Supply Chain

Opening a window to our supply chain via virtual reality customer tours

Dell’s new virtual reality tour of our suppliers’ manufacturing facilities is one of the many ways we’re helping customers see further and deeper into our global supply chain.


Customers are increasingly concerned about the social and environmental impact of the products they buy. According to Nielsen’s 2015 Global Corporate Sustainability Report, 66 percent of customers are willing to pay more for products and services from companies that are committed to positive social and environmental impact.

At Dell, we frequently get customer questions about our social and environmental impact that fall into the realm of our supply chain. Customers want to know things like where raw materials are sourced, how workers are treated and how production processes affect the planet. And we are committed to providing this information. That’s why one of our 2020 Legacy of Good goals is to demonstrate 100 percent transparency of key issues within our supply chain, working with suppliers to mitigate risks in these areas.

At Dell, we’ve opened the door to our supply chain. Take a look around. Explore more videos here.

It is our goal to audit 100 percent of high-risk direct materials suppliers (risk-assessed based on geographic location, business relationship, commodity and past audit performance) and select service suppliers (Suppliers of logistics, call centers and packaging, among other commodities, are included at Dell’s discretion based on operational risk.) at least every other year to ensure they’re upholding the high standards of ethical behavior outlined in the Responsible Business Alliance Code of Conduct. We also require key suppliers to publish a Global Reporting Initiative (GRI)-based sustainability report, publicly report their carbon emissions and water use data, and submit a water risk mitigation plan. To give customers transparency into all of these areas, as well as others, such as responsible sourcing and protecting vulnerable workers, we publish a Supply Chain Sustainability Progress Report and a Responsible Minerals Sourcing Report.

While these reports and data are critical to transparency, we wanted to do even more to deepen our customers’ understanding of global supply chain conditions. Since 2015, we have hosted customers on annual, in-person tours of suppliers’ facilities, each time visiting a different city. In late 2017, we hosted a tour in Chengdu, China, visiting two of our original design manufacturers: Wistron and Compal. During our Compal visit, we filmed the experience and turned it into a virtual reality tour, accessible to anyone worldwide.

Filming the tour (as opposed to staging a video) was important to us. It was created as actual customers explored the facility’s manufacturing floor, recreation areas and dorms (Many workers come from other cities and countries for work.). We also captured the worker-engagement sessions in which customers directly asked workers about their living and working conditions. The virtual reality tour enables others to get a sense of what it’s like to work and live in a factory.

“What I was most impressed with was the worker interaction, where we actually got to talk to and listen to a lot of the workers. It impressed me with the really open and transparent dialogue; it surprised me even. A big thank-you to Dell, of course, for inviting us here. It’s been really valuable.”

Helena Nordin, Sustainability Manager of Advania (toured the Chengdu facility)

Supply Chain Goals

Supplier GHG Emissions Targets and Reporting

By 2020, Dell’s suppliers representing 95% of direct materials spend, along with key logistics suppliers, will set specific greenhouse gas (GHG) emissions reduction targets and report on their emissions inventory

*Progress to goal is being calculated based on direct suppliers only.

88%* TO GOAL
FY18 PROGRESS

Suppliers representing 84% of our direct materials spend, along with 60% of our key logistics suppliers, have set GHG emissions reduction targets and publicly report their emissions inventory.

84%

direct suppliers

60%

key logistics suppliers

2-YEAR TREND
FY18 - 84% of 95%
FY17 - 81% of 95% Percentage of direct suppliers with GHG reduction targets
RELATED SDGs

Climate Action (13)

Supply Chain Transparency

Demonstrate 100% transparency into key issues within our supply chain, working with suppliers to mitigate risks in those areas. To help achieve this goal, we will continue to track the following metrics:

SUBGOAL
Supplier Audits

Audit 100% of high-risk [1] direct materials suppliers and select service suppliers [2]

91% TO GOAL
FY18 PROGRESS

It is our goal to audit 100% of our high-risk supplier facilities on a two-year cycle. In FY17–FY18, 91% of our high-risk supplier facilities (including first-tier and sub-tier supplier facilities) underwent Responsible Business Alliance third-party audits. As a result of the Dell and EMC integration, the number of supplier sites considered high-risk increased. We have adjusted our resources and will audit all remaining high-risk supplier sites in FY19.

91%
2-YEAR TREND
FY18 - 91% of 100%
FY17 - 90% of 100% High-risk supplier audits
RELATED SDGs

Decent Work and Economic Growth (8), Reduced Inequalities (10), Responsible Consumption and Production (12)

[1] Suppliers are risk-assessed based on geographic location, business relationship, commodity and past audit performance.
[2] Suppliers of logistics, call centers and packaging, among other commodities, are included at Dell’s discretion based on operational risk.

SUBGOAL
Supplier Sustainability Reports

Ensure that Dell's suppliers representing 95% of direct materials spend publish a sustainability report in accordance with Global Reporting Initiative (GRI) or equivalent recognized global framework

95% TO GOAL
FY18 PROGRESS

In FY18, suppliers representing 90% of our direct materials spend published a sustainability report.

90%
2-YEAR TREND
FY18 - 90% of 95%
FY17 - 87% of 95% Percentage of direct suppliers with GRI reports
RELATED SDGs

Responsible Consumption and Production (12)

SUBGOAL
Water Risk Mitigation Plans

Require a five-year responsible water risk mitigation plan from our top 250 direct materials supplier facilities in water-stressed regions or with water-intensive processes

60% TO GOAL
FY18 PROGRESS

Through FY18, 150 of our supplier facilities in scope have submitted five-year water risk mitigation plans. In FY18, 110 projects — ranging from water efficiency to water reuse improvements — were implemented by suppliers. These projects reduced the amount of wastewater generated by 2.4 million cubic meters and saved over 815,000 cubic meters of freshwater.

150

supplier-facilities with water risk mitigation plans

2-YEAR TREND
FY18 - 150 of 250
FY17 - 100 of 250 Cumulative number of facilities with water risk mitigation plans
RELATED SDGs

Responsible Consumption and Production (12)