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The Role of Reverse Logistics in a Circular Economy

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Chris Cloutier

The circular economy aims to reduce waste by designing products for reuse and recycling. Reverse logistics plays a key role by collecting, refurbishing, and redistributing products to keep them in use longer. Lessons from reverse logistics can help optimize circular economy systems for collecting, analyzing, and finding value in returned products. The reverse logistics industry's experience makes it well-positioned to inform and support the continued development of the circular economy model.

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Serving Manufacturers, Retailers, and Service Solutions Providers OFFICIAL MAGAZINE OF THE Edition 93 Reduce Your Lifetime Buy (LTB) by 10X
2 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com Issue 12 Volume 5 The Rise of Refurbished Electronics Marketplaces By Varun R. Thakur, Senior Marketing Manager, Amazon Renewed Mobile carriers have been making a push to encourage consumers to trade-in their older generation phones, offering lucrative offers on newer models. While customers dont give much thought to where the traded-in phones end up, a wave of companies involved in cleaning, repairing, testing, inspecting, grading, repackaging, and reselling are cropping up. ARTICLE PAGE 16 The Top 5 Characteristics of Successful Repair Depot Operations for Product-Based Service Businesses By Tom Devroy, Senior Product Evangelist, Service Management, IFS Managing reverse logistics and depot repair, or all operations related to the reuse of products and materials, is a growing challenge for B2C and B2B manufacturers, retailers and service organizations. ARTICLE PAGE 26 PAGE 20 The Emerging Circular Economy and Necessity of Reverse Logistics By Chris Cloutier, Director of Sustainability for CoreCentric Solutions Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. ARTICLE PAGE 30 Reverse Logistics and Circular Economy Values - A Comparison By Adrienna Zsakay, Founder of Circular Economy Asia Inc. A key component for the efficient functioning of the Circular Economy (CE) lies in Reverse Logistics (RL). However if companys interested in transitioning to the CE to extract additional economic value from their material assets (products) believe the current Reverse Logistics systems they have in place will be enough, they may have to think again. ARTICLE CONTENTS PAGE 10 Reduce Your Lifetime Buy (LTB) by 10X By Ken Ueltzen & Mark Anderson of Cokeva, Inc. It is critical to control the cost of service support, especially high dollar mission- critical parts. OEMs are already investing in large inventories of spares to cover diverse locations. Further expense can come when the part(s) is no longer manufactured and a lifetime buy (LTB) is necessary to ensure spares availability through several years of the service support life. ARTICLE Reverse Logistics and Learning Repurposing from Your House Cat By William Oliver Hedgepeth, Transportation and Logistics Ma, at American Public University Reverse logistics is easily confused with the recycling bin that sits beside your trash can. The bins recyclable contents are picked up by a green truck that looks suspiciously like your trash truck. But reverse logistics (RL) is so much more. ARTICLE PAGE 38
4 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com At a recent family reunion, my parents brought their 8mm projector and showed my siblings and their grandchildren some VERY OLD family videos. Wow technology has come A LONG way...but in one of these videos that took place in 1972, my brother is opening a Christmas gift. He ripped the wrapping paper off, and there was this plastic ball toy, with some cardboard packaging on the back of it. My mom lifted one tab, and out fell the ball, and my brother was immediately able to play with the toy. Wow packaging has also come a long way! When my children get toys these days, it takes several minutes, and often tools, to get the toy out of the packaging. Theres often layers of plastic within cardboard, with tape, tabs, twist ties, stitches and even screws, and all usually within a thick clam shell that takes scissors, a box cutter or razor blade to get through. Of course there are a few reasons for this intense packaging. 1. Security: unfortunately theft is an issue for retailers, and having complex packaging helps prevent items from being easily stolen. 2. Marketing: giving the consumer the opportunity to see the whole toy and try it before they buy it is usually desired by the buyer. And 3. Shipping: Often these toys are manufactured overseas and need to be shipped by boat, then truck, and handlers and need to be kept safe from being damaged en route. So whats the answer? Ive recently come across two videos online that could help: The first video was from LimeLoop about reusable packaging. Video 1 Saving trees and preventing trash: This is a circular way of thinking! The second video was from Amazon on sustainable packaging for e-commerce products: Video 2 When items are shipped by on-line shopping, two of those three factors mentioned previously are not relevant. So e-commerce items can be packaged differently. Just imagine the amount of trash that would be prevented with both of these concepts being utilized! I hope to start seeing these changes and others implemented in the near future. Felecia Przybyla RL Magazine Editor Editor@rla.org Message Editor from the OUR MISSION The Reverse Logistics Association is a members driven, global trade association for the returns and reverse industry, offering information, research, solutions and services for Manufacturers, Branded, and Retail companies from Third Party Providers. Our goals are to educate and inform Reverse Logistics professionals around the world, and be the voice of the reverse industry.
20 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com ABSTRACT Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. As sustainability takes root in organizations around the world, theyre looking to develop more refined strategies to help them find new solutions for issues related to material consumption and disposition. Increasingly, the circular economy is emerging as the preferred strategy for many organizations a fact that is being emphasized through a variety of medium including the February 2018 RLA meeting in Las Vegas and a recent edition of Reverse Logistics magazine, which included several articles on reverse logistics and the circular economy. This article takes a somewhat different approach, looking more closely at some of the key principles of a circular economy and how reverse logistics is not only essential to its success, but how it can help accelerate and optimize the adoption and implementation of a circular economy. THE CASE FOR A CIRCULAR ECONOMY Currently, most commerce is predicated on a take, make, dispose model that extracts and uses natural resources in the manufacture of a product that is used and then commonly disposed of, thus the term throwaway economy. Image 11 : Illustration of Take, Make, Dispose The circular economy looks to disrupt this model throughtherenewalandreuseofproducts.Asexplained by The Ellen McArthur Foundation, a circular economy aims to redefine products and services to design waste out, while minimizing negative impacts.2 At its core, a circular economy is based on three basic principles3 : Design out waste and pollution Keep products and materials in use Regenerate natural systems The Emerging Circular Economy and Necessity of Reverse Logistics By Chris Cloutier, Director of Sustainability for CoreCentric Solutions
21www.RLmagazine.com Edition 93 | Reverse Logistics Magazine
22 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com As with most disruptive activity, there is a significant financial opportunity but also an equally compelling opportunity for the preservation of natural resources in the adoption of a circular economy. In fact, the Ellen McArthur Foundation and the World Economic Forum reported in 2014 that the circular economy can generate $1T globally by 20254 . Not surprisingly, a circular system is more complex and requires significant innovation. The Ellen McArthur Foundation illustrates a circular economy as: Image 25 : Illustration of a Circular Economy While a circular economy model is more dynamic and complex than the take, make, dispose model, its important to note that many of the essential elements of a circular economy already exist in one form or another. Moving forward, the challenge will be to not only optimize existing systems but also build new ones to recover and re-purpose more products and material. One example is Extended Producer Responsibility (EPR), where product manufacturers are required by law to provide take-back processes at the end of a products life cycle. While this practice is more common in Europe, it does exist in the United States, particularly within the electronics industry. The circular economy approach takes the next step and encourages manufacturers to think about a cradle to cradle system where products or parts are refurbished whenever possible. A recent white paper, Circular Consumer Electronics: An Initial Exploration, by Google and the Ellen McArthur Foundation imagines and explores a more robust circular system for consumer electronics. The report found that such a system should have four key elements: Electronic devices are loved for longer, by one user or by many Devices are a gateway to the cloud
23www.RLmagazine.com Edition 93 | Reverse Logistics Magazine 2018 AMSTERDAM OCTOBER 15-17, 2018 AMSTERDAM, THE NETHERLANDS EUROPEAN BASED REVERSE LOGISTICS PROFESSIONALS AND COMPANIES WILL BE IN ATTENDANCE The Reverse Logistics Association Conference & Expo will kick off with a Monday Evening Reception. Then two full days will include the opening of the exhibit hall, Keynote Addresses and panel discussions, and several networking opportunities. A wide range of Reverse Logistics companies will be in attendance from repair/refurbishing to recycling/e-waste and transportation logistics. This is a rich opportunity for OEMs, Retailers, and Branded companies to identify future service partners among the many exhibitors showcasing their Reverse Logistics solutions. KEYNOTE SPEAKER: Katarzyna Michniewska of Eko Cykl THREE DAYS OF REVERSE LOGISTICS EDUCATION, LEADERSHIP, INNOVATION AND NETWORKING! For more information, visit: www.RLAShows.org
24 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com Customers get the service thats right for them Products and components are cascaded6 THE NECESSITY OF REVERSE SYSTEMS IN A CIRCULAR ECONOMY Reverse systems are an essential part of existing and new circular economy systems. The Ellen McArthur Foundation agrees, citing reverse cycles as a key building block in a circular economy. Specifically, they highlight theneedforsystemsthatcaptureandsegmentproducts at end-of-life with the intention of keeping salvageable materials and products in the circular system, allowing a higher level of material recovery and use.7 Reverse logistics done well directly addresses two of the three key principles laid out by the Ellen McArthur Foundation design out waste and keep products and materials in use. In the illustration above, it is clear that reverse systems are a necessary component of any circular economy systems and are already helping achieve the first element identified in the Circular Consumer Electronics white paper electronic devices are loved for longer, by one user or many. As a sector, the reverse logistics industry has a unique opportunity to help inform and support a circular economy. To help meet the principle of designing out waste, reverse logistics provides feedback on product quality including common failure modes which can be critical in helping manufacturers lower product return rates by improving quality and performance in the development stage. Product designers start out looking to create a product that produces a certain outcome or meets certain specifications. An engineer analyzing product performance from failed products has an entirely different perspective this forensics examination of the product can reveal systemic/design issues that regularly lead to failures and thus produce waste. By empowering the critical product functionality feedback loop, reverse logistics can help improve product performance, reduce waste, decrease returns and improve customer satisfaction. All leading to a healthier bottom line and stronger brand loyalty. Additionally, reverse logistics help keep products and materials in use by working to maximize the number of products recovered, restored and re- used. Furthermore, reverse logistics companies have advanced material recovery systems for products that are not able to be recovered and re-sold for their original use. By providing efficient, effective catch basins for unwanted, damaged or returned products, the reverse logistics industry works to ensure that existing products and their component parts achieve the longest, most economically valuable life possible. A closer examination of the circular economy illustration reveals that collection is the lynch-pin for multiple steps in the system, specifically Share; Maintain/ Prolong, Reuse/Redistribute, Refurbish/Remanufacture and Recycle. While different reverse logistics firms have different capacities and capabilities, a look across the industry reveals that every reverse logistics firm contributes to one or more of these activities. In fact, this illustration neatly captures what the reverse logistics industry is already doing while highlighting the implicit challenge of continuing to grow these systems. Finally, in looking at the four requirements for a circular consumer electronics system, reverse logistics will be necessary for products to be loved by more than one user and to ensure that products and components are cascaded. While individuals can and do sell used consumer electronics, its not reasonable to expect this to be the primary way the goal is achieved. Rather, as demonstrated by multiple consumer electronics OEMs, such as Acer, Dell and HP, developing reverse systems that capture product and provide it a second (or third) life as a refurbished or remanufactured product is not only possible, but profitable. However, to assure that products and components are cascaded that is, they go from high-end new or lower- end used to recovered and recycled reverse systems are critical to ensure proper collection and redistribution at every level to maximize the life of the product. LESSONS FROM REVERSE LOGISTICS Reverse logistics firms have decades of experience in collecting, handling, triaging and bringing products back into the commerce stream. As an industry, the reverse logistics sector can help accelerate the adoption and optimization of a circular economy system by sharing the lessons learned both successes and challenges associated with: Collecting and aggregating products Analyzing and triaging returned products to
25 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com determine if they should be cascaded for another use or broken down into its component parts Finding and maximizing value for cascaded products Maximizing recovery and value of component parts Marketing and messaging the value of refurbished and remanufactured products. The Reverse Logistics Association (RLA) is a vital platform for this exchange. By bringing experienced reverse logistics professionals together with circular economy theorists and practitioners, the RLA can help assure critical topics are addressed and explored making that information readily available to a larger audience. Reverse logistics has a fundamental and essential role in the development of a circular economy. As an industry, there is an opportunity to engage and work with those developing circular economy practices to help inform and educate them on the important lessons we have learned and continue to learn. 1 http://www.ncps-care.eu/wp-content/uploads/2016/09/flux_waste.png 2 https://www.ellenmacarthurfoundation.org/circular-economy 3 https://www.ellenmacarthurfoundation.org/circular-economy/overview/ concept 4 https://www.ellenmacarthurfoundation.org/publications/towards-the- circular-economy-vol-3-accelerating-the-scale-up-across-global-supply- chains 5 https://www.ellenmacarthurfoundation.org/circular-economy/ interactive-diagram 6 https://www.ellenmacarthurfoundation.org/assets/downloads/Circular- Consumer-Electronics-2704.pdf 7 https://www.ellenmacarthurfoundation.org/circular-economy/building- blocks ABOUT THE AUTHOR Chris Cloutier is the Director of Sustainability for CoreCentric Solutions. Mr. Cloutier has over 20 years experience in green and sustainability issues, including in-depth subject- matter expertise in waste and resource utilization and green energy and energy efficiency. Prior to joining CoreCentric Mr. Cloutier has worked for and consulted for, Best Buy, Sears Holding, Grainger, the US EPA, the US DOE, the DesignLights Consortium and Black Decker, the States of California, Minnesota, Oregon, Washington and Wisconsin.

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The Role of Reverse Logistics in a Circular Economy

  • 1. Serving Manufacturers, Retailers, and Service Solutions Providers OFFICIAL MAGAZINE OF THE Edition 93 Reduce Your Lifetime Buy (LTB) by 10X
  • 2. 2 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com Issue 12 Volume 5 The Rise of Refurbished Electronics Marketplaces By Varun R. Thakur, Senior Marketing Manager, Amazon Renewed Mobile carriers have been making a push to encourage consumers to trade-in their older generation phones, offering lucrative offers on newer models. While customers dont give much thought to where the traded-in phones end up, a wave of companies involved in cleaning, repairing, testing, inspecting, grading, repackaging, and reselling are cropping up. ARTICLE PAGE 16 The Top 5 Characteristics of Successful Repair Depot Operations for Product-Based Service Businesses By Tom Devroy, Senior Product Evangelist, Service Management, IFS Managing reverse logistics and depot repair, or all operations related to the reuse of products and materials, is a growing challenge for B2C and B2B manufacturers, retailers and service organizations. ARTICLE PAGE 26 PAGE 20 The Emerging Circular Economy and Necessity of Reverse Logistics By Chris Cloutier, Director of Sustainability for CoreCentric Solutions Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. ARTICLE PAGE 30 Reverse Logistics and Circular Economy Values - A Comparison By Adrienna Zsakay, Founder of Circular Economy Asia Inc. A key component for the efficient functioning of the Circular Economy (CE) lies in Reverse Logistics (RL). However if companys interested in transitioning to the CE to extract additional economic value from their material assets (products) believe the current Reverse Logistics systems they have in place will be enough, they may have to think again. ARTICLE CONTENTS PAGE 10 Reduce Your Lifetime Buy (LTB) by 10X By Ken Ueltzen & Mark Anderson of Cokeva, Inc. It is critical to control the cost of service support, especially high dollar mission- critical parts. OEMs are already investing in large inventories of spares to cover diverse locations. Further expense can come when the part(s) is no longer manufactured and a lifetime buy (LTB) is necessary to ensure spares availability through several years of the service support life. ARTICLE Reverse Logistics and Learning Repurposing from Your House Cat By William Oliver Hedgepeth, Transportation and Logistics Ma, at American Public University Reverse logistics is easily confused with the recycling bin that sits beside your trash can. The bins recyclable contents are picked up by a green truck that looks suspiciously like your trash truck. But reverse logistics (RL) is so much more. ARTICLE PAGE 38
  • 3. 4 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com At a recent family reunion, my parents brought their 8mm projector and showed my siblings and their grandchildren some VERY OLD family videos. Wow technology has come A LONG way...but in one of these videos that took place in 1972, my brother is opening a Christmas gift. He ripped the wrapping paper off, and there was this plastic ball toy, with some cardboard packaging on the back of it. My mom lifted one tab, and out fell the ball, and my brother was immediately able to play with the toy. Wow packaging has also come a long way! When my children get toys these days, it takes several minutes, and often tools, to get the toy out of the packaging. Theres often layers of plastic within cardboard, with tape, tabs, twist ties, stitches and even screws, and all usually within a thick clam shell that takes scissors, a box cutter or razor blade to get through. Of course there are a few reasons for this intense packaging. 1. Security: unfortunately theft is an issue for retailers, and having complex packaging helps prevent items from being easily stolen. 2. Marketing: giving the consumer the opportunity to see the whole toy and try it before they buy it is usually desired by the buyer. And 3. Shipping: Often these toys are manufactured overseas and need to be shipped by boat, then truck, and handlers and need to be kept safe from being damaged en route. So whats the answer? Ive recently come across two videos online that could help: The first video was from LimeLoop about reusable packaging. Video 1 Saving trees and preventing trash: This is a circular way of thinking! The second video was from Amazon on sustainable packaging for e-commerce products: Video 2 When items are shipped by on-line shopping, two of those three factors mentioned previously are not relevant. So e-commerce items can be packaged differently. Just imagine the amount of trash that would be prevented with both of these concepts being utilized! I hope to start seeing these changes and others implemented in the near future. Felecia Przybyla RL Magazine Editor Editor@rla.org Message Editor from the OUR MISSION The Reverse Logistics Association is a members driven, global trade association for the returns and reverse industry, offering information, research, solutions and services for Manufacturers, Branded, and Retail companies from Third Party Providers. Our goals are to educate and inform Reverse Logistics professionals around the world, and be the voice of the reverse industry.
  • 4. 20 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com ABSTRACT Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. Developing a circular economy is a growing movement aimed at reducing the environmental impact of products that are manufactured, sold and used. The reverse logistics industry is not only essential to the evolution of a circular economy, it has important lessons to offer this burgeoning movement. As sustainability takes root in organizations around the world, theyre looking to develop more refined strategies to help them find new solutions for issues related to material consumption and disposition. Increasingly, the circular economy is emerging as the preferred strategy for many organizations a fact that is being emphasized through a variety of medium including the February 2018 RLA meeting in Las Vegas and a recent edition of Reverse Logistics magazine, which included several articles on reverse logistics and the circular economy. This article takes a somewhat different approach, looking more closely at some of the key principles of a circular economy and how reverse logistics is not only essential to its success, but how it can help accelerate and optimize the adoption and implementation of a circular economy. THE CASE FOR A CIRCULAR ECONOMY Currently, most commerce is predicated on a take, make, dispose model that extracts and uses natural resources in the manufacture of a product that is used and then commonly disposed of, thus the term throwaway economy. Image 11 : Illustration of Take, Make, Dispose The circular economy looks to disrupt this model throughtherenewalandreuseofproducts.Asexplained by The Ellen McArthur Foundation, a circular economy aims to redefine products and services to design waste out, while minimizing negative impacts.2 At its core, a circular economy is based on three basic principles3 : Design out waste and pollution Keep products and materials in use Regenerate natural systems The Emerging Circular Economy and Necessity of Reverse Logistics By Chris Cloutier, Director of Sustainability for CoreCentric Solutions
  • 5. 21www.RLmagazine.com Edition 93 | Reverse Logistics Magazine
  • 6. 22 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com As with most disruptive activity, there is a significant financial opportunity but also an equally compelling opportunity for the preservation of natural resources in the adoption of a circular economy. In fact, the Ellen McArthur Foundation and the World Economic Forum reported in 2014 that the circular economy can generate $1T globally by 20254 . Not surprisingly, a circular system is more complex and requires significant innovation. The Ellen McArthur Foundation illustrates a circular economy as: Image 25 : Illustration of a Circular Economy While a circular economy model is more dynamic and complex than the take, make, dispose model, its important to note that many of the essential elements of a circular economy already exist in one form or another. Moving forward, the challenge will be to not only optimize existing systems but also build new ones to recover and re-purpose more products and material. One example is Extended Producer Responsibility (EPR), where product manufacturers are required by law to provide take-back processes at the end of a products life cycle. While this practice is more common in Europe, it does exist in the United States, particularly within the electronics industry. The circular economy approach takes the next step and encourages manufacturers to think about a cradle to cradle system where products or parts are refurbished whenever possible. A recent white paper, Circular Consumer Electronics: An Initial Exploration, by Google and the Ellen McArthur Foundation imagines and explores a more robust circular system for consumer electronics. The report found that such a system should have four key elements: Electronic devices are loved for longer, by one user or by many Devices are a gateway to the cloud
  • 7. 23www.RLmagazine.com Edition 93 | Reverse Logistics Magazine 2018 AMSTERDAM OCTOBER 15-17, 2018 AMSTERDAM, THE NETHERLANDS EUROPEAN BASED REVERSE LOGISTICS PROFESSIONALS AND COMPANIES WILL BE IN ATTENDANCE The Reverse Logistics Association Conference & Expo will kick off with a Monday Evening Reception. Then two full days will include the opening of the exhibit hall, Keynote Addresses and panel discussions, and several networking opportunities. A wide range of Reverse Logistics companies will be in attendance from repair/refurbishing to recycling/e-waste and transportation logistics. This is a rich opportunity for OEMs, Retailers, and Branded companies to identify future service partners among the many exhibitors showcasing their Reverse Logistics solutions. KEYNOTE SPEAKER: Katarzyna Michniewska of Eko Cykl THREE DAYS OF REVERSE LOGISTICS EDUCATION, LEADERSHIP, INNOVATION AND NETWORKING! For more information, visit: www.RLAShows.org
  • 8. 24 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com Customers get the service thats right for them Products and components are cascaded6 THE NECESSITY OF REVERSE SYSTEMS IN A CIRCULAR ECONOMY Reverse systems are an essential part of existing and new circular economy systems. The Ellen McArthur Foundation agrees, citing reverse cycles as a key building block in a circular economy. Specifically, they highlight theneedforsystemsthatcaptureandsegmentproducts at end-of-life with the intention of keeping salvageable materials and products in the circular system, allowing a higher level of material recovery and use.7 Reverse logistics done well directly addresses two of the three key principles laid out by the Ellen McArthur Foundation design out waste and keep products and materials in use. In the illustration above, it is clear that reverse systems are a necessary component of any circular economy systems and are already helping achieve the first element identified in the Circular Consumer Electronics white paper electronic devices are loved for longer, by one user or many. As a sector, the reverse logistics industry has a unique opportunity to help inform and support a circular economy. To help meet the principle of designing out waste, reverse logistics provides feedback on product quality including common failure modes which can be critical in helping manufacturers lower product return rates by improving quality and performance in the development stage. Product designers start out looking to create a product that produces a certain outcome or meets certain specifications. An engineer analyzing product performance from failed products has an entirely different perspective this forensics examination of the product can reveal systemic/design issues that regularly lead to failures and thus produce waste. By empowering the critical product functionality feedback loop, reverse logistics can help improve product performance, reduce waste, decrease returns and improve customer satisfaction. All leading to a healthier bottom line and stronger brand loyalty. Additionally, reverse logistics help keep products and materials in use by working to maximize the number of products recovered, restored and re- used. Furthermore, reverse logistics companies have advanced material recovery systems for products that are not able to be recovered and re-sold for their original use. By providing efficient, effective catch basins for unwanted, damaged or returned products, the reverse logistics industry works to ensure that existing products and their component parts achieve the longest, most economically valuable life possible. A closer examination of the circular economy illustration reveals that collection is the lynch-pin for multiple steps in the system, specifically Share; Maintain/ Prolong, Reuse/Redistribute, Refurbish/Remanufacture and Recycle. While different reverse logistics firms have different capacities and capabilities, a look across the industry reveals that every reverse logistics firm contributes to one or more of these activities. In fact, this illustration neatly captures what the reverse logistics industry is already doing while highlighting the implicit challenge of continuing to grow these systems. Finally, in looking at the four requirements for a circular consumer electronics system, reverse logistics will be necessary for products to be loved by more than one user and to ensure that products and components are cascaded. While individuals can and do sell used consumer electronics, its not reasonable to expect this to be the primary way the goal is achieved. Rather, as demonstrated by multiple consumer electronics OEMs, such as Acer, Dell and HP, developing reverse systems that capture product and provide it a second (or third) life as a refurbished or remanufactured product is not only possible, but profitable. However, to assure that products and components are cascaded that is, they go from high-end new or lower- end used to recovered and recycled reverse systems are critical to ensure proper collection and redistribution at every level to maximize the life of the product. LESSONS FROM REVERSE LOGISTICS Reverse logistics firms have decades of experience in collecting, handling, triaging and bringing products back into the commerce stream. As an industry, the reverse logistics sector can help accelerate the adoption and optimization of a circular economy system by sharing the lessons learned both successes and challenges associated with: Collecting and aggregating products Analyzing and triaging returned products to
  • 9. 25 Reverse Logistics Magazine | Edition 93 www.RLmagazine.com determine if they should be cascaded for another use or broken down into its component parts Finding and maximizing value for cascaded products Maximizing recovery and value of component parts Marketing and messaging the value of refurbished and remanufactured products. The Reverse Logistics Association (RLA) is a vital platform for this exchange. By bringing experienced reverse logistics professionals together with circular economy theorists and practitioners, the RLA can help assure critical topics are addressed and explored making that information readily available to a larger audience. Reverse logistics has a fundamental and essential role in the development of a circular economy. As an industry, there is an opportunity to engage and work with those developing circular economy practices to help inform and educate them on the important lessons we have learned and continue to learn. 1 http://www.ncps-care.eu/wp-content/uploads/2016/09/flux_waste.png 2 https://www.ellenmacarthurfoundation.org/circular-economy 3 https://www.ellenmacarthurfoundation.org/circular-economy/overview/ concept 4 https://www.ellenmacarthurfoundation.org/publications/towards-the- circular-economy-vol-3-accelerating-the-scale-up-across-global-supply- chains 5 https://www.ellenmacarthurfoundation.org/circular-economy/ interactive-diagram 6 https://www.ellenmacarthurfoundation.org/assets/downloads/Circular- Consumer-Electronics-2704.pdf 7 https://www.ellenmacarthurfoundation.org/circular-economy/building- blocks ABOUT THE AUTHOR Chris Cloutier is the Director of Sustainability for CoreCentric Solutions. Mr. Cloutier has over 20 years experience in green and sustainability issues, including in-depth subject- matter expertise in waste and resource utilization and green energy and energy efficiency. Prior to joining CoreCentric Mr. Cloutier has worked for and consulted for, Best Buy, Sears Holding, Grainger, the US EPA, the US DOE, the DesignLights Consortium and Black Decker, the States of California, Minnesota, Oregon, Washington and Wisconsin.