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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
Overview ,[object Object],[object Object],[object Object],[object Object]
Product recovery characteristics ,[object Object],[object Object],[object Object],[object Object]
Critical supply chain decisions ,[object Object],[object Object],[object Object],[object Object]
Real-world implementation Producer Customer Stage 1: Collection Reuse Refurbish Recycle Disposal Stage 2: Sort/Test Stage 3: Processing
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
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)
Real-world implementations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example 1:  Major medical device manufacturer refurbishing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
Example 2: City of Bellevue e-Waste recycling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
City of Bellevue e-Waste curbside recycling Photos courtesy Republic Services/Allied Waste
Example 3: Shaw Industries carpet recycling (residential) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Shaw Industries carpet recycling (residential) depolymerizing facility tested & baled carpet Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding independent recycling location
Example 4: Shaw Industries carpet recycling (commercial) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Shaw Industries carpet recycling (commercial) depolymerizing facility direct shipping Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding commercial customer location
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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Bark consults sustainable logistics

  • 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.
  • 3.
  • 4.
  • 5. Real-world implementation Producer Customer Stage 1: Collection Reuse Refurbish Recycle Disposal Stage 2: Sort/Test Stage 3: Processing
  • 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. 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.
  • 9.
  • 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.
  • 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. City of Bellevue e-Waste curbside recycling Photos courtesy Republic Services/Allied Waste
  • 14.
  • 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.
  • 17. Shaw Industries carpet recycling (commercial) depolymerizing facility direct shipping Shaw holding warehouse recycled nylon 6 carpet fiber inventory holding commercial customer location
  • 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