Martha Coopersmith-GraySeni or Environmental Engi neerLucent Envi ronm ent Heal th and Saf ety Organi zati onLucent Technologies

475 South StreetTel (973) 606-2351Fax (973) 889-7314

Lucent Technologies

Business to Business ElectronicRecycling Programs

NEMI ConferenceSeptember 13 2000

Lucent Technologies Presentation Overview

bull Lucent Current Profile

bull Lucent EHampS Programsndash Policyndash Goalsndash Worldwide Standards (WWS)

bull WWS for Hazardous Waste and Contaminated Scrap

bull Case Study -Product Takeback and RecyclingPrograms

bull Key challenges for Lucentrsquos PTR programs

2

Lucent Technologies - Who we Are

bull Lucent is a world leader in the CommunicationsNetworking Marketndash We are a team of 150000 people including 26000

members of our innovative engine Bell Laboratoriesndash We are 33rd among Fortune 500 companies a global

leader in virtually all the markets where we competendash Building on a 125 year heritage with a team now 40

new to Lucent since our launchndash Constantly reinventing our business for the evolving

communications market

3

Lucentrsquos EHampS Policy

4

Lucent Technologies is committed to protecting the environment and thehealth and safety of our people our customers and the communities wherewe operate Meeting this commitment is a primary management objectiveand the individual and collective responsibility of all Lucent employeesworldwide To that end we shall

comply with all applicable environmental health and safety lawsregulations and Lucentrsquos Global EHampS standards

establish management systems for environment health and safetybased on recognized standards and set company-wide goals forcontinual improvement

integrate environment health and safety into our business plans anddecisions -- including in the design production distribution and supportof our products and services

ensure that our products are safe and work with suppliers andcustomers to promote responsible use throughout their life cycle

reduce environmental impact and conserve natural resources byminimizing waste and emissions reusing and recycling material andresponsibly managing energy use

motivate and prepare all employees to take personal accountabilityfor protecting the environment and creating a safe and healthyworkplace

be a leader in deploying and promoting innovative cost-effectiveenvironmental health and safety technologies and proceduresboth within and outside the company

We will regularly review and improve this policy communicateit to all employees and make it available to allstakeholders

Lucent Technologies

environmental health and safety policy

April 30 1998Lucent Policy PO-96-001 Issue 2

Rich McGinnChairman and Chief Executive Officer

John PittmanVice President Chief QualityEnvironment Health and Safety Officer

httpgehs wh lucentcomindexasp

ldquoWe make the things that make communications workrdquo

Lucent Technologies Presentation Overview

bull Lucent Current Profile

bull Lucent EHampS Programsndash Policyndash Goalsndash Worldwide Standards (WWS)

bull WWS for Hazardous Waste and Contaminated Scrap

bull Case Study -Product Takeback and RecyclingPrograms

bull Key challenges for Lucentrsquos PTR programs

2

Lucent Technologies - Who we Are

bull Lucent is a world leader in the CommunicationsNetworking Marketndash We are a team of 150000 people including 26000

members of our innovative engine Bell Laboratoriesndash We are 33rd among Fortune 500 companies a global

leader in virtually all the markets where we competendash Building on a 125 year heritage with a team now 40

new to Lucent since our launchndash Constantly reinventing our business for the evolving

communications market

3

Lucentrsquos EHampS Policy

4

Lucent Technologies is committed to protecting the environment and thehealth and safety of our people our customers and the communities wherewe operate Meeting this commitment is a primary management objectiveand the individual and collective responsibility of all Lucent employeesworldwide To that end we shall

comply with all applicable environmental health and safety lawsregulations and Lucentrsquos Global EHampS standards

establish management systems for environment health and safetybased on recognized standards and set company-wide goals forcontinual improvement

integrate environment health and safety into our business plans anddecisions -- including in the design production distribution and supportof our products and services

ensure that our products are safe and work with suppliers andcustomers to promote responsible use throughout their life cycle

reduce environmental impact and conserve natural resources byminimizing waste and emissions reusing and recycling material andresponsibly managing energy use

motivate and prepare all employees to take personal accountabilityfor protecting the environment and creating a safe and healthyworkplace

be a leader in deploying and promoting innovative cost-effectiveenvironmental health and safety technologies and proceduresboth within and outside the company

We will regularly review and improve this policy communicateit to all employees and make it available to allstakeholders

Lucent Technologies

environmental health and safety policy

April 30 1998Lucent Policy PO-96-001 Issue 2

Rich McGinnChairman and Chief Executive Officer

John PittmanVice President Chief QualityEnvironment Health and Safety Officer

httpgehs wh lucentcomindexasp

ldquoWe make the things that make communications workrdquo

Lucent Technologies - Who we Are

bull Lucent is a world leader in the CommunicationsNetworking Marketndash We are a team of 150000 people including 26000

members of our innovative engine Bell Laboratoriesndash We are 33rd among Fortune 500 companies a global

leader in virtually all the markets where we competendash Building on a 125 year heritage with a team now 40

new to Lucent since our launchndash Constantly reinventing our business for the evolving

communications market

3

Lucentrsquos EHampS Policy

4

Lucent Technologies is committed to protecting the environment and thehealth and safety of our people our customers and the communities wherewe operate Meeting this commitment is a primary management objectiveand the individual and collective responsibility of all Lucent employeesworldwide To that end we shall

comply with all applicable environmental health and safety lawsregulations and Lucentrsquos Global EHampS standards

establish management systems for environment health and safetybased on recognized standards and set company-wide goals forcontinual improvement

integrate environment health and safety into our business plans anddecisions -- including in the design production distribution and supportof our products and services

ensure that our products are safe and work with suppliers andcustomers to promote responsible use throughout their life cycle

reduce environmental impact and conserve natural resources byminimizing waste and emissions reusing and recycling material andresponsibly managing energy use

motivate and prepare all employees to take personal accountabilityfor protecting the environment and creating a safe and healthyworkplace

be a leader in deploying and promoting innovative cost-effectiveenvironmental health and safety technologies and proceduresboth within and outside the company

We will regularly review and improve this policy communicateit to all employees and make it available to allstakeholders

Lucent Technologies

environmental health and safety policy

April 30 1998Lucent Policy PO-96-001 Issue 2

Rich McGinnChairman and Chief Executive Officer

John PittmanVice President Chief QualityEnvironment Health and Safety Officer

httpgehs wh lucentcomindexasp

ldquoWe make the things that make communications workrdquo

Lucentrsquos EHampS Policy

4

Lucent Technologies is committed to protecting the environment and thehealth and safety of our people our customers and the communities wherewe operate Meeting this commitment is a primary management objectiveand the individual and collective responsibility of all Lucent employeesworldwide To that end we shall

comply with all applicable environmental health and safety lawsregulations and Lucentrsquos Global EHampS standards

establish management systems for environment health and safetybased on recognized standards and set company-wide goals forcontinual improvement

integrate environment health and safety into our business plans anddecisions -- including in the design production distribution and supportof our products and services

ensure that our products are safe and work with suppliers andcustomers to promote responsible use throughout their life cycle

reduce environmental impact and conserve natural resources byminimizing waste and emissions reusing and recycling material andresponsibly managing energy use

motivate and prepare all employees to take personal accountabilityfor protecting the environment and creating a safe and healthyworkplace

be a leader in deploying and promoting innovative cost-effectiveenvironmental health and safety technologies and proceduresboth within and outside the company

We will regularly review and improve this policy communicateit to all employees and make it available to allstakeholders

Lucent Technologies

environmental health and safety policy

April 30 1998Lucent Policy PO-96-001 Issue 2

Rich McGinnChairman and Chief Executive Officer

John PittmanVice President Chief QualityEnvironment Health and Safety Officer

httpgehs wh lucentcomindexasp

ldquoWe make the things that make communications workrdquo

Lucentrsquos EHampS Goals

Purpose and Intent

bull EHampS Goals serve both as drivers to ensure theorganization is focused on key activities andmeasure the progress of our actions

bull The Goals are tools to communicate progress toour leadership and ensure adequate resourceand attention are focused on the effort

5

Lucentrsquos EHampS Worldwide Standards

bull Reduce potential risks and liabilities

bull Increase productivity through improved working

conditions

bull Protect and enhance Lucentrsquos brand image

bull Establish Lucent as responsible corporate citizen

bull Compensate for lack of harmonization among countrylaws

6

Lucentrsquos Current Recycling Programs

Materials of Concern Generated by Lucentbull All types of batteries (lead-acid Ni-Cad Metal Hydride

Absolyte Lithium etc)

bull Mercury wastes

bull Electronic Scrap

bull Solder paste dross skimmings etc

bull Printed Wiring BoardsPrinted Circuit Boards (PWBPCB)

bull Fluorescent Lamps

bull Waste Solvents

bull Radiological waste

bull Remediation Waste

7

Lucentrsquos Current Recycling Programs

8

Drivers

bull Regulatory Requirements

bull Business Needs - Internal and ExternalCustomers

bull Global Approach

bull North America EMEA CALAAsiaPacific and China

CASE STUDY Lucentrsquos Take BackProcess Flow Diagram for EMEA

3Customer Decides to

Decommission EquipmentH AbelingT King

4Customer Notifies Lucent CT of

Take Back NeedCustomer Identifies an Office

CoordinatorH AbelingT King

5Lucent CT Notifies SCO

Business Manager of Take BackSchedule and Office Contact

H AbelingT King

6SCO Business Manager

Contacts Office Coordinator toAssess Scope of Work

SCO

7Walk Through

Required

8SCO Schedules Walk Through

with Customer and SCOSelected De-Installer

SCO - S Hopkins

9SCO Identifies

1) Items for RE-USE2) Items for Re-sale3) Items for Scrap4) Hard vs Soft Removal

SCO - S HopkinsR German

10SCO Removal Specialist

Coordinates De-installationPacking and Transportation from

OfficeSCO - R German

No

Yes

11Re-sale

SCO

12Transport Equipment to SCO

WarehouseSCO - R GermanR Tine

13Sort Material for Final

DispositionSCO - R GermanR Tine

14Crate Material for Immediate

Sale or RemanufactureSCO -R GermanC McGovern

Yes

No11a

ScrapReclaimGEHampSGPO

One-Lucent Take Back Process1

Asset Recovery SCO - F Lally

No

15Collect Resale REUSE amp

Financial DataSCOLKern

11bCollect ScrapReclaim amp

Financial DataGEHampSGPOCFO

16Compliance amp Financial

ReportingScrapReclaimNewResaleREUSE

GEHampSEETLKern

Yes AR Process

SCO ProcessDocumentation

Support -Ed Lucas

2New Sale for Lucent

HAbelingTKing

No

Yes

SalesData toBlock 16

bull Creation of Lucent-wideStrategy

bull Designing in proactive mode

bull Teams meet formally viaconference calls - weekly

bull Will make logical use of existinginfrastructure (LU or External)

bull Gap closure focusing on in-country legislationregulationsand transboundary shipments

bull Projected turn up by Qtr4 2000

9

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Lucentrsquos EHampS Worldwide Standards

bull Reduce potential risks and liabilities

bull Increase productivity through improved working

conditions

bull Protect and enhance Lucentrsquos brand image

bull Establish Lucent as responsible corporate citizen

bull Compensate for lack of harmonization among countrylaws

6

Lucentrsquos Current Recycling Programs

Materials of Concern Generated by Lucentbull All types of batteries (lead-acid Ni-Cad Metal Hydride

Absolyte Lithium etc)

bull Mercury wastes

bull Electronic Scrap

bull Solder paste dross skimmings etc

bull Printed Wiring BoardsPrinted Circuit Boards (PWBPCB)

bull Fluorescent Lamps

bull Waste Solvents

bull Radiological waste

bull Remediation Waste

7

Lucentrsquos Current Recycling Programs

8

Drivers

bull Regulatory Requirements

bull Business Needs - Internal and ExternalCustomers

bull Global Approach

bull North America EMEA CALAAsiaPacific and China

CASE STUDY Lucentrsquos Take BackProcess Flow Diagram for EMEA

3Customer Decides to

Decommission EquipmentH AbelingT King

4Customer Notifies Lucent CT of

Take Back NeedCustomer Identifies an Office

CoordinatorH AbelingT King

5Lucent CT Notifies SCO

Business Manager of Take BackSchedule and Office Contact

H AbelingT King

6SCO Business Manager

Contacts Office Coordinator toAssess Scope of Work

SCO

7Walk Through

Required

8SCO Schedules Walk Through

with Customer and SCOSelected De-Installer

SCO - S Hopkins

9SCO Identifies

1) Items for RE-USE2) Items for Re-sale3) Items for Scrap4) Hard vs Soft Removal

SCO - S HopkinsR German

10SCO Removal Specialist

Coordinates De-installationPacking and Transportation from

OfficeSCO - R German

No

Yes

11Re-sale

SCO

12Transport Equipment to SCO

WarehouseSCO - R GermanR Tine

13Sort Material for Final

DispositionSCO - R GermanR Tine

14Crate Material for Immediate

Sale or RemanufactureSCO -R GermanC McGovern

Yes

No11a

ScrapReclaimGEHampSGPO

One-Lucent Take Back Process1

Asset Recovery SCO - F Lally

No

15Collect Resale REUSE amp

Financial DataSCOLKern

11bCollect ScrapReclaim amp

Financial DataGEHampSGPOCFO

16Compliance amp Financial

ReportingScrapReclaimNewResaleREUSE

GEHampSEETLKern

Yes AR Process

SCO ProcessDocumentation

Support -Ed Lucas

2New Sale for Lucent

HAbelingTKing

No

Yes

SalesData toBlock 16

bull Creation of Lucent-wideStrategy

bull Designing in proactive mode

bull Teams meet formally viaconference calls - weekly

bull Will make logical use of existinginfrastructure (LU or External)

bull Gap closure focusing on in-country legislationregulationsand transboundary shipments

bull Projected turn up by Qtr4 2000

9

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Lucentrsquos Current Recycling Programs

Materials of Concern Generated by Lucentbull All types of batteries (lead-acid Ni-Cad Metal Hydride

Absolyte Lithium etc)

bull Mercury wastes

bull Electronic Scrap

bull Solder paste dross skimmings etc

bull Printed Wiring BoardsPrinted Circuit Boards (PWBPCB)

bull Fluorescent Lamps

bull Waste Solvents

bull Radiological waste

bull Remediation Waste

7

Lucentrsquos Current Recycling Programs

8

Drivers

bull Regulatory Requirements

bull Business Needs - Internal and ExternalCustomers

bull Global Approach

bull North America EMEA CALAAsiaPacific and China

CASE STUDY Lucentrsquos Take BackProcess Flow Diagram for EMEA

3Customer Decides to

Decommission EquipmentH AbelingT King

4Customer Notifies Lucent CT of

Take Back NeedCustomer Identifies an Office

CoordinatorH AbelingT King

5Lucent CT Notifies SCO

Business Manager of Take BackSchedule and Office Contact

H AbelingT King

6SCO Business Manager

Contacts Office Coordinator toAssess Scope of Work

SCO

7Walk Through

Required

8SCO Schedules Walk Through

with Customer and SCOSelected De-Installer

SCO - S Hopkins

9SCO Identifies

1) Items for RE-USE2) Items for Re-sale3) Items for Scrap4) Hard vs Soft Removal

SCO - S HopkinsR German

10SCO Removal Specialist

Coordinates De-installationPacking and Transportation from

OfficeSCO - R German

No

Yes

11Re-sale

SCO

12Transport Equipment to SCO

WarehouseSCO - R GermanR Tine

13Sort Material for Final

DispositionSCO - R GermanR Tine

14Crate Material for Immediate

Sale or RemanufactureSCO -R GermanC McGovern

Yes

No11a

ScrapReclaimGEHampSGPO

One-Lucent Take Back Process1

Asset Recovery SCO - F Lally

No

15Collect Resale REUSE amp

Financial DataSCOLKern

11bCollect ScrapReclaim amp

Financial DataGEHampSGPOCFO

16Compliance amp Financial

ReportingScrapReclaimNewResaleREUSE

GEHampSEETLKern

Yes AR Process

SCO ProcessDocumentation

Support -Ed Lucas

2New Sale for Lucent

HAbelingTKing

No

Yes

SalesData toBlock 16

bull Creation of Lucent-wideStrategy

bull Designing in proactive mode

bull Teams meet formally viaconference calls - weekly

bull Will make logical use of existinginfrastructure (LU or External)

bull Gap closure focusing on in-country legislationregulationsand transboundary shipments

bull Projected turn up by Qtr4 2000

9

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Lucentrsquos Current Recycling Programs

8

Drivers

bull Regulatory Requirements

bull Business Needs - Internal and ExternalCustomers

bull Global Approach

bull North America EMEA CALAAsiaPacific and China

CASE STUDY Lucentrsquos Take BackProcess Flow Diagram for EMEA

3Customer Decides to

Decommission EquipmentH AbelingT King

4Customer Notifies Lucent CT of

Take Back NeedCustomer Identifies an Office

CoordinatorH AbelingT King

5Lucent CT Notifies SCO

Business Manager of Take BackSchedule and Office Contact

H AbelingT King

6SCO Business Manager

Contacts Office Coordinator toAssess Scope of Work

SCO

7Walk Through

Required

8SCO Schedules Walk Through

with Customer and SCOSelected De-Installer

SCO - S Hopkins

9SCO Identifies

1) Items for RE-USE2) Items for Re-sale3) Items for Scrap4) Hard vs Soft Removal

SCO - S HopkinsR German

10SCO Removal Specialist

Coordinates De-installationPacking and Transportation from

OfficeSCO - R German

No

Yes

11Re-sale

SCO

12Transport Equipment to SCO

WarehouseSCO - R GermanR Tine

13Sort Material for Final

DispositionSCO - R GermanR Tine

14Crate Material for Immediate

Sale or RemanufactureSCO -R GermanC McGovern

Yes

No11a

ScrapReclaimGEHampSGPO

One-Lucent Take Back Process1

Asset Recovery SCO - F Lally

No

15Collect Resale REUSE amp

Financial DataSCOLKern

11bCollect ScrapReclaim amp

Financial DataGEHampSGPOCFO

16Compliance amp Financial

ReportingScrapReclaimNewResaleREUSE

GEHampSEETLKern

Yes AR Process

SCO ProcessDocumentation

Support -Ed Lucas

2New Sale for Lucent

HAbelingTKing

No

Yes

SalesData toBlock 16

bull Creation of Lucent-wideStrategy

bull Designing in proactive mode

bull Teams meet formally viaconference calls - weekly

bull Will make logical use of existinginfrastructure (LU or External)

bull Gap closure focusing on in-country legislationregulationsand transboundary shipments

bull Projected turn up by Qtr4 2000

9

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

CASE STUDY Lucentrsquos Take BackProcess Flow Diagram for EMEA

3Customer Decides to

Decommission EquipmentH AbelingT King

4Customer Notifies Lucent CT of

Take Back NeedCustomer Identifies an Office

CoordinatorH AbelingT King

5Lucent CT Notifies SCO

Business Manager of Take BackSchedule and Office Contact

H AbelingT King

6SCO Business Manager

Contacts Office Coordinator toAssess Scope of Work

SCO

7Walk Through

Required

8SCO Schedules Walk Through

with Customer and SCOSelected De-Installer

SCO - S Hopkins

9SCO Identifies

1) Items for RE-USE2) Items for Re-sale3) Items for Scrap4) Hard vs Soft Removal

SCO - S HopkinsR German

10SCO Removal Specialist

Coordinates De-installationPacking and Transportation from

OfficeSCO - R German

No

Yes

11Re-sale

SCO

12Transport Equipment to SCO

WarehouseSCO - R GermanR Tine

13Sort Material for Final

DispositionSCO - R GermanR Tine

14Crate Material for Immediate

Sale or RemanufactureSCO -R GermanC McGovern

Yes

No11a

ScrapReclaimGEHampSGPO

One-Lucent Take Back Process1

Asset Recovery SCO - F Lally

No

15Collect Resale REUSE amp

Financial DataSCOLKern

11bCollect ScrapReclaim amp

Financial DataGEHampSGPOCFO

16Compliance amp Financial

ReportingScrapReclaimNewResaleREUSE

GEHampSEETLKern

Yes AR Process

SCO ProcessDocumentation

Support -Ed Lucas

2New Sale for Lucent

HAbelingTKing

No

Yes

SalesData toBlock 16

bull Creation of Lucent-wideStrategy

bull Designing in proactive mode

bull Teams meet formally viaconference calls - weekly

bull Will make logical use of existinginfrastructure (LU or External)

bull Gap closure focusing on in-country legislationregulationsand transboundary shipments

bull Projected turn up by Qtr4 2000

9

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Lucent Asset Recovery Program

Customer is looking for

bull Consolidating of its Physical Plants and Services

bull On-Line Tracking of Assets and Services

bull More Efficient Use of its Office Space

bull Cost Savings by Reduction of Inventory

bull Reducing Infrastructure Equipment Costs by

Reapplication of Equipment Into Customer

Network

10

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Asset Recovery Program Value

bull Creates Equipment Options for Customerbull Recover Revenues for Valuable Assets

bull Removal and Reduction of Hazardous Materials

bull Resale Avenues for Surplus Equipment

bull Established Vendor in a World-Wide Resale Market

Exceeding $15B in 2000

bull Liquidation of Certain Equipment

bull Consolidation of Services

bull Scrapping of Unmarketable Equipment

Customerrsquos main concern was proper disposal and recycling of equipment Lucent will

only use approved vendors for the scrapping of material

11

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Lucent Services Provided

bull Assistance in Identification and Categorizing of Retired or Antiquated Telecommunications Equipmentbull Upgrading Revision Levels of Certain Assetsbull De-Installation Handling and Shipping of Designated

Customer Assetsbull On-Line Reporting Dialogue and Accountingbull Barcode Cataloging of Assetsbull Storage and Warehousing of Assetsbull Insuring Assets During Lucent Possession

12

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13

Product Take Back - Key Challenges

bull Communication of Takeback Program to InternalLucent Organizationsndash Product Designers Product Managers Sales and Marketing

bull Understanding Customers needs andrequirements

bull Understanding and complying with regulationsndash Ensuring appropriate reporting requirements are met

bull Establishing business relationships with keyvendorsndash Approved Scrap Dealersndash Approved Transporters

13