbished parts undergo comprehensive, consistent and certified test and repair processes to ensure product quality Page 5 Refurbished IT Faces Trade Barriers Market Access is vital to fulfill warranty obligations Critical customers: Hospitals, Banking, Militaries Positive export impact: APEC and IT industry Typical Trade barriers (outside the APEC economies) Import Prohibitions Restrictions: Excessive documentation Import license requirements Border Delays: Lengthy inspections A 10% increase in border processing times reduces exports by 10% as one of the indicators of economic impact 3

5 Benefits Summary Positive Impact to APEC economies Decreases Cost to Customer Increased Customer Satisfaction Parts Availability Environmentally Friendly High Quality Standards Global Market Access > Support Request Page 7 THANK YOU QUESTIONS? Page 8 4

6 Backup Page 9 Remanufactured IT products undergo comprehensive, consistent and certified processes to ensure product quality Inspected, tested and remanufactured to OEM technical and current safety specifications Performed by OEM or OEM authorized service provider to ensure quality and consistency Warranted and supported similar to a new good High Quality Parts A variety of processes are employed, as appropriate for the particular product, such as: Inspect t& Test Repair Diagnostic testing Functional testing System testing Replace faulty components Upgrade to current technical bulletins Data Cleanse As applicable erase data Load Cosmetic Software Configure Service & fixes If applicable, reload operating software Load software fixes, patches, new revisions Clean remove oxidation remove scratches remove and relabel repaint If applicable, add memory, storage, to meet customer and product specifications Repackage 5

7 Refurbished IT Products Are Clearly Identified Remanufactured IT products are marked differently in order to distinguish them from equivalent new product and used products Statements on invoices/shipping paperwork, Stickers and labels on boxes and equipment Marketing material/branding Some countries have specific labeling and marking requirements for non-new products. 6