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Packaging and Logistics

We are always seeking ways to minimize our environmental footprint by consciously improving the methods we use to package and deliver our products.

Packaging
Each year, with every new product we ship, we examine opportunities to reduce packing materials and increase the proportion of recyclable materials used. Whether products are custom packaged or prepared for bulk shipping, we design our containers to maximize package density and reduce overall package size. We also use recycled content in our packing materials and, for bulk shipments, re-use materials as often as possible.

Examples of our efforts to reduce packaging and recycle include:

  • Using 100 percent recyclable device trays made of paper pulp fibers instead of polymer resins.
  • Using 100 percent recycled fiber “gray board” for many of our packing structures.
  • Using vegetable oil-based instead of petroleum-based printing inks.
  • Reusing moisture-barrier bags, trays, and cartons whenever feasible.
  • Redesigning our outer and inner pack boxes to increase units per pallet, eliminating end caps and packing foam.
  • Using suppliers that leverage distribution centers to minimize the shipping footprint of packing/packaging materials.
  • Shipping accessories directly to the distributor for end-point assembly, wherever possible.
  • Clearly labeling packages that have recycled content so that all parties understand what elements can be re-used.
  • Leveraging existing packaging for return merchandise authorization support when feasible.

Recycled materials and packaging sometimes are not strong enough to protect sensitive computer equipment when it is shipped around the world. We strive to maintain a balance of protecting the environment and ensuring our customers receive their products in excellent condition.

In 2012, we carefully scrutinized packaging dimensions and weights for environmental impact during handling and transit, and we successfully reduced their carbon footprint. This measure alone will save us $430,000 per year.

Our key bulk and custom packaging suppliers are compliant with NVIDIA’s Environmental Compliance Certification for ROHS, Halogen-free and REACH certifications.

We closely monitor the cost savings associated with packaging-related process improvements, and our goal for future years is to track the environmental impact of these efforts.

Logistics
The manner in which we plan, pack and execute our raw material, work-in-progress, and finished-goods shipments has a significant effect on our carbon footprint. Given that fuel represents a major component of our overall freight costs, our continuous focus on optimizing our supply chain and reducing freight expenditures has resulted in cost savings and a positive impact on the environment.

Logistics optimization efforts include:

  • Implementing consolidation programs to help optimize packing configuration and reduce the number of pick-ups and deliveries.
  • Optimizing subcontractor packing to ensure that cartons and pallets are fully packed and efficiently unitized.
  • Using lightweight paper or cardboard pallets to reduce shipment weights, where feasible.
  • Implementing a multimodal (ocean/truck) replenishment program for U.S. and retail distribution outside of the U.S.
  • Instituting a balanced supplier scorecard that includes a category awarding points for our suppliers’ participation in environmental initiatives.
  • Implementing reverse logistics solutions that utilize on site or regional failure verification and/or repair to streamline reverse logistics and (eliminating international shipments).

We continue to gather data from shipping partners related to the carbon emissions of our shipments from air, land and sea. Our goal is to determine the appropriate metric by which to target reductions.