Reverse Logistics Conference: Decisions, Decisions

The electronics recycling chain often begins within the reverse logistics process, when OEMs, retailers and their providers decide where to direct returned or unsold merchandise.

A panel of representatives from OEMs and contract logistics, repair and recycling companies provided different perspectives on this decision-making process at a session at the 2009 Reverse Logistics Association Conference & Expo, which was held in early February in Las Vegas.

One panelist noted that one goal that can emerge in this process is the harvesting of discontinued components that will be needed in future repair service transactions. “Getting older parts is a challenge for us, and we’ll offer rebates, in some cases, to asset recovery firms,” said Lori Gallegos of telecom equipment maker Avaya.

“In some cases, parts like boards are scarce . . . and you need them to provide future service commitments,” remarked Paul Tran of repair provider Comtek Computer Systems.

Paul Adamson of Texas-based recycling company Round 2/Monitex says his company makes repair-versus-recycle decisions daily, although sometimes his company is asked to destroy products (and then recycle the materials) to keep them off the market. “A lot of material we receive isn’t defective, but it’s end-of-life as far as that client is concerned,” he commented.

As long as companies have the go-ahead to repair, it can be a valuable option, several panelists indicated. “You can learn a lot [while] repairing,” said Kelly Dudek of repair and inventory management firm ExpressPoint, noting that information gathered can improve future design and manufacturing processes.

“If you can come up with a repair option, it’s a low-cost option,” said Tran of Comtek. Panelist Jeff Harrison of reverse logistics firm Blue Raven Technology pointed to the environmental benefit of avoiding the landfill in such scenarios.

Panelist John Bair of document management service provider Pinnacle Data Systems urged attendees to keep the data protection aspects in mind when transporting, repairing or remarketing end-of-life electronics. “With storage devices, make sure [those steps] are done properly,” he cautioned.

Panelists portrayed different strategies regarding outsourcing and the use of contract manufacturers and third-party providers, but all seemed to agree that reconditioned parts and equipment can bring good merchandise back to the market.

“The quality of our repaired boards and components is at least as good as what comes out of new-build,” said Barbara Kish of Sun Microsystems, who credited thorough testing procedures that take place at repair facilities before they release a repaired product.