SupplyChainTalk: Reverse logistics - retaining lost value and reducing waste

On 27 March 2024, Supply Chain Talk host Alastair Charatanwas joined by Mostafa Hajiaghaei-Keshteli, Associate Professor (Research), Industrial Engineering, Tecnologico de Monterrey; Katerina Petta, Senior Manager, Strategy & Operations Consulting, PriceWaterhouseCoopers – Belgium; Walaa Maher, Supply Chain Excellence Director, Matarat Holding.

Views on news
Coca-Cola has called for the government to pass legislation for single-use drinks containers before the general election or risk the UK becoming the “dirty man of Europe.” The move comes after The Grocer revealed last month that the rollout of DRS faced being put back until at least 2028, due to the time needed to install the infrastructure in supermarkets and smaller stores, and the challenges involved in forming a scheme administrator. In contrast, Germany now recycles or reuses more that 95% of its waste, while also importing waste from Italy. Decentralising recycling facilities into homes and neighbourhoods can be an effective way of reducing waste too. Naturally, financial incentives are also part of an effective waste collection scheme. However, food and drinks consumed on the go present a serious problem. Meanwhile, local councils are actively looking for new arrangements for waste management. Rather than municipalities taking the responsibility of collecting waste, other, more effective schemes need to be developed that encourage people to deal more thoughtfully with the wate they create. Thanks to the relative cleanliness of beverages bottles and other containers, these types of packaging can be managed with a better RoI as well. In Africa, there are examples of how plastic bottles are upcycled into ribbons for 3D printers, which are then sold to rich countries that operate 3D printers at scale.  

Circular supply chain models

Secondary packaging such as containers and large boxes also have their own return chains including sensors and other IoT devices that, for example, monitor temperature and where consumer behaviour has no role to play. There are also sectors that generate extremely high volumes of waste. Although some airlines have partnerships with educational institutions, for example, which means that their waste goes directly to children who are in need. In the construction industry, clients are often encouraged to shatter bathroom fittings that they don’t like rather than returning them. In a bid to reduce food waste, some UK chains have already stopped using sell-buy dates and let their consumers judge for themselves. Effective communication with reverse logistics partners is key to good customer service. IoT based sales management can also improve results. 
Reverse logistics require partners on multiple levels for moving your products, quality assurance, dedicated customer service, data and so on. 
Transport by rail can play a central role in saving costs and reducing the carbon footprint of reverse logistics. Out of the home returns can also save costs. Cutting down on packaging waste will also reduce the cost of returns.

The panel’s advice

• You can say with a bit of exaggeration that reverse logistics is a 12PL affair.