Reverse Logistics1.30.2008

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A COSTHA presentation on the issues regarding reserve logistics of HazMat products and packaging.

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Reverse Logistics1.30.2008

  1. 1. COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida
  2. 2. What is “Reverse Logistics”? <ul><li>Definition: </li></ul><ul><li>The return of purchased </li></ul><ul><li>goods for any reason </li></ul>
  3. 3. Who receives these returned goods? <ul><li>Manufacturer </li></ul><ul><li>Vendor </li></ul><ul><li>Distributor </li></ul><ul><li>Shipper </li></ul><ul><li>Retail Store </li></ul><ul><li>Sales Department </li></ul>
  4. 4. Reasons for return: <ul><li>Damage </li></ul><ul><li>Defective </li></ul><ul><li>Malfunction </li></ul><ul><li>Obsolescence </li></ul><ul><li>Out of Business </li></ul><ul><li>Product recall </li></ul><ul><li>Wrong delivery </li></ul><ul><li>Other </li></ul>
  5. 5. Sources of Reverse Logistics Hardware Building supply Grocery Pharmacy Department store Specialty Boutiques Convenience stores “ Big Box store” Other? Independent sales agents Catalog sales & Warehouses Recall coordinators Auto, ATV, Motorcycle Dealers Marinas, Parts Stores
  6. 6. Benefits of Return Logistics <ul><li>Incident control </li></ul><ul><li>Verification of return or replacement </li></ul><ul><li>Investigate product failure </li></ul><ul><li>Quality control </li></ul>
  7. 7. Benefits of Return Logistics <ul><li>Recycling or remanufacturing </li></ul><ul><li>Limit waste generation </li></ul><ul><li>Ensure proper disposal (“Green initiative”) </li></ul>
  8. 8. Can these be hazardous materials? <ul><li>YES! </li></ul><ul><li>In most cases, products </li></ul><ul><li>entering reverse transport </li></ul><ul><li>need to be shipped in </li></ul><ul><li>accordance with regulations </li></ul><ul><li>governing the safe </li></ul><ul><li>transport of dangerous goods. </li></ul>
  9. 9. Common commodities found in “Reverse Logistics” <ul><li>Perfumes and fragrances </li></ul><ul><li>Cosmetics </li></ul><ul><li>Paints and coatings </li></ul><ul><li>(including pails, cans, nail care) </li></ul><ul><li>Construction Adhesives </li></ul><ul><li>Aerosols </li></ul><ul><li>Paints, Insecticides </li></ul><ul><li>Household cleaners </li></ul><ul><li>Automotive products </li></ul><ul><li>Adhesives </li></ul><ul><li>Solvents </li></ul><ul><li>Battery operated electronics </li></ul><ul><li>Gasoline fueled equipment & </li></ul><ul><li>Internal combustion engines </li></ul><ul><li>Chain saws, Weed whackers </li></ul><ul><li>Generators </li></ul><ul><li>Power washers </li></ul><ul><li>Auto, Boat, ATV, Motorcycle </li></ul><ul><li>Replacement parts </li></ul><ul><li>Camping Equipment </li></ul><ul><li>Fuels ( Propane, gas, sterno, etc.) </li></ul><ul><li>Stoves </li></ul><ul><li>Heaters </li></ul><ul><li>Lanterns </li></ul>
  10. 10. Transportation is Regulated <ul><li>Pipeline and Hazardous Materials Safety Administration (PHMSA) </li></ul><ul><li>a department of the </li></ul><ul><li>US Department of Transportation </li></ul><ul><li>(DOT) </li></ul>
  11. 11. How Reverse Logistics Works: <ul><li>Preparation for Transport: </li></ul><ul><li>“ Hazmat employee” §171.8 and Part 172, Subpart H </li></ul>
  12. 12. How Reverse Logistics Works: <ul><li>Packaging used: </li></ul><ul><li>Specification </li></ul><ul><li>Overpacks </li></ul><ul><li>Salvage/emergency </li></ul><ul><li>Exemption/SP Packaging </li></ul>
  13. 13. How Reverse Logistics Works: USPS Air Express Common carrier Private carrier
  14. 14. DOT/PHMSA’s position: “ Regulation alone is not enough to fulfill our safety mission. We rely on partners, like COSTHA members, to help protect the public and the environment from careless or non-compliant shipments” “ The partnership we are entering will develop and introduce practical safety solutions that work for the public and the regulated industry.”
  15. 15. COSTHA’s ROLE in REVERSE LOGISTICS: “ The industry has established an excellent safety record for regulatory compliance and safety in the distribution of hazardous materials.”
  16. 16. COSTHA’s ROLE in REVERSE LOGISTICS: <ul><li>“ We now need to examine the reverse logistics process where: </li></ul><ul><li>the person packing the returns may not be a trained hazmat employee; </li></ul><ul><li>the packaging may not be the same as when it was originally shipped; </li></ul><ul><li>the person preparing the returns may not be aware of the hazards associated with transportation.” </li></ul>
  17. 17. Win – Win Outcome: “ Through this partnership, COSTHA and PHMSA can openly discuss the issues and provide solutions to enhance transportation safety”
  18. 18. Goals and objectives: <ul><li>Obtain industry input at: </li></ul><ul><li>organized workshops </li></ul><ul><li>discussion groups </li></ul><ul><li>meetings </li></ul><ul><li>forums </li></ul>
  19. 19. Goals and objectives: <ul><li>Team with PHMSA in a creative process to: </li></ul><ul><li>Develop acceptable and achievable standards </li></ul>
  20. 20. Desired Outcomes: <ul><li>Assessment of the reverse logistics issue </li></ul><ul><li>Introduce standards and guidelines </li></ul><ul><li>Implement systems </li></ul><ul><li>Identify required resources to control transport risk </li></ul><ul><li>Incident prevention </li></ul>
  21. 21. Moving Forward with Reverse Logistics: <ul><li>WHO? </li></ul><ul><li>- COSTHA Members </li></ul><ul><li>- Non-members </li></ul><ul><li>WHAT? </li></ul><ul><li>- Identify funding needs and resources </li></ul><ul><li>- Education and Outreach </li></ul><ul><li>WHERE? </li></ul><ul><li>- Scheduled meetings – COSTHA, DOT </li></ul>
  22. 22. The COSTHA partnership with PHMSA is a commitment to moving this initiative forward COME JOIN US! COSTHA
  23. 23. QUESTIONS? <ul><li>Contact Information: </li></ul><ul><li>COSTHA </li></ul><ul><li>7803 Hill House Court </li></ul><ul><li>Fairfax Station, VA </li></ul><ul><li>22039 </li></ul><ul><li>Phone: 703/451-4031 Fax: 703/451-4207 </li></ul><ul><li>Email: [email_address] </li></ul>Presentation creatively designed by H.Skolnik and R.Jessop

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