Good practice

Leasing extends end-of-life product cycles at Xerox

Leasing extends end-of-life product cycles at Xerox
©sylv1rob1, image #115493025, 2017, source: Fotolia.com
Resources:
Materials, Waste
Sector:
Manufacturing of machinery and equipment, Office and administration
Cost:
High cost
Annual saving:
20 - 35%
Payback time:
1 - 3 Year(s)
Resource savings: Raw material:
To prepare for remanufacturing, Xerox overhauled their production design making sure that 80 % of the parts in their newest digital copier was remanufacturable and 97 % was recyclable (already in 1999, 90 % of its equipment could be used in the remanufacturing process)
Resource savings: Waste:
Xerox achieved a 94 % recycling rate for non-hazardous solid waste, more than 2.2 million cartridges and containers are returned and 1.3 million pounds of toner are reused every year
Associated cost savings: Waste:
20 - 35%
Premises and operation areas:
Product and design, Production processes, Waste and recycling
Size of company:
Medium (less than 250), Large (more than 250)
Advancement in applying resource efficiency measures:
Advanced

Xerox sees the 'green' light

  • Copy machine-maker develops strong remanufacturing business model
  • Its reverse supply chain activities save around € 107 million annually and divert 35 million kg of waste from landfill

Xerox ventured into the managed service sector by enabling customers to lease its printing and copying machines, paying per print or copy made, with maintenance costs included in the cost per click. The managed print services business model has been so successful that it accounts for nearly 50 % of the company's current revenue.

On the back its successful euipment-leasing activities, Xerox recognised that the returned equipment still had considerable residual value offering cost and resource savings both through reduced warehousing or disposal costs and through the reuse of valuable components. So the company set up a process for reclycing and remanufacturing old products, and offering used products after cleaning and refurbishing them. This created a market for customers that could not afford new products.  

Setting up sophisticated systems like this required a steady flow of returned products, which Xerox realised it could do by first focusing on specific models and parts before expanding the programme to cover more device types.

Key results

Thanks to remanufacturing activities, Xerox was able to cut down on waste and new materials, which saved money and improved the environment. Xerox reported that it saves an estimated € 107 million (~$ 170 million) annually through product remanufacturing, it diverted around 35 million kg of waste from landfills, saved over 115 million pounds of greenhouse gasses, and decreased cross-continental transportation. Today, remanufacturing makes up around 25 % of its production output and plays a key role in Xerox's corporate social responsibility and sustainability efforts.

Testimonials:

"The Green Electronics Council has bestowed its Catalysing Impact at Scale Award upon Xerox for our global reverse supply chain initiative that contributes to a robust circular economy. This initiative helped Xerox realise over $ 127 million in cost benefit, save over 115 million pounds of greenhouse gasses, decrease cross-continental transportation, and promote social sustainability. Xerox’s global team leads the industry with a truly innovative and sustainable reverse logistics system." - Emily Drzewiecki, Xerox Corporation

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