The document discusses reverse logistics and the transportation of hazardous materials being returned. It defines reverse logistics as the return of purchased goods and examines who receives the returns and why items are returned. The document outlines that transportation of returns is regulated and how the process of reverse logistics works from preparation to transport. It describes COSTHA's role in partnering with the DOT to develop standards and guidelines to enhance safety in transporting hazardous reverse logistics goods.

1. COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida

2. What is “Reverse Logistics”? Definition: The return of purchased goods for any reason

3. Who receives these returned goods? Manufacturer Vendor Distributor Shipper Retail Store Sales Department

4. Reasons for return: Damage Defective Malfunction Obsolescence Out of Business Product recall Wrong delivery Other

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. Benefits of Return Logistics Incident control Verification of return or replacement Investigate product failure Quality control

7. Benefits of Return Logistics Recycling or remanufacturing Limit waste generation Ensure proper disposal (“Green initiative”)

8. Can these be hazardous materials? YES! In most cases, products entering reverse transport need to be shipped in accordance with regulations governing the safe transport of dangerous goods.

9. Common commodities found in “Reverse Logistics” Perfumes and fragrances Cosmetics Paints and coatings (including pails, cans, nail care) Construction Adhesives Aerosols Paints, Insecticides Household cleaners Automotive products Adhesives Solvents Battery operated electronics Gasoline fueled equipment & Internal combustion engines Chain saws, Weed whackers Generators Power washers Auto, Boat, ATV, Motorcycle Replacement parts Camping Equipment Fuels ( Propane, gas, sterno, etc.) Stoves Heaters Lanterns

10. Transportation is Regulated Pipeline and Hazardous Materials Safety Administration (PHMSA) a department of the US Department of Transportation (DOT)

11. How Reverse Logistics Works: Preparation for Transport: “ Hazmat employee” §171.8 and Part 172, Subpart H

12. How Reverse Logistics Works: Packaging used: Specification Overpacks Salvage/emergency Exemption/SP Packaging

13. How Reverse Logistics Works: USPS Air Express Common carrier Private carrier

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. 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. COSTHA’s ROLE in REVERSE LOGISTICS: “ We now need to examine the reverse logistics process where: the person packing the returns may not be a trained hazmat employee; the packaging may not be the same as when it was originally shipped; the person preparing the returns may not be aware of the hazards associated with transportation.”

17. Win – Win Outcome: “ Through this partnership, COSTHA and PHMSA can openly discuss the issues and provide solutions to enhance transportation safety”

18. Goals and objectives: Obtain industry input at: organized workshops discussion groups meetings forums

19. Goals and objectives: Team with PHMSA in a creative process to: Develop acceptable and achievable standards

20. Desired Outcomes: Assessment of the reverse logistics issue Introduce standards and guidelines Implement systems Identify required resources to control transport risk Incident prevention

21. Moving Forward with Reverse Logistics: WHO? - COSTHA Members - Non-members WHAT? - Identify funding needs and resources - Education and Outreach WHERE? - Scheduled meetings – COSTHA, DOT

22. The COSTHA partnership with PHMSA is a commitment to moving this initiative forward COME JOIN US! COSTHA

23. QUESTIONS? Contact Information: COSTHA 7803 Hill House Court Fairfax Station, VA 22039 Phone: 703/451-4031 Fax: 703/451-4207 Email: [email_address] Presentation creatively designed by H.Skolnik and R.Jessop