COSTHA ANNUAL FORUM 2008 March 11 – 13th

St. Petersburg, Florida

COSTHA

© 2007

What is “Reverse What is “Reverse Logistics”? Logistics”?

Definition:

The return of purchased goods for any reason

COSTHA

© 2007

Who receives these Who receives these returned goods?returned goods?

ManufacturerVendorDistributorShipperRetail StoreSales Department

COSTHA

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Reasons for return:Reasons for return:

DamageDefectiveMalfunctionObsolescence

Out of Business Product recallWrong deliveryOther

Sources of Reverse Logistics

Hardware

Building supply

Grocery

Pharmacy

Department store

Specialty Boutiques

Convenience stores

“Big Box store”

Other?

Independent sales agents

Catalog sales & Warehouses

Recall coordinators

Auto, ATV, Motorcycle Dealers

Marinas, Parts Stores

COSTHA

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Benefits of Return LogisticsBenefits of Return Logistics

Incident control

Verification of return or replacement

Investigate product failure

Quality control

COSTHA

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Benefits of Return Logistics Benefits of Return Logistics

Recycling or remanufacturing

Limit waste generation

Ensure proper disposal (“Green initiative”)

COSTHA

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Can these be hazardous Can these be hazardous materials?materials?

YES!In most cases, products entering reverse transport need to be shipped in accordance with regulations governing the safe transport of dangerous goods.

COSTHA

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Common commodities Common commodities found in found in “Reverse Logistics” “Reverse Logistics”

Perfumes and fragrances

Cosmetics

Paints and coatings (including pails, cans, nail care)

Construction Adhesives

Aerosols Paints, Insecticides Household cleaners Automotive products Adhesives Solvents

Battery operated electronics

Gasoline fueled equipment & Internal combustion engines Chain saws, Weed whackers Generators Power washers Auto, Boat, ATV, Motorcycle Replacement parts

Camping Equipment Fuels (Propane, gas, sterno, etc.)

Stoves Heaters Lanterns

COSTHA

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Transportation is RegulatedTransportation is Regulated

Pipeline and Hazardous Materials Safety Administration

(PHMSA)

a department of the

US Department of Transportation(DOT)

COSTHA

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How Reverse Logistics Works:How Reverse Logistics Works:

Preparation for Transport:

“Hazmat employee” §171.8 and Part 172, Subpart H

COSTHA

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How Reverse Logistics Works:How Reverse Logistics Works:

Packaging used:

SpecificationOverpacksSalvage/emergencyExemption/SP Packaging

COSTHA

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How Reverse Logistics Works:How Reverse Logistics Works:

USPS Air ExpressCommon carrier Private carrier

COSTHA

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DOT/PHMSA’s position:DOT/PHMSA’s position:

“Regulation alone is not enough to fulfill our safety mission. We rely on partners, like COSTHA members, to help protect the public and the environment from careless or non-compliant shipments”

“The partnership we are entering willdevelop and introduce practical safety solutions that work for the public and the regulated industry.”

COSTHA

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COSTHA’s ROLE in REVERSE COSTHA’s ROLE in REVERSE LOGISTICS:LOGISTICS:

“The industry has established an excellent safety record for regulatory compliance and safety in the distribution of hazardous materials.”

COSTHA

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COSTHA’s ROLE in REVERSE COSTHA’s ROLE in REVERSE LOGISTICS:LOGISTICS:

“We now need to examine the reverse logistics process where:

• the person packing the returns may not be a trained hazmat employee;

• the packaging may not be the same as when it was originally shipped;

• the person preparing the returns may not be aware of the hazards associated with transportation.”

COSTHA

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Win – Win Outcome:Win – Win Outcome:

“Through this partnership, COSTHA and PHMSA can openly discuss the issues and provide solutions to enhance transportation safety”

COSTHA

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Goals and objectives:Goals and objectives:

Obtain industry input at:

• organized workshops• discussion groups• meetings • forums

COSTHA

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Goals and objectives:Goals and objectives:

Team with PHMSA in a creative process to:

Develop acceptable and achievable standards

COSTHA

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Desired Outcomes:Desired Outcomes:

Assessment of the reverse logistics issue

Introduce standards and guidelines

Implement systems

Identify required resources to control transport risk

Incident prevention

COSTHA

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Moving Forward with Reverse Logistics:Moving Forward with Reverse Logistics:

WHO? - COSTHA Members - Non-members

WHAT? - Identify funding needs and resources - Education and Outreach

WHERE? - Scheduled meetings – COSTHA, DOT

COSTHA The COSTHA partnership with PHMSA is a commitment to moving this initiative forward

COME JOIN US!

COSTHA

© 2007

QUESTIONS? QUESTIONS?

Contact Information:

COSTHA7803 Hill House Court Fairfax Station, VA 22039Phone: 703/451-4031 Fax: 703/451-4207Email: mail@costha.com

Presentation creatively designed by H.Skolnik and R.Jessop