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  • 1.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

2. 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 Reuse Refurbish Recycle Disposal Stage 2: Sort/Test Stage 3: Processing 6. Reverse Logistics Decision Guide Stage 2:Sort/Test industry-wide proprietary centralized distributed Stage 1:Collection secondary facility Stage 3: Processing original facility Decisions Considerations more information: Barker and Zabinsky, Designing For Recovery,Industrial Engineer (April 2010) 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 7. 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 Decisions Stages Barker, Theresa J. and Zabinsky, Zelda B.(2008)Reverse Logistics:a conceptual framework fordecision making,International Journal of Sustainable Engineering,1(4):250-260. Medical devices Copiers e-Waste Sand Carpet Paper Computers Shoes Engines (13) (0) (0) (4) (12) (5) (4) (2) 8. Real-world implementations

  • Industry-wide Collection
  • Centralized Test & Secondary Processing
  • construction sand recycling
  • recycled plastic kayaks
  • cellular phone remanufacturing
  • power tool remanufacturing
  • carpet recycling
  • electronics recycling
  • steel by-products
  • carpet recycling
  • Distributed Test & Secondary Processing
  • cardboard recycling
  • e-scrap recycling
  • paper recycling
  • Proprietary Collection
  • Centralized Test & Original Processing
  • lab equipment restocking
  • refinery equipment restocking
  • reusable glass soft drink bottles
  • subway spare parts restocking
  • military aircraft remanufacturing
  • circuit board refurbishing
  • printer toner cartridge recycling
  • car engine remanufacturing
  • single-use camera recycling
  • Centralized Test & Secondary Processing
  • business computer refurbishing
  • aircraft engine remanufacturing

9. 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

10. Major medical device manufacturer refurbishing Sims/United Reclaim Inc. (Chicago) ProducerWarehouse (Pacific Northwest) reuse spare parts recovery recycle secondary market customer refurbish excessinventory disposal potential refurbishing outdatedproduct atcustomersite 11. 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

12. City of Bellevue e-Waste curbside recycling Total Reclaim (Seattle) curbside e-waste recycling Allied Waste pickup recycled components and materials disposa l residential customer site 13. City of Bellevue e-Waste curbside recycling Photos courtesy Republic Services/Allied Waste 14. 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

15. Shaw Industries carpet recycling (residential) depolymerizing facility tested & baled carpet Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding independent recycling location 16. 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

17. Shaw Industries carpet recycling (commercial) depolymerizing facility direct shipping Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding commercial customer location 18. Tradeoffs:making it work for you Motivators Type of product Customer relationships Government mandate Testing costs Third-party providers Proprietary knowledge Reverse logisticssupply chain