Recycling Today Conferences: Reverse Logistics, Forward Thinking

Growing industries have been few and far between in the past 12 months, but reverse logistics—which can generate recycling opportunities—may be one of the exceptions.

In a presentation to attendees of Recycling Today’s June Paper, Plastics and Electronics Recycling Conferences in Atlanta, Jeremy Vick, vice president of the Reverse Logistics Association (RLA) told attendees that corporations are paying greater attention to the bottom-line and top-line aspects of product returns, repairs and recycling.

A recent RLA survey of large corporations, conducted with help from the University of Nevada-Reno, has indicated that companies expend or gain some $500 billion in aspects of warranty management for the products they make.

Vick said these manufacturers include makers and retailers of cars, appliances and electronics as well as smaller-ticket items such as books, food and beverages.

In all sectors, while repair and resale makes up a large part of the activity, ultimately there are also many disposal, recycling and secure product destruction decisions to be made at the end of the reverse logistics chain.

Product return rates in many industries can range from 5 to 20 percent, said Vick, but “80 percent of this is a cost that can be recovered with good reverse logistics practices.”

Vick strongly recommended outsourcing to qualified service, repair and recycling firms as the key to the best reverse logistics practices. He noted that the RLA has been designed to offer opportunities to bring together manufacturers, retailers and the third-party providers who can provide these outsourcing opportunities.

Recycling Today’s Paper, Plastics and Electronics Conferences were held June 7-9 at the Hyatt Regency Atlanta in that city’s downtown.