Bark consults sustainable logistics
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Transcript of Bark consults sustainable logistics
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Reverse Logistics: Designing Your Supply Chain for Product RecoveryTheresa J. BarkerZelda B. ZabinskyUniversity of Washington, Seattle, WashingtonIIE Applied Solutions ConferenceMay 24, 2011
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Overview
Product recovery characteristics
Critical supply chain decisions
Real world implementation
Tradeoffs: making it work for you
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Product recovery characteristics
global limitations on natural resources
growing interest in “cradle to cradle” manufacturing philosophy
existing supply chain challenges
motivations and opportunities
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Critical supply chain decisions
facility location
supplier selection
robustness and quality
product recovery
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Real-world implementation
Producer Customer
Stage 1:Collection
ReuseRefurbishRecycleDisposal
Stage 2:Sort/Test
Stage 3:Processing
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Reverse Logistics Decision Guide
Stage 2: Sort/Test
industry-wide
proprietary
centralized
distributed
Stage 1: Collection
secondary facility
Stage 3: Processing
original facility
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
Decisions Considerations
more information: Barker and Zabinsky, “Designing For Recovery”, Industrial Engineer (April 2010)
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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
DecisionsStages
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 devicesCopierse-Waste
SandCarpetPaper
Computers
ShoesEngines
(13)
(0) (0)
(4)
(12) (5)
(4) (2)
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Real-world implementations
Industry-wide CollectionCentralized Test & Secondary
Processingconstruction sand recyclingrecycled plastic kayakscellular phone remanufacturingpower tool remanufacturingcarpet recyclingelectronics recyclingsteel by-productscarpet recycling
Distributed Test & Secondary Processing
cardboard recyclinge-scrap recyclingpaper recycling
Proprietary CollectionCentralized Test & Original
Processinglab equipment restockingrefinery equipment restockingreusable glass soft drink bottlessubway spare parts restockingmilitary aircraft remanufacturingcircuit board refurbishingprinter toner cartridge recyclingcar engine remanufacturingsingle-use camera recycling
Centralized Test & Secondary Processing
business computer refurbishingaircraft engine remanufacturing
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Example 1: Major medical device manufacturer refurbishing
medical diagnostic product high-tech refurbishing operation manufacturing facility in the Pacific Northwest customers nation-wide
hospitals medical clinics small physician clinics
product life 7-10 years fully serviced under contract
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Sims/UnitedReclaim Inc.
(Chicago)
Producer Warehouse
(PacificNorthwest)
Major medical device manufacturer refurbishing
outdated product at customer
site
reuse
spare partsrecovery
recycle
secondary market customer
refurbish
excess inventory
disposal
potentialrefurbishing
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Example 2:City of Bellevue e-Waste recycling
curbside e-waste recycling commodity recycling system government legislation Bellevue city contract with Allied Waste
one of the first municipal e-waste recyclers implemented proactively, not due to legislation contract bid out for curbside pickup
final processing by Total Reclaim (Seattle) e-waste recycler
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City of Bellevue e-Waste curbside recycling
residentialcustomer
site
TotalReclaim(Seattle)
curbsidee-wasterecycling Allied
Wastepickup
recycledcomponents
and materials
disposal
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City of Bellevue e-Waste curbside recycling
Photos courtesy Republic Services/Allied Waste
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Example 3:Shaw Industries carpet recycling (residential)
carpet fiber depolymerizing (nylon 6) collected from dozens of independent
recycling centers nation-wide processing facility located in Georgia resulting fiber “better than virgin”
effective incentive program for ensuring purity in returned product
notable customer preference for “recycled” carpet product
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Shaw Industries carpet recycling (residential)
independentrecyclinglocation
depolymerizingfacility
tested &baled carpet
Shawholding
warehouse
recycled nylon 6
carpet fiber
inventoryholding
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Example 4:Shaw Industries carpet recycling (commercial)
completely recyclable commercial product carpet square installable in commercial spaces reduces waste by replacing worn carpet
elements only fiber-to-fiber, back-to-back recycling
lifetime recycling guarantee toll-free 800 number stamped on back collected directly from customer sites
recycled in nylon 6 recycling facility
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Shaw Industries carpet recycling (commercial)
commercialcustomerlocation
depolymerizingfacility
directshipping
Shawholding
warehouse
recycled nylon 6
carpet fiber
inventoryholding
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Tradeoffs: making it work for you
Motivators
Type of product
Customer relationships
Government mandate
Testing costs
Third-party providersProprietary knowledge
Reverse logistics supply chain