The document discusses the challenges and strategies of reverse logistics in relation to landfill usage and transportation packaging. It highlights the environmental impact of waste generation and the rising costs of landfill disposal, prompting companies to consider reusable transport packaging as a cost-efficient alternative. Additionally, it outlines the growing trend of product take-back programs in the U.S., driven by legislative changes and corporate responsibility initiatives.

1. Reverse Logistics
and the
Environment

3. Landfill Costs and Availability
• There is a shortage of landfill space
• Prices of landfill usage have been rising.
• Considering the rate at which Americans generate waste,
landfill alternatives must be developed.
• New ways are considered to prolong the lives of existing
landfills by reducing the volume of material that goes into
them.
• The reduction in material sent to the landfill can be
achieved through recycling, composting and
incineration.

4. Transport Packaging
 Although it does not receive much attention in the trade press, the
usage and impact of transportation packaging, pallets, drums,
gaylords, boxes, etc., is a significant portion of the total packaging
used globally each year.
In some U.S. cities, the cost to dispose of
corrugated can be as high as the cost of purchasing it.37 The
rising cost of purchasing and disposing of transport
materials is leading many companies to consider reusable
transport packaging.

5. Transport Packaging
Although environmental reasons have factored heavily in
many firms' switch to reusable transport packaging, for
some, it is simply a matter of economics. Reusable
containers are generally much more expensive than singleuse
packaging. However, if a reusable container is reused a
number of times, the per-trip cost of the reusable container
quickly becomes less expensive than the disposable
packaging.

6. Returnable Packaging
Considerations
 Benefits of Reusables
One of the major reasons why companies consider reusable
transport packaging is to save on the purchase and disposal
costs of disposable packaging. In addition to a lower per-trip cost, reusables may provide
better protection for the products being shipped. Reusables
can provide the user with much future flexibility. As
transportation requirements change, reusables can often be
reconfigured by modifying the dunnage, which is much
cheaper than buying new containers. Finally, if the
company no longer has any use for the containers, they can
be returned to the vendor for a credit. Because containers
are often made of recyclable materials, they are recycled
when they have reached the end of their useful lives.

7. Returnable Packaging
Considerations
 Transportation Costs of Reusables
Transportation materials costs are by no means the only
consideration in a decision about reusable containers. Many
of the company's costs related to handling, transporting, and
tracking shipments and materials will be heavily affected by
a change to reusable containers. Transportation costs are a major stumbling block to reusable
containers. They tend to be heavier than the corrugated
materials they replace. Because shipping costs can be
weight-related, this translates into higher outbound
transportation costs. If trucks “weigh out,” that is, they are
filled to their maximum weight limit, the extra weight of
reusable containers means that fewer units can be put on
each truck, which also means higher shipping costs.

8. Returnable Packaging
Considerations
 Ergonomics
Ergonomics must play a role in container selection. Some
materials are much heavier than others. A gaylord-sized
wooden container can weigh over 100 pounds, which is too
heavy for a single person to comfortably lift on a regular
basis, which means two people or a forklift are needed.
Also, the contents of some larger sizes cannot comfortably be
reached without repositioning the container.

9. Returnable Packaging
Considerations
 Costs of Utilizing Reusable Containers
· Forward Transportation Costs
· Reverse Transportation Costs
· Container Inventory Management
· Inspection
· Cleaning
· Repair
· Storage
· Sorting
· Adapting for Future Use

10. Product Take-Back
A number of societal changes regarding the environment are
having a profound impact on reverse logistics, as shown
above. In general, there appears to be a trend toward greater
restrictions and limitations on what may be placed in a
landfill, as well as how and where a product may be
disposed.

11. Product Take-Back
 Take-Back Laws in the United States
Some companies have begun to realize the potential
marketing benefits of a take-back program. In the U.S., the
President’s Council on Sustainable Development has begun
to study the idea of Extended Product Responsibility (EPR).
Extended Product Responsibility focuses on the total life of
the product, looking for ways to prevent pollution and
reduce resource and energy usage through the product’s life
cycle.

12. Product Take-Back
Many companies, such as Compaq, Hewlett-Packard, Nortel,
Frigidaire, and Xerox have adopted EPR. Also, industrywide
programs have been created to recycle nickel-cadmium
batteries and auto bumpers. Take-back programs in the United States are not prevalent.
However, some are developing. At least 15 states have laws
requiring retailers to take back vehicle batteries. Maryland
passed a law requiring manufacturers and retailers to set up
a system for collecting mercury oxide batteries. Advanced disposal fees (ADFs) are paid by
the consumer at
the time of purchase to cover the cost of disposing of the
product at the end of its life. At least 22 states have ADFs on
tires, many states have them on motor oil and some have
them on white goods, such as appliances.

13. Product Take-Back
 Computers
While there is currently no mandatory take-back of
computers in the U.S., the U.S. is the world’s leading
producer and user of personal computers. The U.S.
electronics industry has begun to study how to recycle
electronic products52 , and has begun designing an ideal
electronics recycling center.53 The U.S. EPA has begun
studying the collection of end-of-life electronics components.
So far, it has funded two collection pilots for residential
electronic and electrical equipment.

14. Product Take-Back
In Japan, by the year 2000, makers of electrical devices will
be required to recycle their own products. In response to this
coming deadline, IBM Japan began a program to encourage
customers to trade their old computers in on a new system.
Depending on the age and value of the system being
brought in, the customer receives a certain amount of credit.
The returned computers will have their processors and hard
disks upgraded, and will be returned to stores to be sold.

15. Product Take-Back
It is estimated that in California alone, more than two
million obsolete PCs are abandoned every year. Many
charitable organizations have created standards for
acceptable and unacceptable computers. In the words of a
spokeswoman for Goodwill Industries, a large U.S.
charitable organization, “We don’t want your junk."