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Edition 76 OFFICIAL MAGAZINE OF THE Serving the Health Sciences, Retail, and High Tech Industries Retailers Get Help With New DOT Reverse Logistics Rules

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Edition 76official magazine of the

Serving the health Sciences, Retail, and high tech industries

Retailers Get Help With New DOT Reverse Logistics Rules

2 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

Issue 10 Volume 1

Articles

RLA Label Standards to Become an ISO Standardby Ken Jacobsen

If you’ve even questioned the value of attending trade shows, this story justifies the time. Executive Director Gailen Vick and Standards Committee Chairperson, Dr. Ron Lembke both attended the Reverse Logistics Conference and Exposition in Atlanta last April. We combined our show with Supply Chain and Transportation and the Modex shows bringing over 30,000 logistics professionals together.

Page 22

Reuse is the Future of Electronics Recyclingby Gay Gordon-Byrne A lot of attention is paid to electronics recycling as being “good” for the environment. Recycling is not “Good” as a goal – it’s an admission of defeat. Recycling is a necessary final process to deal with the last scraps of products that can no longer stay in use. Page 16

Four Important Benefits of a Sustainable Reverse Logistics Strategy by Adam Robinson, Cerasis

Business owners face endless decisions throughout all aspects of the supply chain. Businesses must decide which routes to use, where to manufacture products, and whether to employ the use of a third party logistics provider. However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverse logistics).

Page 28

Cover Article

Page 10

Retailers Get Help With New DOT “Reverse Logistics” Rulesby Roger Marks, Lion Technology, Inc.

In March of this year, the US Department of Transportation (DOT) finalized streamlined, simplified hazmat shipping rules for retail stores. The new rules will help retailers who return products to a manufacturer or supplier for a refund, a process known as “reverse logistics” or “return-to-vendor” (RTV) shipping.

Edition 76 • Reverse Logistics Magazine 3www.RLmagazine.com

Publisher – Tony Sciarrottaeditor – Felicia Przybylanews media – Alex Spasicmagazine Production & graphic artist – Benjamin Trokey

Board of advisorsDr. Mark Ferguson – University of South CarolinaJames H. Hunt IV – GENCO/FedExCharles Johnston – Home DepotTroy Kubat – WalmartThomas Maher – DellMonica Orlando – Hewlett-Packard CompanyVijay Raisinghani – GoogleFor more information on the Board of Advisors, go to RLA.org editorial and circulation office441 W. Main Suite DLehi, UT 84043-2024Phone: 801-331-8949Fax: [email protected] BPA Worldwide Membership May 2010. Printed in the U.S.A.

ISSUE 10 VOLUME 1REVERSE LOGISTICS MAGAZINE (ISSN 1934-3698) is published monthly for $5.00/per year by Reverse Logistics Association.iTunes In-App Purchase: $4.99Amazon Kindle Monthly Subscription $1.49

Edition 76 published October 2016.

The information presented in this publication has been provided by corporations and is believed to be accurate; the publisher cannot assure its completeness or accuracy.

Articles

Go to RLmagazine.com. Individual subscriptions are available without charge to qualified individuals.

Non-qualified rates are as follows: One Year Subscriptions: Global: $5.00

To unsubscribe email: [email protected]

Video

Page 25

What is the Reverse Logistics Association?by Reverse Logistics Association

RL Magazine is available on these E-Readers:

RL Magazine will publish 12 issues annually — 12 new digital editions! Reverse Logistics Magazine welcomes articles and abstracts. Please send to: [email protected]

iPad iPhoneKindle Android

FeaturesMessage from the Editor 4

Focus Committees 5

Advisory Board 7

Industry Committees 8

Regional Chapters 11

Read the Press 19

Industry Events 26

Industry Jobs 30

Advertiser Index 39

Meeting Customer Expectationsby Norman Brouillette, VP & GM of Technology and Healthcare, Ryder System, Inc.

Reverse logistics has become a mainstay for a number of companies across various industries, from consumer electronics to aerospace and manufacturing. In an Aberdeen survey, 89 percent of respondents said that effective reverse logistics management is either “extremely important” or “very important” to the overall customer experience.

Page 32

4 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

Call for ArticlesA couple of times each year, the Reverse Logistics Association puts out a notice for a Call for Stories and Articles for our magazine. We know that there is so much information out there, but we need it sent our way. If you have a white paper, recent information, or a good RL story to share with the rest of the Reverse Logistics world, please get in contact with me.

Here are our Author Guidelines for your review. But if you’re not sure, please inquire, and we can work together to make a great piece for our Reverse Logistics Magazine.

AUTHOR GUIDELINES:Reverse Logistics Magazine is published digitally monthly. Our readers are senior and mid-level managers responsible for the reverse logistics activities within their companies. Readers also include educators and management consultants who need to keep current with the latest reverse logistics trends.

Examples of Types of Articles:Reverse Logistics Magazine welcomes articles on innovative reverse logistics techniques, new research findings, instructive company case studies, ‘how to’ articles, and practical application stories.

Article Preparation Checklist:When submitting articles, please use the following guidelines:

• Aim for an article length of 2000(cover story), 1500, 1000 or 750words.

• Include a title of the article alongwith a brief abstract highlighting the key points.

• Include a brief biography anddigital photo of the author(s).

Message from the EditorOU

R MI

SSIO

N Our mission is to educate and inform Reverse Logistics professionals

around the world. RLA focuses on the reverse logistics processes across all industries. No matter the industry — High Tech, Consumer Electronics, Automotive, Medical/Pharmaceutical, Food and Beverage, Apparel, or other — our goal is to provide RL process knowledge to all industries. We want to educate everyone about the Reverse Logistics processes that are common to all industries and

to be a catalyst for innovation in developing and implementing new RL processes. We have been and will continue to provide our services to the industry at a moderate price.

Managing the latest information in services such as repair, customer

service, parts management, end-of-life manufacturing, service logistics, field service, returns processing and order fulfillment (just to name a few) can be a little intimidating, to say the least. Yet that is exactly

what the Reverse Logistics Association provides through our membership services. We serve manufacturers and retailers in a variety of settings while offering ongoing updates on market trends, research, mergers and acquisitions and potential outsourcing opportunities to 3PSPs. We have gained the attention of 3PLs like FedEx, DHL, USPS and UPS. 3PSPs like Teleplan, Foxconn, Flextronics, Canon, Sony and Jabil, along with small- and medium-sized service providers have found that

RLA resources help advertise their services to a regional and global audience. OEMs like Microsoft, HP, RIM, and Sony, along with Retailers like Wal-Mart, Canadian Tire, Tesco and Best Buy all participate at our events. Through RLA Events, RLA Connect services and our publications – RL Magazine and the Weekly News Clippings email – we help OEMs, ODMs, Branded and Retail companies find service partners and solutions providers that were previously unknown to them.

(continue on page 6)

Edition 76 • Reverse Logistics Magazine 5www.RLmagazine.com

FOCUS COMMITTEESCORPORATE SOCIAL RESPONSIBILITY• JohnYesensky,Geodis

EXTENDED WARRANTIES• MohanKumarD,Hewlett-Packard

RL CERTIFICATIONChairperson:TonySciarrotta,ReverseItSales&Consulting

Co-Chairperson:JasonMacIver,Dell,Inc.

• MarkFerguson,UniversityofSouthCarolina

• MichelGavaud,Idelog

• JasonMaciver,Dell,Inc.

• ChaimSilberstein,C.S.ConsultingAssociatesInc

SOFTWARE SOLUTIONS

Co-Chairperson:PaulRupnow,AndlorLogisticsSystemsInc

• MichaelAlner,Intel

• BruceBrown,InforMissionSolutionsLLC

• RogerLevi,Intel

• PaulRupnow,AndlorLogisticsSystemsInc

SPARE PARTS MANAGEMENT• MohanKumarD,Hewlett-Packard

• PatrickJoseph,Encompass

• JimScarff,Encompass

• JoseLuisVillalvazo,Hewlett-Packard

• JohnWeatherup,Hewlett-Packard

STANDARDSChairperson:RonLembke,UniversityofNevada

Co-Chairperson:PaulRupnow,AndlorLogisticsSystemsInc

Co-Chairperson:KenJacobsen,Connexus

• MichaelAlner,Intel

• BruceBrown,InforMissionSolutionsLLC

• KenJacobsen,Connexus

• RonLembke,UniversityofNevada

• MariaMolina,PlanITROI

• RafaelMunoz,SkyAngel

• PaulRupnow,AndlorLogisticsSystemsInc

• NicholasSteblay,BestBuy

SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENTChairperson:MariaMolina,PlanITROI

• CintiaGates,Dell,Inc.

• MariaMolina,PlanITROI

• AaronSharar,DynamicITAD

• KennethTurner,Hewlett-Packard

• JohnYesensky,Geodis

Reverse Logistics Association Focus Committees

6 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

• Articlecontentmustbenon-promotional.• Numberandcaptionallexhibits,charts,andtables.• Consecutivelynumberreferencestobooks,articles,orothersources.• IncludeastatementconfirmingthesubmissionisexclusivetoReverse Logistics Magazine• Allgraphicsandimagesshouldbehigh-resolution,300dpi.• Zipallfilesande-mailtothemtotheEditor([email protected]).Forverylargezipfiles,pleaseemailus

([email protected])fortheFTPlogininformation.

EachprospectivearticleisreviewedbymembersofourEditorialAdvisoryBoard.Oureditorswilleditthearticletomaintain a uniform level of consistency and professionalism.

Exclusivityisrequiredforanysubmissiontobeconsideredforpublication.Thearticleshouldnotappearinanotherpublication. It is the author’s responsibility to obtain permission to reprint long quotations or use tables, figures, or graphs previously published with copyright restrictions.

Thank you,Felecia Przybyla [email protected]

DEVOTION

Dad’s been behind him for65marathons.

Team Hoyt

Edition 76 • Reverse Logistics Magazine 7www.RLmagazine.com

REVERSE LOGISTICS ASSOCIATION

Bob Dumais – GENCO/FedEx Business Development, Bob is responsible for business development within GENCO’s Technology Solutions business division and has been a member of the RLA since its original inception. GENCO, A FedEx Company is a leading 3PL supply chain solutions provider focused on delivering robust Forward, and Reverse, logistics solutions to customers across a variety of markets, including Technology, Retail, Consumer, Healthcare and Government sectors.

Dr. Mark Ferguson – University of South Carolina, Dr. Mark Ferguson serves as the Director of the Sustainable Enterprise and Development Initiative. Dr. Ferguson has worked in the reverse logistics area for over ten years; teaching classes on reverse logistics topics, consulting with companies and providing thought leadership of the area through his research.

Charles Johnston – Home Depot, Charles Johnston is Director of Repair and Returns at The Home Depot Chuck was with WAL-MART for the past 14 years and his responsibilities include Returns, Imports, Exports, Tires and Printing and Mailing Distribution.

Troy Kubat - Walmart, Troy is now the Director of Logistics Engineering-Grocery at Walmart having worked is way up from Director, Logistics Operations, Industrial Engineering Manager at Walmart - International Division and Japan Expatriate - Logistics Operations Lead at Walmart - International Division

Thomas Maher - Dell, Tom Maher joined Dell in 1997 and is the Executive Director for Global Service Parts. Mr. Maher is responsible for service parts life cycle support in over 100 countries. Mr. Maher’s global service parts responsibilities include: planning, procurement, distribution, returns, repair, inventory management, supplier management and parts disposal. These

operations support 100% of Dell’s warranty customers across all Business Units and all Product Lines.

Monica Orlando Monica Orlando has over 15 years of experience in Supply Chain designing and managing a variety of complex processes spanning across Planning, Manufacturing, Logistic, Order Fulfilment and Inventory Management. As Director of Channel Operations Monica is responsible for all the supply chain aspects of distributing PCs and Printers to the North America HP Retailers/Distributors, including the reverse logistic processes and programs.

Vijay Raisinghani, Google, Vijay is an expert in end-to-end supply chain and fulfilment strategies and execution that cut costs, drive efficiencies, optimize assets, ensure compliance, generate revenue, and deliver high level of service quality and customer satisfaction. He has an in-depth knowledge of supply chain system functionality, including planning, budgeting, forecasting, replenishment, transportation, and distribution. He has a passion and drive to inspire people and organizations to value every customer, escalate revenue and reduce cost.

Tony Sciarrotta - Reverse Logistics Association, Executive Director, Tony Sciarrotta was nominated and selected by the Board to serve as the Executive Director on August 1, 2016. Since Mr. Sciarrotta had been an active member serving in committee leadership of Reverse Logistics Association since 2005, he had also served on the Board of RLA from 2005 to 2012 while employed at Philips Consumer Lifestyle as their Director of Sales & Marketing. So it was a simple decision for the selection team at RLA to approve Mr. Sciarrotta. Since his experience, qualifications and service to RLA was more than substantial to meet the requirement that was needed as the next Executive Director.

Board of Advisors A Board of Advisors comprised of industry experts has been set up to monitor and assist the Reverse Logistics Association management team in making informed decisions. Advisors include:

8 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

APPAREL

Chairperson:GailenVick,ReverseLogisticsAssociation

CONSUMER PRODUCTS

Chairperson:PaulBaum,PlanITROI

Co-Chairperson:KathyMurphy,JardenConsumerSolutions

Co-Chairperson:TonySciarrotta,ReverseItSales&Consulting

• PaulBaum,PlanITROI

• BrianneBoettner,BestBuy

• MarkBranum,America’sRemanufacturingCompany

Reverse Logistics Association Industry Committees• MarkFerguson,UniversityofSouthCarolina

• SteveFreemerman,GoPro

• ElaineGasser,Hewlett-Packard

• CintiaGates,Dell,Inc.

• KenJacobsen,Connexus

• StevenKoenig,CEA

• BradLarsen,Hewlett-Packard

• MariaMolina,PlanITROI

• KathyMurphy,JardenConsumerSolutions

• PaulRupnow,AndlorLogisticsSystemsInc

• JimScarff,Encompass

• AaronSharar,DynamicITAD

• CoySurles,InteliSol,Inc

• JohnYesensky,Geodis

DATA STORAGE

Chairperson:TomBurnam,WesternDigital

• TomBurnam,WesternDigital

• JoseLuisVillalvazo,Hewlett-Packard

Industry Committees are set up to provide a standing forum for Reverse Logistics Professionals to meet on a regional and global basis and discuss common Reverse Logistics issues at the RLA Conferences & Expos. Industry Committees educate the industry on reverse logistics:

• “Best Practices”

• Consumer Satisfaction Issues

• Regulations on a Worldwide & Regional Basis Processes that can Reduce Costs

Edition 76 • Reverse Logistics Magazine 9www.RLmagazine.com

Reverse Logistics Association Industry CommitteesLIFE SCIENCES

Co-Chairperson:WillKyzer,AnchorageEconomicDevelopment

Corporation

• WillKyzer,AnchorageEconomicDevelopment

Corporation

REMAN (AUTOMOTIVE & HD)

Chairperson:GailenVick,ReverseLogisticsAssociation

RETAILERS

Coordinator:RachelleHetterson,DefenseAmmunitionCenter

• RaulCastilla,Walmart

• AndreaNewman,BestBuy

• CraigSultan,HomeDepotDirect

SPACE & AVIATION (OBSOLESCENCE)

Coordinator:YannConchaudron,IESEGschoolof

Management

WIRELESS TELECOMMUNICATIONS

Chairperson:AngelikaKluna,CLi360,Inc.

Join today at www.RLA.org

Focus Committees continued on to page 5 Regional Focus continued on to page 11

10 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

Cove

r Art

iCle Retailers Get Help With New DOT

“Reverse Logistics” Rules by Roger Marks, Lion Technology, Inc.

In March of this year, the US Department of Transportation (DOT) finalized streamlined, simplified hazmat shipping rules for retail stores. The new rules will help retailers who return products to a

manufacturer or supplier for a refund, a process known as “reverse logistics” or “return-to-vendor”

(RTV) shipping.

Because the hazmat products found in retail stores typically pose a low risk to people and the environment when in transport, the new reverse logistics shipping rules provide relief for retail stores who were previously subject to more stringent requirements under the US Hazardous Materials Regulations (HMR). The HMR rules can be found in Title 49 of the Code of Federal Regulations, or “49 CFR” for short. The new reverse logistics rules are found at 49 CFR Part 173.157.

DOT’s Final Rule took effect immediately upon publication in the Federal Register on March 31. Here we take a look at what’s required, and what retail shippers must do to stay in compliance.

What is Hazmat Reverse Logistics?When it comes to regulatory compliance, it’s important to remember that common-sense definitions do not always match up exactly with the standards regulators create. As US DOT defines it, “reverse logistics” means

the process of shipping products from a retail store to a manufacturer, supplier, or distributor for the purpose of replacement, recycling, recall, or getting a refund or credit.

Products found on retail shelves that may meet DOT’s definition of a hazardous material include:

• Cleaning supplies (bleach, ammonia) • Paint, paint thinners, lacquers, etc. • Most aerosol cans • Anti-freeze • Pesticides • Hairspray • Chlorine tablets • Butane lighters• Car batteries

Not all hazmat products are eligible for relief under the relaxed standards, so it’s important that retail professionals know how to identify which products qualify and which don’t.

Which Hazmat Classes Quality for Relief?The US DOT’s hazmat regulations separate hazardous materials into nine “classes.” Within those classes, most products or materials are assigned to a “Packing Group” (PG) which specifies a level of hazard. PG I materials are the most hazardous, PG II are less hazardous, and PG III are the least hazardous. Also, some hazmat classes are

Edition 76 • Reverse Logistics Magazine 11www.RLmagazine.com

REGIONAL CHAPTERSAFRICA

Chairperson:CraigPlowden,Revlogs(Pty)Ltd

APAC

Chairperson:MohanKumarD,Hewlett-Packard

Co-Chairperson:Dr.SunnandaPanda,RevLog

Resources

Coordinator:MichaelGeoffreyOmosa,NITRourkela

• ErwanBerger,Geodis

• MohanKumarD,Hewlett-Packard

• YogeshSarin,Dell,Inc.

BRASIL

Chairperson:FelipeOrtiz,GrupoPãodeAçúcar

Co-Chairperson:OrlandoCattiniJunior,FGV

Co-Chairperson:MarceloCairolli,ArrowValueRecovery

Coordinator:RosekellyCosta,ISCAP

• DjalmaBarbosa,Dell,Inc.

• OrlandoCattiniJunior,FGV

• LucianaLacerda,Hewlett-Packard

• RicardoMagioni,Dell,Inc.

• AdrianoPêgas,Acer

• RandyWhitehead,NationalServiceAlliance

EUROPE

Chairperson:CharlieOShaughnessy,Intel

Co-Chairperson:DerekScott,Canon

• ErwanBerger,Geodis

• StephenNoonan,Intel

• CharlieOShaughnessy,Intel

LATIN AMERICA

Chairperson:GuillermoFernándezdeJáuregui,ONILOG

• RafaelMunoz,SkyAngel

NORTH AMERICA

• PaulRupnow,AndlorLogisticsSystemsInc

Reverse Logistics Association Regional Chapter Committees

12 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

broken down into Divisions to delineate specific types of hazards within the class.

The DOT hazmat classes and packing groups for which the new reverse logistics hazmat rules apply are:

• Class 3 – Flammable Liquids (PG II and III) • Class 8—Corrosive materials (PG II and III) • Some Division 1.4S and 1.4G explosive materials

like ammunition, fireworks, and flares • Division 4.1 and 4.3—Flammable solids and

Dangerous When Wet materials (excluding self-reactive materials)

• Division 5.1—Oxidizers (PG II and III) • Division 6.1 Toxic Substances (excluding toxic

inhalation hazards and PG I materials) • Class 9—Miscellaneous hazards (excluding lithium

batteries)

Batteries Not Included (Lithium batteries, that is.)

Notably not included in DOT’s new reverse logistics hazmat rule are lithium batteries. Because of the unique hazards associated with these batteries in transport, these shipments must be prepared under other specific US DOT regulations, found at 49 CFR 173.185. Those requirements apply to batteries shipped alone, with equipment, or in equipment.

The rules for lithium batteries have changed significantly in recent years, with both US and international regulators creating requirements rules for ground, air, and ocean shipments.

Another type of hazmat not covered by the relaxed standards is hazardous waste generated by retail facilities. US EPA is currently working to develop its own simplified standards for retail establishments

that manage hazardous waste, including “reverse distribution” requirements.

Quantity Limits for Reverse Logistics Shipments The new reverse logistics standards also include quantity limitations. In order to qualify for relief, a hazmat shipment must meet US DOT’s definition of a “limited quantity.” Fortunately, most products packaged for retail sale likely already meet this requirement.

Generally speaking, reverse logistics shipments are limited to 30 kilograms (66 pounds). For shippers seeking more specific information, DOT has added authorizations to its limited quantity rules found in 49 CFR 173.150—156 to explain which materials are eligible for relief as “reverse logistics” shipments.

Retailers may recognize limited quantity hazmat shipments by the markings used in transportation:

Under the new reverse logistics rules, most products that bore the markings above—in the same amounts and the same packaging—will now qualify for further relief.

Packaging Retail Reverse Logistics Shipments Retailers must select adequate packaging for reverse logistics shipments as well. Under the new rule, US DOT sets some basic packaging requirements. To return hazmat products for a refund or credit, retailers must use:

Edition 76 • Reverse Logistics Magazine 13www.RLmagazine.com

RLA Webinars are hosted and run by each Industry Committee.

Webinars are FREE and available to anyone who registers for the event. These Webinars are held monthly for each Industry Committee. They are 20-30 minute presentations given by a professional in that Industry, and then the opportunity is opened up to webinar attendees to ask Questions and share information relevant to the given topic.

COMMITTEE TOPIC CHAIRMPERSON COMPANY

STANDARDS Developing Standards for Food Safety and Quality during Transportation Processes

Dr. John Ryan Ryan Systems

RETAILERS Returns After Christmas: Challenges and Issues Derek Palmer Transform

LIFE SCIENCES Life Sciences Reverse Logistics Best Practices Gailen Vick RLA

EUROPE Driving Post Sales Value Upstream Paul Slaven Intel

APAC APAC Chapter Report Mohan Kumar D Hewlett-Packard

BRASIL Impactos da LRS (Lei de Resíduos Sólidos) Nos Processos Operacionais

Orlando Cattini Junior FGV

SOFTWARE SOLUTIONS Better, Faster Returns Processing & Data Collection Part 2

Roger Levi Intel

WIRELESS TELECOMMUNICATIONS

Being Green and Socially Responsible Amy Augustine U.S. Cellular

AFRICA What is the state of reverse logistics in Africa? Craig Plowden Revlogs (Pty) Ltd

DATA STORAGE Secondary Market for Drives Tom Burnam Western Digital

CONSUMER PRODUCTS U.S. Exports of Used Electronic Products Michael AndersonUS International Trade

Commission

14 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

• The original package or a package of equivalent strength and integrity;

• Inner packagings that are leak-proof for liquids and sift-proof for solids;

• Outer packagings that contain enough absorbent material to contain spill of liquids from the inner packagings; and

• Cages, carts, and /or bins to secure packages against shifting in transit.

Hazard Communication (Marks and Labels) for Reverse Logistics For shipments transported by contract carriers or common carriers like UPS or Fedex, retailers must continue to comply with the complete limited quantity hazmat shipping standards, including the requirement to use the limited quantity marking at 49 CFR 172.315(a), pictured above (black and white diamond).

For shipments transported by private carriers (i.e. self-transport), retailers may follow the relaxed reverse logistics rules, including the use of a new hazmat marking. The new alternative marking, created in the March Final Rule, reads:

“REVERSE LOGISTICS--HIGHWAY TRANSPORT ONLY -- UNDER 49 CFR 173.157”

What Else Do Retailers Have to Do?As part of the rule, retailers must also train employees who prepare reverse logistics shipments on the new requirements for identifying, packaging, marking, labeling, and handling the hazmat products they work with. [49 CFR 173.157(e)] For more information on DOT hazmat employee training, visit www.Lion.com/Hazmat-Training.

As an alternative to formal training, employers may provide employees with a copy of instructions (provided by the manufacturer, supplier, or distributor) to correctly follow the reverse logistics rules for the particular material being shipped. Employers must document that employees are familiar with the reverse logistics requirements. The documentation must be kept on file

throughout the worker’s employment and for 60 days thereafter.

Expanded Exclusion for Battery Recyclers In addition to creating the reverse logistics shipping standards, DOT’s March Final Rule also expanded an existing exclusion for businesses that transport used lead-acid batteries for recycling. These carriers may now pick up batteries from multiple retail locations for the purposes of recycling, provided that the batteries are consolidated on pallets and loaded so as to not cause damage to the batteries during transport. In the past, only pick-ups from a single retail location were allowed at one time (i.e. “milk runs”).

New Rules in Effect NowWith the relaxed rules now in effect, it’s critical that retailers learn the new rules and incorporate the requirements into their standard operating procedures as soon as possible. In another Final Rule posted this year, US DOT raised the maximum civil penalties for hazmat shipping violations to $77,114 per day, per violation.

Questions about Shipping Hazardous Materials?A leader in hazmat compliance training, Lion Technology presents nationwide workshops, online courses, webinars, and on-site training to help shippers identify and perform their responsibilities under US and international hazmat regulations. Learn more about how Lion can help your team keep hazmat shipments safe and in compliance at www.Lion.com/Hazmat-Training, or email [email protected].

Roger Marks is a content writer for Lion Technology Inc., a leader in hazardous materials, hazardous waste, environmental, and safety training in the US. His work has appeared in the publications Inbound Logistics, American Journal of Transportation, Environmental Protection, Material

Handling & Logistics, ISHN, and others. He contributes regularly to Lion Technology’s industry compliance blog at Lion.com/Lion-News. Learn more about hazmat training options for your retail shipping team at Lion.com.

Yep, the impossible just happened.

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Jan. 5-8, 2017 Ι Las Vegas, NVRegister now at CES.tech

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Edition 76 • Reverse Logistics Magazine 15www.RLmagazine.com

Yep, the impossible just happened.

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Jan. 5-8, 2017 Ι Las Vegas, NVRegister now at CES.tech

#CES2017

16 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

Arti

cle

A lot of attention is paid to electronics recycling as being “good” for the environment. Recycling is not “Good” as a goal – it’s an admission of defeat. Recycling is a necessary final process to deal with the last scraps of products that can no longer stay in use.

Keeping products in use and out of the recycling bin is essential to slowing the growth of e-waste.

Definition of Reuse: Every action taken in support of current use.

Every parts replacement – under warranty or post-warranty – supports current use. Every used equipment transaction is a form of reuse. Every upgrade or enhancement to an older model of equipment is reuse as is every attempted repair. When reuse markets function – there is less need for costly final processing into raw materials.

Current Recycling and Reuse Models: Governments large and small are legitimately concerned about waste electronics and have been adding mandates to cover an expanding list of products. The genesis of mandates begins with CRT glass, because of its potential to leach lead and other toxic materials into groundwater. Mandates continue to expand because other discarded electronics don’t belong in landfills either. Incineration

is even more dangerous and toxic than landfills – so electronics should not be treated as trash.

Volumes are vast and growing rapidly. The EPA estimates that 1 billion end of life computers and similar consumer electronics were entering the domestic waste stream in 2015. Of these – they estimate that only 40-70% of these gadgets were being captured by any form of recycling program. When it comes to reuse – the EPA cites a best-case recovery rate (reuse of some kind) of 15% of the recycled materials. This is a very rosy view of recycling since the types of electronics being captured represent only a very narrow market segment and specifically does not include household appliances or even cell phones.

Some think that Extended Producer Responsibility (EPR) solves the problem without considering the consequences. EPR has backfired in many locations where the collected materials cannot be processed for free – resulting in new costs to the taxpayer or dumping in landfills. West Virginia recently voted to un-wind their e-waste mandates on CRT dumping because of costs. NY has added new

Reuse is the Future of Electronics Recycling

by Gay Gordon-Byrne

Edition 76 • Reverse Logistics Magazine 17www.RLmagazine.com

Paying attention to the environment is not just good for nature, it’s also good for the bottom line.Our Association doesn’t save trees. Our Association educates others on how to eliminate the need to destroy them

Turning green inTo gold

18 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

e-waste mandates neglecting to consider that not every County in the state even operates an e-waste collection facility.

Recycling standards bodies have not yet stepped up. IEEE has been working on a server recycling (1680.4) standard for over three years that began with noble goals is now toothless having been mangled by OEM influence. The focus of the standard has morphed from keeping servers in use to worrying about the percentage of plastics that can be recovered during recycling.

Sustainable awards are going towards manufacturers over their “Green” packaging while the same companies actively block repair and reuse. Apple had former EPA Director Lisa Jackson announce the “LIAM” Robot to dismantle one iPhone at a time for recycling, ignoring Apple as the leader in opposition in killing “Right to Repair” legislation.

Focus on Reuse & OwnershipIn the above view of the world – the owner is left out. The flow of equipment is assumed to be from the manufacturer/retailer to the user and then back directly to the manufacturer/retailer through either a trade-in or an EPR program. This isn’t reality. Buyers of equipment buy things to use – and try to use them as long as possible. It makes economic good sense for business and consumers to “sweat” their assets.

The longer equipment stays in use – the less e-waste is generated, the less environmental damage is done mining and smelting and manufacturing in sweatshops. It is estimated that over 90% of the total environmental costs (carbon footprint, etc) is incurred in the manufacturing process. The longer each item is kept in use – the more

these costs are amortized across longer periods making less environmental damage overall.

Legislative and policy changes are needed because owners are no longer able to easily sweat their assets. There are several causes of difficulty for owners, from products that are made to be rapidly obsolete, to products that cannot be repaired, to embedded software licenses that do not transfer, to manufacturer policies that limit access to repair. Any one of these problems pushes more equipment pre-maturely into the waste stream.

One of the easiest and most powerful ways to slow the growth of e-waste is to restore repair to its proper role under the control of the owner. Ownership is a very well understood concept – as is licensing. The cash register is the dividing line between manufacturer ownership and individual (or corporate) ownership. All contracts state the sale is a complete transaction. Electronics are still hardware, are still property, still depreciated, and still part of the net worth of the individual of the company.

Safe use is also the problem of the owner. Car owners that get caught speeding get tickets – not GM or Ford. If a person is caught texting while driving – Apple doesn’t get the ticket either. Manufacturers have lots of federal requirements to produce safe products to protect the user – not for the user to protect the manufacturer by using things only as the manufacturer instructs. Along with the freedom of owners to use their purchases is the option to be stupid as well.

Restoring Reuse through Right to RepairRepair is only part of the spectrum of Reuse activities – but in order to repair equipment legally, every aspect of the contract that governs other uses (resale, reconfiguration,

Edition 76 • Reverse Logistics Magazine 19www.RLmagazine.com

U.S. EPA Announces Its Retail Strategy21September2016–Yesterday,U.S.EPA announced a new ResourceConservation and Recovery Act (RCRA)retailstrategy.Thisstrategyhas been long-awaited, given that it has been well over two years since the retail industry commented on EPAs February 14, 2014 Noticeof Data Availability for the Retail Sector(20Fed.Reg.8926).Full Article Customer Service Depends On Relationships Even In The Mobile Age21 September 2016 – Peopleaccess the internet on mobile devices more often than desktop computers, and that trend started years ago. It’s also been well over a year since “mobilegeddon,” when Google updated its algorithms to penalize websites without mobile counterparts.Full Article

Delivering More Than Customer Service With The Cloud21September2016–Its longbeenatruismthatholdingontoexistingcustomers is more cost effective thanfindingnewones.Today,thatstruer than ever. Its also harder than ever, now that customers can gather product comparisons instantly, shop from anywhere, and change

brand preferences with the click of a keypad.Full Article Tavant Technologies Sponsors The Global Warranty And Service Contracts Association Conference20 September 2016 – TavantTechnologies, a leading globalprovider of warranty management and warranty on-demand software, today announced that it will be the platinum sponsor and exhibitorat the Third Annual GWSCAConference2016, tobeheldat thePalmerHouseHotel,ChicagofromSeptember21to23.Full Article

Blackstone Bets Big On Logistics20September2016–Private-equitygiant Blackstone Group LP hascut a deal to pay $1.5 billion for a portfolio of logistics centers, in the latest sign that this e-commerce-driven business is one of the hottest areas in the commercial-property industry.Full Article

Council Extends Recycling Service One Year20September2016–ShredMonsterwill continue accepting residential recycling for at least another year.Full Article

GSW Reseller Reaches 10 Years Selling Telnet Server For Windows20 September 2016 – Since 2006,Scanet Solutions has been an

authorizedreselleroftheGSWTelnetServer for Windows and SSH Server for Windows. Located in Mexico,Scanet Solutions has over 20 yearsexperience implementing logisticalsolutions, guaranteeing an effective knowledge transfer process.Full Article

Penn State Is No Longer Recycling Styrofoam20 September 2016 – The nearly5,000 recyclingbinsonPennStatesUniversity Park campus collect allkinds of materials: bottles, cans, paper, but no longer polystyrene, which is often referred to as Styrofoam. The school has recentlydecided not to recycle polystyrene for a slew of economic reasons, one being the fall of oil prices.Full Article

UTi Integrated Logistics To Shut Down Sturtevant Facility, Impacting 200 Employees20September2016–UTiIntegratedLogistics is shutting down its Sturtevant facility, impacting approximately200workers.Full Article

Solutions For Electric Vehicle Batteries At End-of-Life Remanufacturing19 September 2016 – Growth invehicle electrification has increased the use of lithium-ion batteries for energy storage, and raised the issue of what to do with post-vehicleapplication batteries.Full Article

Read the Press

20 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

testing) has to be correct.

Schematics and Service Documentation: If there is any limitation on access to schematics – recyclers have great difficulty locating all the batteries that have to be removed before shredding.

Diagnostics: Without diagnostic tools (onboard or external) no parts or used machines can be tested for reuse as spare parts or whole machines.

Tools: Reuse is thwarted if tools necessary to access physical cases or logical access to service diagnostics are not made available.

Firmware: Firmware is integral to every part with an IC. Firmware should be restorable under current copyright law, or under patent law. Safety and security patches that have been issued using firmware are part of the

manufacturers’ safety responsibility and should be widely available – as any other “recall”.

Service Parts: Without access to parts – repair is impossible. Manufacturers need to make the same reasonable access to service parts to owners as they make to their authorized providers.

When these 5 common needs are available – the secondary market for used equipment retains more value. Whole machines can be configured and tested and resold with full function on which licenses can be applied. Parts have more value in support of used equipment and longer useful life. Owners can sweat their assets more easily

with competitive options for repair and support services. As the costs of repair come into balance with the value of used equipment, markets will dictate the end of life of products. Useful life will be at the option of the owner, not the End of Service Life command of the OEM.

Right to Repair is not the end of the battle to extend useful life. Copyright law remains hugely intrusive and badly needs reform. Manufacturers need to be pressured to make products that are more easily repaired and dis-assembled for reuse and recycling. Consumers need help selecting products for longer life – so that there is renewed incentive for manufacturers to provide higher quality devices that need less attention to stay in use.

Gay Gordon-Byrne is the Executive Director of Repair.org and one of the Founders of the organization in 2013. Previously, she had a long career in Enterprise IT ranging from work as a Systems Engineer on S360 products, to systems software and hardware sales as a manufacturer, business partner, used equipment

dealer, and lessor. Her book, “Buying, Supporting, and Maintaining Software and Equipment – an IT Managers Guide to Controlling the Product Lifecycle” is available on Amazon and directly through CRC Press. For more information, please visit us a Repair.org, contact me at [email protected] or call our office at 973-949-5164.

Edition 76 • Reverse Logistics Magazine 21www.RLmagazine.com

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Make plans now to join us for the next Annual Reverse Logistics Conference and Expo on February 21st - 23rd, 2017 in Las Vegas!

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22 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

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If you’ve even questioned the value of attending trade shows, this story justifies the time. Executive Director Gailen Vick and Standards Committee Chairperson, Dr. Ron Lembke both attended the Reverse Logistics Conference and Exposition in Atlanta last April. We combined our show with Supply Chain and Transportation and the Modex shows bringing over 30,000 logistics professionals together. Serendipity abounded! Both men independently came across two significant players in the labeling industry: Denso, the inventor of the

QR Code and the ANSI/ MH10 committee booth. As both described our project it was immediately recognized that we should be working together. Denso ADC joined our committee, bringing their knowledge of the technology. ANSI MH10 invited us to join their committee and joined ours as well. Mr. Vick was surprised at the response he received from these significant players in the labeling industry. “They were excited by the potential of our project to have a serious impact on labeling standards today,” he remembers experiencing.

Ron remembers walking around the show for technology related to labeling. He stumbled upon the Desno booth who suggested that he talk to Chuck Evenhoe at a booth near them. The show was shutting down, but everybody got excited. Mr. Evanhoe—who chairs numerous

committees related to bar codes and RFID, immediately understood why our Data Dictionary was important for the industry. He, too, pointed Dr. Lembke to the MH10 committee. The fun began!

In dialog with the MH10 committee, the RLA Standards Committee presented a compelling argument that there is a need for improved labeling of products to facilitate Reverse Logistics, which includes product returns, repair, refurbishing, and recycling. It was considered that modern label scanning technology has advanced to allow the communication of considerably more information that would expedite and make more efficient business processes related to each of our areas of focus. The existing labeling structure is adequate for its task, but cannot be extended to include sufficient information to our target audience.

Standards committees enable commerce, reduce costs and protect consumers. Some focus on technology, some on interoperability, and still others on business processing. There are numerous standards organizations, usually with well-defined and specific focal points. Some of the more familiar and important organizations are the International Organization for Standardization (ISO) and the American National Standards Institute. Many countries have similar organizations to ANSI, and the ISO coordinates their efforts, in order to harmonize global standards. ANSI was organized in 1918 while the ISO was organized in 1926. There are 162 member countries that support ISO.

RLA Label Standards to Become an ISO Standardby Ken Jacobsen

Edition 76 • Reverse Logistics Magazine 23www.RLmagazine.com

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MHI is one of numerous standards bodies coordinated by ANSI. MHI is the nation’s largest material handling, logistics and supply chain association. It supports 17 different industry committees covering such issues as pallet sizes and automated warehousing equipment. The charter of MH10 (one of the committees) is “To facilitate freight movement within transportation and distribution systems by providing standards for transport-packages and unit-loads, including their dimensions, definitions, terminology, coding, labeling, and performance criteria; and to represent the United States’ interests within the scope of ISO/TC122.” MH SC10.8 is focused on coding and labeling of products. Its work is coordinated with numerous related ISO committees for International standardization. MH10.8.2 issues Data and Application Identifiers (DIs and AIs).

The RLA Standards Committee has developed a data dictionary for a new class of fields named FIs for “Field Indicators.” These FIs contain information relevant to product returns, product support and repair, and recycling. Our audience is the consumer and the front line of product triage. We have called them sQRl Codes.

While most product labeling is focused on transcription accuracy for tracking and inventory control, our focus is on providing more information to both consumers and front line logistics professionals. Bar codes store only about 1000 characters of information. 2D- QR codes can provide 4000 characters of information. What could manufacturers add to the label that would be useful to consumers and logistics professionals? While each

manufacturer could create their own messages, there would be ensuing chaos as readers would each have to be customized to properly format the information.

By creating a data dictionary, sQRl codes can be used to list and identify URLs for data sheets and product documentation. They can include detailed instructions for product recycling. They can expedite warranty management. Mr. Bruce Brown, President of InforMission said, “Our vision is that these new labels would be located directly on the product so that the information is available even when the packaging and documentation is missing. The best part: the information is available through QR readers that work on modern cell-phones.” InforMission is developing tools to produce and manage QR code labels consistent with the new protocols.

Edition 76 • Reverse Logistics Magazine 25www.RLmagazine.com

At this year’s RLA Conference & Expo in Las Vegas you may have noticed a television crew roaming around. The crew was there to capture response to the conference and make a video that displayed the essence of the Reverse Logistics Association. They were also filming segments for a new video series in RL Digital magazine called RLA Rewound. As you view it, you may see some familiar faces. A big thank you to everyone who took time out from their busy conference schedule to stop and talk with our reporter. We hope you will share the video with friends and colleagues as you introduce them to the association and explain what we do and how we can support them. Stay tuned, because we may be talking to you for the next series of videos for RLA Rewound.

What is the ReveRse Logistics association?

www.RLA.oRg • www.RLAshows.oRg • www.RLmAgAzine.com

to view this video without itunes:http://www.youtube.com/watch?v=ImqPO4r5XF4

u

26 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

With space for 4000 characters that include multiple web addresses, a small label can essentially provide a limitless menu of information. From the manufactures perspective, by carefully designing the labels based on the FIs developed for sQRl codes, they can improve customer relations, reduce call-center costs, and improve after-market sales along with offering pre-sales support. They can engage the customer in the end-of-life processes, reduce return fraud and improve market analytics. And, as noted by Paul Rupnow, President of Andlor Systems, “they can reduce data entry time while increasing data accuracy.”

We are diligently working with the MH10.8 committee to become a part of this global labeling standard. We expect the process to be completed soon. Once we have our ISO designation, companies that choose to adopt our labeling protocol will be assured of its global recognition. As an open standard, we expect that many if not most labeling technology suppliers will adapt our protocols into their environments. We are currently working with four suppliers, Denso ADC, creators of the QR Code; Andlor, supplying RMA management; Eurosoft supporting PC repair and refurbishing; and InforMission, providing tools for label creation and management.

RLA@ CES 2017January5-8,2017

RLA Conf & Expo: Las VegasFebruary21-23,2017

Industry Events

Edition 76 • Reverse Logistics Magazine 27www.RLmagazine.com

We are at this time looking for companies to launch pilot projects that will enable us to refine and perfect our protocols. The benefit of volunteering for a pilot project is that our standard will become tailored to your needs rather than waiting and then perhaps having to modify your procedures to adapt to protocols established to meet someone else’s needs. Besides, it’s fun to get in on the ground floor of something new and exciting.

An example of our labeling protocol using 77 characters out of 4000 available:*

*Note: readers do not correctly format this code today. After it becomes a standard, this will change.

Ken Jacobsen is a semi-retired industry consultant who has specialized in setting industry standards. He currently serves as co-chair of the RLA Standards Committee.

28 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

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Business owners face endless decisions throughout all aspects of the supply chain. Businesses must decide which routes to use, where to manufacture products, and whether to employ the use of a third party logistics provider. However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverse logistics). Basically, reverse logistics in the supply chain revolves around

dealing with end-of-life, malfunctioning, or hardware upgrades. A reverse logistics strategy provides a path for removing the existing equipment to make way for the

next era of equipment in the case of end of life products or new upgrades. In a sense, reverse logistics could be considered the “greenest” part of any business logistics strategy. In fact, the EPA asserts that up to 40% of “tossed” computers were recycled in 2013, which has risen significantly from a startling 18% in 2007. To help you understand how a reverse logistics strategy affects supply chain strategy, consider these key points.

Return on Investment…AgainWhen a business, or other organization, purchases equipment, parts, or remanufactured equipment it is an investment. Over time, this equipment improves profitability and has a positive return on investment.

When the time comes to get rid of this equipment, business owners can employ reverse logistics practices to reap a second return on investment from the equipment. Many computers and other electronics contain high levels of metals, such as copper, iron, or steel, which may be sold for reuse in new devices. Or a defective automotive piece of equipment can be remanufactured giving life to the equipment, allowing it to be reused or resold. Essentially, this is part of the recycling process, but for our purposes, we identify this as reuse due to the income generated through it.

Increase in Public PerceptionSociety has grown to accept and embrace protecting the environment as a key value and need of modernity. Although it started as a few simple activists decades ago, environmentally-friendly businesses routinely see an increase in customer satisfaction and public perception. For example, a single business who engages in reuse and recycling can take advantage of the mass-following of the Green Movement. People have seen the harmful nature of filling landfills with millions of toxic, dangerous items, and the public wants to know that each company is doing its best to promote a safe environment for future generations. By setting an example for others, a company who recycles their end-of-life products

Four Important Benefits of a Sustainable Reverse Logistics Strategy

by Adam Robinson, Cerasis

Edition 76 • Reverse Logistics Magazine 29www.RLmagazine.com

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30 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

embraces the wants of the public. In the end, this results in a stronger, more loyal customer base, higher new customer acquisition rates, and increased confidence from the public.

Reuse Encourages Competition in ManufacturingThroughout the supply chain, businesses compete with one another for a greater share of the market. This is routinely a positive occurrence and helps keep the prices of products affordable. However, diminishing natural resources, as well as the resources necessary for the production of synthetic materials, are affecting the supply chain. Each non-recycled electron contains items that could have been repurposed and reused in new merchandise and electronics. With less recycled materials, the existing pool of natural resources will continue to decrease, which will result in higher prices as the demand for electronics grows. Ultimately, a business engaged in recycling of end-of-life computers and equipment as part of reverse logistics strategy has taken steps to help keep their expenses less. Additionally,

reduced business expenses translate into savings for the company and lower prices of their goods and services. Therefore, lower prices encourage more consumers to purchase a business’s products, which helps grow the respective company.

Reduced Risks to the BusinessA successful reverse logistics strategy must contain the processes to ensure protection of data. Data breaches may not sound as though they have a particular relation to sustainability, but a company’s sustainability is measured by its ability to maintain happy customers while reducing impact on the Earth. When a data breach occurs, it has the potential to decimate a company’s customer base. Unfortunately, a failing company is more likely to forget about recycling as part of IT Asset Disposal, and the business’s level of sustainability falters. Furthermore, recycling as part of reverse logistics strategy helps ensure the company’s existing data on their equipment is removed in its entirety, which further reduces the risk to the business. Ultimately, proper return management, recycling, and reuse encourage the

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If you are a job seeker or a hiring manager looking to staff positions within the Reverse Logistics Industry, this is the place for you. Contact RLA Connections

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Edition 76 • Reverse Logistics Magazine 31www.RLmagazine.com

protection of consumer data and foster business success and sustainability.

Throughout the course of business, business owners will need to create a sustainable plan for dealing with end-of-life equipment, recalls, remanufacturing, or equipment failures. The processes of recycling items from this equipment help to strengthen businesses by providing an additional source of income from the sale of the items during recycling, improving the public perception of the company, and reducing the risks of data breaches. Sustainable reverse logistics strategies offer so many additional, smaller benefits that they cannot possibly be listed, such as eliminating fines from government organization from improper disposal, but the overwhelming monetary benefits of employing

a reverse logistics strategy far outweigh the costs of simply tossing old equipment into a landfill.

Adam Robinson oversees the overall marketing strategy for Cerasis including website development, social media and content marketing, trade show marketing, email campaigns, and webinar marketing. Mr. Robinson works with the business development department to create messaging that

attracts the right decision makers, gaining inbound leads and increasing brand awareness all while shortening sales cycles, the time it takes to gain sales appointments and set proper sales and execution expectations.

32 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

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Reverse logistics has become a mainstay for a number of companies across various industries, from consumer electronics to aerospace and manufacturing. In an Aberdeen survey, 89 percent of respondents said that effective reverse logistics management is either “extremely important” or “very important” to the overall customer experience. These companies have three primary goals in mind: to reduce costs, add efficiencies, and improve the customer experience while building sustainable supply chain practices. At a time where

the cost of returns is staggering, the reverse logistics function enables businesses to drive real impact to their bottom line.

As a 3PL, in order to meet customer expectations, you must be able to satisfy both your internal customer and end customer, knowing that expectations vary from one customer to the next. End customers (a.k.a. your customer’s customers)—whether retailers or individuals–need to have product taken off their docks and credits returned to them. Once the returned product has been delivered to the 3PL’s distribution center, it is the 3PL’s responsibility to make sure that said product is turned around promptly and efficiently. After ensuring that the return is authorized and the warranty information is correct, the product data must then be gathered in order to determine the product’s proper disposition, which could include: scrap, liquidation, refurbish, online auction, or repackaging and return to stock.

Processing the product and getting it back on the shelf in a timely manner is the crux of the customer’s expectations, especially in the case of a Class A product. A Class A product, one that has never been opened and which requires a full reset, needs to be put back in stock

quickly. This scenario is very common, for example, in the medical industry. In any case, transparency and visibility are essential to the entire reverse logistics process.

Ryder System, Inc. utilizes a co-location strategy to turn product around, which entails combining reverse logistics and forward logistics in the same distribution center. By doing this, there is no extra set of touches, and therefore, no delays. As a supply chain partner, it’s critical to provide fully integrated solutions, to develop a strategy around customer expectations, and to build

an optimized supply chain to help them meet those expectations.

Technological enhancements have enabled reverse logistics to go beyond the status quo in adding value for customers. Things like value stream mapping provide a full look at the flow of product, which helps identify key areas for process improvement. As a result, customers are able to gain efficiencies in reducing the number of steps and handling time it takes to process product and reduce the cash to cash cycle time.

According to a Ryder reverse logistics customer, there are different elements to be aware of from a manufacturer’s perspective. How reverse logistics and returns are handled can vary across the board, largely dependent on each retailer and the terms of sale between the manufacturer and retailer. For example, some prefer to consolidate, while others do not. Freight is also a factor that varies from one retailer to another, with each having its own protocol in place. It’s important that the manufacturer, in close partnership with its 3PL, is able to accommodate these kinds of differences.

Meeting Customer Expectationsby Norman Brouillette, VP & GM of Technology and Healthcare, Ryder System, Inc.

Edition 76 • Reverse Logistics Magazine 33www.RLmagazine.com

Invest in your career and your future with a certification from the Reverse Logistics Association (RLA) that will show that you have a set of skills to build value in any organization.

In its commitment to giving you the greatest opportunities for professional development, RLA now provides certification as a:

RL CERTIFICATION

REVERSE LOGISTICS PROFESSIONAL (RLP) If you are working in the reverse logistics field with three or more years of experience, then you are ready to take the Reverse Logistics Association’s preparation course for the Reverse Logistics Professional Certification Examination. The course is 8 hours of training in the foundational principles of reverse logistics and the business practices that lead to world-class performance. The course is highly interactive in an experiential-learning format that maximizes your training so that you can immediately apply what you have learned on the job. After passing the examination, you will be qualified to put “RLP” after your name distinguishing you are a highly-trained professional in reverse logistics.

REVERSE LOGISTICS MANAGER (RLM) If you are a manager of reverse logistics processes with five or more years of experience, then now is the time to take the next step in your career by taking the Reverse Logistics Association’s preparation course for the Reverse Logistics Manager Certification Examination. The course provides 16 hours of intense instruction in the latest trends in reverse logistics and the best practices that will set you and your organization apart in your industry. You will receive in depth training in the strategic and tactical aspects of reverse logistics. And, the course also covers the tried-and-true techniques that can help a manager lead his or her staff you achieve the greatest potential value-recapture for their organization. “RLM” after

your name says that you have demonstrated a high-level of competence to lead and direct reverse logistics processes.

REVERSE LOGISTICS TRAINER (RLT) If you quality as a Reverse Logistics Manager and you have training experience, by taking the Reverse Logistics Association’s preparation course for the Reverse Logistics Trainer Certification Examination, you can become qualified to train RLPs and RLMs. The course is 24 hours long to strengthen your mastery of reverse logistics concepts and techniques as well as give you the skills to effective teach them to others. As an RLT you will be a registered education provider and you will be qualified to work collaboratively with RLA to help organizations around the world to prepare their personnel to achieve high-level performance in reverse logistics.

RL Certification program is organized by the RL Certification Committee

34 Reverse Logistics Magazine • Edition 76 www.RLmagazine.com

Reverse logistics also goes hand in hand with environmental sustainability. In today’s markets, the total cost of logistics is defined in terms of carbon impact, and “going green” has become a standard business practice. Consumers are asking for measurements around climate change impacts, energy consumption, and emissions. More and more, companies and their suppliers are expected to provide environmental scorecards, quantitative environmental performance data, and descriptions of sustainable initiatives. End-to-end reverse logistics solutions translate into energy savings and waste reduction, provide economic value and savings, and strengthen customer relationships.

Being a leader in supply chain management can be difficult for a company to achieve on its own, which is why reverse logistics is well-suited for outsourcing. It is characterized by uncertainty of supply, as no one can easily predict which products are coming back, when, or in what condition. There’s also the customized nature

of reverse logistics supply chains, which operate under company-specific rules that can vary for thousands of different SKUs.

Reverse logistics management that is effective in meeting customer expectations offers a variety of capabilities, including:

• scale and flexibility to meet changing business needs;• industry and geographic expertise;• visibility into the full product life cycle;• refurbishment and distribution center management; • web-based technologies and data integration.

Ultimately, companies that outsource their logistics services are looking for greater control of their supply chains. In doing so, they are able to drive quality, reduce costs, increase visibility, and improve inventory management. And for reverse logistics, this means increasing the speed and efficiency of receiving, inspecting, testing, and dispositioning returned products.

Norm Brouillette is the Vice President & General Manager of Technology and Healthcare for Ryder System, Inc., a FORTUNE 500® commercial fleet management, dedicated transportation, and supply chain solutions company. In this role, he is responsible for providing the

strategic vision, operational execution, and commercial leadership for the supply chain industry vertical.

Mr. Brouillette began his career at Ryder as a Logistics Manager in 1998 after retiring from the U.S. Air Force. Since then, he has progressed through various logistics management positions of increased responsibility and has lead teams responsible for some of Ryder’s largest and most integrated customers.

Mr. Brouillette earned his degree in Transportation Management from the College of the Air Force.

Edition 76 • Reverse Logistics Magazine 35www.RLmagazine.com

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You’re in town for the RLA Conference & Expo, why not take advantage of your Monday and learn more about RL in an interactive classroom setting.

Beginning at 9:00AM on the day prior to the conference, a registration fee of $999.99 allows you to attend any three workshops.

Some Past Workshops• Successful Outsourcing - RFQs, Contracts and SOW presented by Gailen Vick, RLA• Customer Experience by Kok Huan Tan, Senior Service Program Manager, DELL• Leverage RL to Drive Sustainability & Reduce Expenses by Jesse LaRose, ESE Solutions

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