Reverse

Logistic
s
Economic
opportunit
y
or threat?

Linda Forbes – Unit B8 – May 2007

• Introduction to supply chain
management and logistics

• What are reverse logistics?

• Changing practices

• Recent legislation

• Conclusions
Supply Chain Management
– procure
– make
– move
– store
– service

Logistics
– movement of products between points
– activities involved in making this happen
– various stages of a supply chain
Supply Chain Management
• 15 factories

• 2,500 products

• 1,000 component suppliers

• 25,000 customers

• 14 distribution centres

• 7,500 components

• 150 contract packers

What are reverse logistics?
UK retail sales = £230.5 billion (inc £5.75bn returns est 2002)

returns by sector
catalogue retailing 30%
books and magazines 10-20%
durable products 4%
music & entertainments 10%

reasons for returns

over-ordering
faulty goods
sale or return
personal decision
and now, legislation

Annual cost to industry £500 million

 Changing practices
Publishing industry
Moving towards firm sale
On demand printing of single copies
PDF downloads
e-paper and ink

Music and entertainments industry

Downloads from internet
iPods
Digital TV
 Recent legislation
End of Life Vehicle Directive
Waste Electrical and Electronic Equipment Directive – WEEE
Restriction of Hazardous Substances – RoHS
End of Life Vehicle Directive
Around 2 million ELVs arise in the UK each year.

From 2006 to 2014, at least 85% reuse and recovery by an average

weight per vehicle and year, increasing to at least 95% from 2015.
 Waste Electrical and Electronic
Equipment Directive – WEEE
• Came into force on 2 January 2007.

• Producers had to join a compliance scheme

by 15 March 2007.

• Full responsibility for treating and recycling

household WEEE began on 1 July 2007.
 Restriction of Hazardous
Substances – RoHS
• Came into force on 1 July 2006.

• Bans placing new electrical and electronic equipment

containing more than agreed levels of lead, cadmium,
mercury, hexavalent chromium, polybrominated
biphenyl (PBB) and polybrominated diphenyl ether
(PBDE) flame retardants on EU market.

• Will affect WEEE reprocessing techniques.

Opportunities
Re-engineering of business processes
New manufacturing techniques
More reuse, recycling and less waste
Lower costs, less environmental impact
Collaborative working practices
Conclusions
Threats
Materials being transported more often
Higher fossil fuel use and emissions
Flytipping and pollution
Higher costs