bark consults sustainable logistics
TRANSCRIPT
Reverse Logistics: Designing Your Supply Chain for Product RecoveryTheresa J. BarkerZelda B. ZabinskyUniversity of Washington, Seattle, WashingtonIIE Applied Solutions ConferenceMay 24, 2011
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Overview
Product recovery characteristics
Critical supply chain decisions
Real world implementation
Tradeoffs: making it work for you
3
Product recovery characteristics
global limitations on natural resources
growing interest in “cradle to cradle” manufacturing philosophy
existing supply chain challenges
motivations and opportunities
4
Critical supply chain decisions
facility location
supplier selection
robustness and quality
product recovery
5
Real-world implementation
Producer Customer
Stage 1:Collection
ReuseRefurbishRecycleDisposal
Stage 2:Sort/Test
Stage 3:Processing
Reverse Logistics Decision Guide
Stage 2: Sort/Test
industry-wide
proprietary
centralized
distributed
Stage 1: Collection
secondary facility
Stage 3: Processing
original facility
good for cost sharing, commodity-type product
high proprietary control, strong customer relations
high-cost testing, commodity-type product
low-cost testing, avoid shipping scrap
refurbishing, high producer control
good for cost-sharing, commodity-type product
Decisions Considerations
more information: Barker and Zabinsky, “Designing For Recovery”, Industrial Engineer (April 2010)
Implementation Paths
Stage 2: Sort/Test
industry-wide proprietary
centralized distributed
Stage 1: Collection
secondary facility
Stage 3: Processing
original facility
centralized distributed
original facility
original facility
secondary facility
original facility
secondary facility
secondary facility
DecisionsStages
Barker, Theresa J. and Zabinsky, Zelda B. (2008) “Reverse Logistics: a conceptual framework for decision making,” International Journal of Sustainable Engineering, 1(4):250-260.
Medical devicesCopierse-Waste
SandCarpetPaper
Computers
ShoesEngines
(13)
(0) (0)
(4)
(12) (5)
(4) (2)
Real-world implementations
Industry-wide CollectionCentralized Test & Secondary
Processingconstruction sand recyclingrecycled plastic kayakscellular phone remanufacturingpower tool remanufacturingcarpet recyclingelectronics recyclingsteel by-productscarpet recycling
Distributed Test & Secondary Processing
cardboard recyclinge-scrap recyclingpaper recycling
Proprietary CollectionCentralized Test & Original
Processinglab equipment restockingrefinery equipment restockingreusable glass soft drink bottlessubway spare parts restockingmilitary aircraft remanufacturingcircuit board refurbishingprinter toner cartridge recyclingcar engine remanufacturingsingle-use camera recycling
Centralized Test & Secondary Processing
business computer refurbishingaircraft engine remanufacturing
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Example 1: Major medical device manufacturer refurbishing
medical diagnostic product high-tech refurbishing operation manufacturing facility in the Pacific Northwest customers nation-wide
hospitals medical clinics small physician clinics
product life 7-10 years fully serviced under contract
Sims/UnitedReclaim Inc.
(Chicago)
Producer Warehouse
(PacificNorthwest)
Major medical device manufacturer refurbishing
outdated product at customer
site
reuse
spare partsrecovery
recycle
secondary market customer
refurbish
excess inventory
disposal
potentialrefurbishing
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Example 2:City of Bellevue e-Waste recycling
curbside e-waste recycling commodity recycling system government legislation Bellevue city contract with Allied Waste
one of the first municipal e-waste recyclers implemented proactively, not due to legislation contract bid out for curbside pickup
final processing by Total Reclaim (Seattle) e-waste recycler
City of Bellevue e-Waste curbside recycling
residentialcustomer
site
TotalReclaim(Seattle)
curbsidee-wasterecycling Allied
Wastepickup
recycledcomponents
and materials
disposal
13
City of Bellevue e-Waste curbside recycling
Photos courtesy Republic Services/Allied Waste
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Example 3:Shaw Industries carpet recycling (residential)
carpet fiber depolymerizing (nylon 6) collected from dozens of independent
recycling centers nation-wide processing facility located in Georgia resulting fiber “better than virgin”
effective incentive program for ensuring purity in returned product
notable customer preference for “recycled” carpet product
Shaw Industries carpet recycling (residential)
independentrecyclinglocation
depolymerizingfacility
tested &baled carpet
Shawholding
warehouse
recycled nylon 6
carpet fiber
inventoryholding
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Example 4:Shaw Industries carpet recycling (commercial)
completely recyclable commercial product carpet square installable in commercial spaces reduces waste by replacing worn carpet
elements only fiber-to-fiber, back-to-back recycling
lifetime recycling guarantee toll-free 800 number stamped on back collected directly from customer sites
recycled in nylon 6 recycling facility
Shaw Industries carpet recycling (commercial)
commercialcustomerlocation
depolymerizingfacility
directshipping
Shawholding
warehouse
recycled nylon 6
carpet fiber
inventoryholding
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Tradeoffs: making it work for you
Motivators
Type of product
Customer relationships
Government mandate
Testing costs
Third-party providersProprietary knowledge
Reverse logistics supply chain