Reverse Logistics

Linda Forbes – Unit B8 – May 2007

Reverse Logistic s Economic opportunit y or threat?

• Introduction to supply chain management and logistics • What are reverse logistics? • Changing practices • Recent legislation • Conclusions

Supply Chain Management – procure – make – move – store – service

Logistics – movement of products between points – activities involved in making this happen – various stages of a supply chain

Supply Chain Management • 15 factories • 2,500 products • 1,000 component suppliers • 25,000 customers • 14 distribution centres • 7,500 components • 150 contract packers

What are reverse logistics? UK retail sales = £230.5 billion (inc £5.75bn returns est 2002) returns by sector catalogue retailing books and magazines durable products music & entertainments

30% 10-20% 4% 10%

reasons for returns over-ordering faulty goods sale or return personal decision and now, legislation Annual cost to industry £500 million

Changing practices Publishing industry Moving towards firm sale On demand printing of single copies PDF downloads e-paper and ink

Music and entertainments industry Downloads from internet iPods Digital TV

Recent legislation End of Life Vehicle Directive Waste Electrical and Electronic Equipment Directive – WEEE Restriction of Hazardous Substances – RoHS

End of Life Vehicle Directive Around 2 million ELVs arise in the UK each year. From 2006 to 2014, at least 85% reuse and recovery by an average weight per vehicle and year, increasing to at least 95% from 2015.

Waste Electrical and Electronic Equipment Directive – WEEE •

Came into force on 2 January 2007.

•

Producers had to join a compliance scheme by 15 March 2007.

•

Full responsibility for treating and recycling household WEEE began on 1 July 2007.

Restriction of Hazardous Substances – RoHS • Came into force on 1 July 2006. • Bans placing new electrical and electronic equipment containing more than agreed levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants on EU market. • Will affect WEEE reprocessing techniques.

Opportunities

Threats

Re-engineering of business processes

Materials being transported more often

New manufacturing techniques

Higher fossil fuel use and emissions

More reuse, recycling and less waste

Flytipping and pollution

Lower costs, less environmental impact

Higher costs

Collaborative working practices

Conclusions