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

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

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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

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