Product design and lifecycle management refer to the entire lifecycle of a product from its inception. In other words, it refers to the timeline from the product being first introduced in the market/customers till it is removed/discarded from the market. It covers all the stages of producing and managing a product or a service. Whether it's design, manufacturing, packing, or distribution, the markets are leaning toward sustainable and eco-friendly practices to meet societal and customer needs. Developing a sustainable product design and lifecycle management system helps companies comply with ESG (environmental, social, and governance) standards and considerations. There are four stages of a product’s life cycle, as follows:

1. Market Introduction and Development
2. Market Growth
3. Market Maturity
4. Market Decline

Importance of Product Design and Lifecycle Management

A sound product design and lifecycle management plan assists businesses in reaching many immediate and long-term milestones. For instance, communication across various departments becomes easy, resulting in a streamlined and quicker production process. Some of the benefits of an efficient product design and lifecycle management plan are as follows:

• Introducing the product in the market faster
• Producing high-quality products
• Reducing room for error and waste
• Boosting sales opportunities
• Improving product safety

Industry Best Practices

1. Efficient Product Packaging & Distribution

The E-commerce industry moves a wide range of goods to its customers who would otherwise visit brick-and-mortar stores to purchase them. However, the high volumes of packaging shipments may impose environmental threats like carbon pricing and rising fuel costs. Efficient product packaging allows e-commerce businesses to save shipping costs and the costs incurred to source materials. However, most companies rely on outsourcing for logistics and shipping. Such companies may not have complete control over the logistics and shipping processes but still, have a choice of suppliers that use energy-efficient shipping methods. Companies handling the shipping processes can save shipping costs by switching to efficient routing and fuel reduction. Those savings can also be passed on to the customers, which is a win-win situation for both parties.

2. Innovative design and manufacturing with fewer environmental impacts

Companies manufacturing appliances are constantly on the verge of creating products that stand out from their competitors. One such differentiating factor is the environmental impact of these products during their entire lifecycle. Manufacturers must implement design and manufacturing practices of the products during the manufacturing, utilization, and disposal stages with minimal environmental impacts. For instance, energy and water efficiency must be the top priority while manufacturing washing machines. That, in turn, also reduces the operating costs of these appliances for the consumers. It is recommended that companies consider the environmental impacts of their products and develop innovative designs accordingly. All the various stages of the product lifecycle, from its inception to disposal (cradle-to-grave), must be considered. Doing so does not only increase consumer demand but also the market share. Moreover, companies following these practices also have a better ranking when it comes to extended producer responsibility.

3. Better End-of-life Management

The increasing rate of resource replenishment and products reaching their end-of-life is a massive concern for businesses, especially companies manufacturing fuel cells and industrial batteries. Thus, such companies must incorporate efficient end-of-life management while maximizing material efficiency. Firstly, batteries and fuel cells comprise hazardous materials which must be disposed of carefully as they may pose severe environmental and human health threats. Companies must focus on recovery rates, creating efficient design practices for reuse, disassembly, and recycling. Doing so assists in reducing the lifecycle impacts of batteries and fuel cells. Moreover, industrial battery and fuel cell companies can improve their long-term operational efficiency by introducing take back, recycling, and reusing recovery materials in their manufacturing process.

4. Creating a closed-loop manufacturing cycle

Businesses have always had a linear approach to product lifecycle management. However, the issue with this is it requires resources, labor, and materials input at each stage. Such a linear approach toward product design and manufacturing also leads to environmental concerns. Companies must consider these factors and incorporate a closed-loop manufacturing cycle. Promoting reuse, recycling, and remanufacturing are the primary means to achieve an efficient closed-loop manufacturing cycle. This approach works best to create sustainable supply chains and efficient product lifecycle management.

Case Study

Dell’s Global Take Back Programme: The Business Case for a Sustainable Supply Chain

Dell is one of the renowned computer manufacturing and technology companies globally. The company offers a wide range of IT hardware, software services, and products to its clients, which include government agencies, large enterprises, small businesses, and the consumer market. The tech giant also markets third-party software and hardware. Dell is known for its innovative supply chain management, direct sales, and customization model.

The company initiated a recycling program in 2007 and called it the “Global Takeback.”

E-waste is the world’s largest growing waste stream with a lower rate of recycling. According to statistics, the recycling rate for global e-waste is about 15%. Being a computer manufacturer, Dell realized their responsibility in taking a leap towards sustainability and recycling the products they have put on the market. The company introduced a recycling program called the “global takeback” where it recycles the customer’s old dell computers and electronics that are beyond repair. Dell has made changes to the production use and disposal of plastic with a full lifecycle approach which is the highlight of their takeback program. Especially the product design, which emphasizes ease of repair and recyclability from the very beginning. Moreover, the company also focuses on incorporating sustainable materials like recyclable plastic in its packaging and products.

Through the takeback program, Dell has managed to recover 1.76 billion pounds of electronics since 2007. The closed-loop supply chain of the company has helped them create 5,000 tonnes of new parts for millions of units over 90 different products.

Through collaboration with TruCost, Dell has taken a multi-capital approach to quantify the natural capital benefits of the closed-loop model.