bark consults sustainable logistics

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Reverse Logistics: Designing Your Supply Chain for Product Recovery Theresa J. Barker Zelda B. Zabinsky University of Washington, Seattle, Washington IIE Applied Solutions Conference May 24, 2011

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Page 1: Bark consults sustainable logistics

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

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Product recovery characteristics

global limitations on natural resources

growing interest in “cradle to cradle” manufacturing philosophy

existing supply chain challenges

motivations and opportunities

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Critical supply chain decisions

facility location

supplier selection

robustness and quality

product recovery

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Real-world implementation

Producer Customer

Stage 1:Collection

ReuseRefurbishRecycleDisposal

Stage 2:Sort/Test

Stage 3:Processing

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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)

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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)

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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

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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

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City of Bellevue e-Waste curbside recycling

residentialcustomer

site

TotalReclaim(Seattle)

curbsidee-wasterecycling Allied

Wastepickup

recycledcomponents

and materials

disposal

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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

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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

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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