Bark consults sustainable logistics

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Bark consults sustainable logistics

  1. 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. 2. Overview <ul><li>Product recovery characteristics </li></ul><ul><li>Critical supply chain decisions </li></ul><ul><li>Real world implementation </li></ul><ul><li>Tradeoffs: making it work for you </li></ul>
  3. 3. Product recovery characteristics <ul><li>global limitations on natural resources </li></ul><ul><li>growing interest in “cradle to cradle” manufacturing philosophy </li></ul><ul><li>existing supply chain challenges </li></ul><ul><li>motivations and opportunities </li></ul>
  4. 4. Critical supply chain decisions <ul><li>facility location </li></ul><ul><li>supplier selection </li></ul><ul><li>robustness and quality </li></ul><ul><li>product recovery </li></ul>
  5. 5. Real-world implementation Producer Customer Stage 1: Collection Reuse Refurbish Recycle Disposal Stage 2: Sort/Test Stage 3: Processing
  6. 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. 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 for decision 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. 8. Real-world implementations <ul><li>Industry-wide Collection </li></ul><ul><li>Centralized Test & Secondary Processing </li></ul><ul><li>construction sand recycling </li></ul><ul><li>recycled plastic kayaks </li></ul><ul><li>cellular phone remanufacturing </li></ul><ul><li>power tool remanufacturing </li></ul><ul><li>carpet recycling </li></ul><ul><li>electronics recycling </li></ul><ul><li>steel by-products </li></ul><ul><li>carpet recycling </li></ul><ul><li>Distributed Test & Secondary Processing </li></ul><ul><li>cardboard recycling </li></ul><ul><li>e-scrap recycling </li></ul><ul><li>paper recycling </li></ul><ul><li>Proprietary Collection </li></ul><ul><li>Centralized Test & Original Processing </li></ul><ul><li>lab equipment restocking </li></ul><ul><li>refinery equipment restocking </li></ul><ul><li>reusable glass soft drink bottles </li></ul><ul><li>subway spare parts restocking </li></ul><ul><li>military aircraft remanufacturing </li></ul><ul><li>circuit board refurbishing </li></ul><ul><li>printer toner cartridge recycling </li></ul><ul><li>car engine remanufacturing </li></ul><ul><li>single-use camera recycling </li></ul><ul><li>Centralized Test & Secondary Processing </li></ul><ul><li>business computer refurbishing </li></ul><ul><li>aircraft engine remanufacturing </li></ul>
  9. 9. Example 1: Major medical device manufacturer refurbishing <ul><li>medical diagnostic product </li></ul><ul><li>high-tech refurbishing operation </li></ul><ul><li>manufacturing facility in the Pacific Northwest </li></ul><ul><li>customers nation-wide </li></ul><ul><ul><li>hospitals </li></ul></ul><ul><ul><li>medical clinics </li></ul></ul><ul><ul><li>small physician clinics </li></ul></ul><ul><li>product life 7-10 years </li></ul><ul><li>fully serviced under contract </li></ul>
  10. 10. Major medical device manufacturer refurbishing Sims/United Reclaim Inc. (Chicago) Producer Warehouse (Pacific Northwest) reuse spare parts recovery recycle secondary market customer refurbish excess inventory disposal potential refurbishing outdated product at customer site
  11. 11. Example 2: City of Bellevue e-Waste recycling <ul><li>curbside e-waste recycling </li></ul><ul><li>commodity recycling system </li></ul><ul><li>government legislation </li></ul><ul><li>Bellevue city contract with Allied Waste </li></ul><ul><ul><li>one of the first municipal e-waste recyclers </li></ul></ul><ul><ul><li>implemented proactively, not due to legislation </li></ul></ul><ul><ul><li>contract bid out for curbside pickup </li></ul></ul><ul><li>final processing by Total Reclaim (Seattle) </li></ul><ul><ul><li>e-waste recycler </li></ul></ul>
  12. 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. 13. City of Bellevue e-Waste curbside recycling Photos courtesy Republic Services/Allied Waste
  14. 14. Example 3: Shaw Industries carpet recycling (residential) <ul><li>carpet fiber depolymerizing (nylon 6) </li></ul><ul><ul><li>collected from dozens of independent recycling centers nation-wide </li></ul></ul><ul><ul><li>processing facility located in Georgia </li></ul></ul><ul><ul><li>resulting fiber “better than virgin” </li></ul></ul><ul><li>effective incentive program for ensuring purity in returned product </li></ul><ul><li>notable customer preference for “recycled” carpet product </li></ul>
  15. 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. 16. Example 4: Shaw Industries carpet recycling (commercial) <ul><li>completely recyclable commercial product </li></ul><ul><ul><li>carpet square installable in commercial spaces </li></ul></ul><ul><ul><li>reduces waste by replacing worn carpet elements only </li></ul></ul><ul><ul><li>fiber-to-fiber, back-to-back recycling </li></ul></ul><ul><li>lifetime recycling guarantee </li></ul><ul><ul><li>toll-free 800 number stamped on back </li></ul></ul><ul><ul><li>collected directly from customer sites </li></ul></ul><ul><li>recycled in nylon 6 recycling facility </li></ul>
  17. 17. Shaw Industries carpet recycling (commercial) depolymerizing facility direct shipping Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding commercial customer location
  18. 18. Tradeoffs: making it work for you Motivators Type of product Customer relationships Government mandate Testing costs Third-party providers Proprietary knowledge Reverse logistics supply chain

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