Assignment
Reverse logistics and recycling programs are ripe with opportunity for every industry to improve its triple bottom line. Although the concepts have been around for quite some time, they are just recently getting the focused attention that can result in gains across the spectrum. Reverse logistics help companies reduce costs, environmental impact, and improve their social caretaking by capitalizing on the reuse piece of reduction. Reverse logistics provide an avenue for companies to reclaim goods (either as returns or at the end of their life cycle) and reuse many of the materials for future production or refurbishment. Recycling is another opportunity for cost cutting, environmental stewardship, and social improvement for companies and consumers. Recycling can be company, consumer, or government driven and focuses on reclaiming the material of goods that may not have an opportunity for reuse. Milk cartons, for example, cannot be refilled directly and reused, but the material can be recycled and used again in other applications. To maximize these returns, goods must be properly classified and infrastructure has to be in place to facilitate operations. Governmental organizations have historically provided much of the infrastructure and incentive for these programs, but the pendulum may be swinging toward private actors in the near future.
Reverse logistics capitalize on the reuse and refurbish concepts of reducing impact. Whether it is through consumer returns or reclamation of products near the end of a closedloop supply chain, reverse logistics reintroduce material and goods, thereby reducing consumption. The benefits can be significant across the triple bottom line as reverse logistics will cut costs, reduce waste, and improve a company's social footprint. Once the initial infrastructure, procedures, and personnel are put into place, the return on investment can be quick for some manufacturing industries. Those companies that may not be able to take advantage of reverse logistics still have the option to recycle, which has similar benefits.
Recycling can be beneficial in a corporate environment when the end product is unable or unsuitable to be reused. Coca-Cola has implemented a program that uses trash receptacles to conveniently recycle its product packaging. The receptacles are convenient for consumers and cut the cost and raw material demand of future Coca-Cola packaging requirements. For minimal investment, Coca-Cola has enhanced its triple bottom line with a program that boosts its reputation with consumers. Another avenue for recycling gain is at the manufacturing point itself. By-products and waste from manufacturing can be recycled onsite to mitigate waste charges and reduce future raw material demand. This facet of recycling supports closed-loop supply chains while improving the triple bottom line in all three aspects.
As the benefits of reverse logistics and recycling programs become more apparent, the need for extensive government regulation and incentives may begin to dwindle. There are clearly benefits to both programs when successfully implemented in a supportive environment. Entire industries, such as automotive parts refurbishment, are based on reverse logistics and have been very profitable while reducing environmental and social impacts. Other industries, especially those with smaller companies, may face barriers in terms of financial gain and infrastructure to truly implement a program at the scale that makes sense. Therefore, consumer pressure and government regulation will remain important even while the necessity of their involvement is decreasing.
Reverse logistics and recycling programs make sense in most of today's economies. The movement to reduce, reuse, and recycle is one that brings financial, environmental, and social benefits. While regulatory guidance has been a primary motivator, there are indications that industry and consumers are both seeing the benefits to implementing these programs. Operations professionals need to assess the possibilities within their sector and convey the wide array of gains that a company can achieve with their use. Module Seven moves away from reverse logistics and recycling and discusses corporate social responsibility and ethics.
Task
1. How can companies, governments, and consumers be motivated to reduce, reuse, and recycle?
2. What is the motivation for industry to participate? Does a balanced triple bottom line ultimately benefit the company if it is losing money?
3. How extensive a role should governmental regulation play in mandating green supply chains?
4. Considering your own values regarding recycling, what motivates you to recycle or not recycle?
5. Finally, what strategy would you like to see implemented regarding green supply chains?