|
Concern for the environment is no longer a fringe philosophy, it has without question become mainstream. To address this cultural phenomenon, companies are strategically positioning themselves as stewards of the environment by actively pursuing green initiatives. Those that are proactive stand to benefit in a number of ways ranging from increased market share and less waste to revenue generation from recycling programs. The question is, particularly for manufacturers, how can green processes be implemented without disrupting operations and extensive capital expenditures?
Consumer electronics manufacturers are ideal candidates for green initiatives because of high volumes and large-scale consumer proliferation. According to the U.S. Environmental Protection Agency, approximately 372.7 million consumer electronic units (such as televisions, computer products and cell phones) were generated in 2006-2007. Of those, 304.2 million units were disposed of and only 68.5 million units recycled.
If factored exponentially, it is obvious why savvy consumer electronic manufacturers should seek to extend the lives of their products as long as economically feasible and institute recycling initiatives to recover material instead of creating waste through outright disposal.
Manufacturers have a variety of options to contribute to the improvement of the environment. Through proactive initiatives, current processes can be utilized to create efficiencies that both protect the environment and positively impact the bottom line.
While this may seem to be a daunting task, in most cases, green initiatives can be implemented relatively easily by altering existing repair and refurbishment operations through recycling and other programs.
Here are six tips for creating a "green" program:
1. Create generic, less expensive and lighter packaging for refurbished goods
2. Utilize biodegradable packaging, made from recycled material
3. Sort recyclable materials as specific as possible to maximize volume and revenue
4. Work with regional recycling experts to reduce transportation costs
5. Recycle material in a timely manner to maximize market viability
6. Educate and encourage the entire organization to contribute to "green" causes
Repair and refurbishment
When it comes to reverse logistics, it is fundamental to have a standard screening process to determine which units and components are repairable versus those that are destined for recycling or disposal. The value of the device often determines the desirability to extend its lifecycle.
Several methods will determine whether a device should be returned to the manufacturer. The most common determination is made by the consumer whose evaluation is based on personal experience or capability. However, reliable troubleshooting can contribute to extending a product's value, by preventing returns, avoiding loss of revenue and potential waste.
If a device should in fact be returned to the manufacturer, an efficient test and repair screening process should assess the viability of the product. It is important to determine if the device itself or related components can be repaired or refurbished to keep them in the supply chain generating revenue.
Beyond basic functionality, there are several criteria to consider for refurbishment. One is acceptable cosmetic degradation, providing the potential to make the product appear like new. Another is unit components that could be recovered individually, such as batteries or power cords. These factors are critical in gaining the maximum value from a product.
If a product can be repaired or refurbished and returned to the supply chain, further environmental efficiencies can be realized in the packaging process. "Generic" packaging and electronic or Web-based instruction manuals and related information can replace physical documents that often accompany new devices. This makes the packaging less expensive and also reduces its overall weight, dramatically decreasing shipping costs. Since the products are available at discounted prices with the same branded quality standards, consumers don't miss the "flashy" packaging.
A centralized distribution model can also create further efficiencies. While this may not be feasible for all manufacturers, centralizing operations enable asset consolidation, in addition to streamlining the test, repair and refurbishment process.
|
