Reverse Logistics manages the return of goods in the supply chain, in the most effective and economical way possible, it takes care of the recovery and recycling of containers, packaging and hazardous waste; as well as the processes of return of excess inventory, customer returns, obsolete products and seasonal inventories. It even anticipates the end of the useful life of the product, in order to give it an outlet in markets with greater turnover. Reverse Logistics within the Companies has had an increasingly relevant connotation, since they have set their eyes on this process due to the hidden values that are managed and that constantly affect the final results of the Companies,not even recognizing that the logistics management of reverse flows can be a factor of competitive advantage since minimizing this process allows to obtain better results throughout the Supply Chain.
This term of Reverse Logistics is not used only to refer to the role of logistics in the return of the product, but also refers to the reduction in origin, recycling, the reuse of materials, the substitution of materials, the elimination of waste and scrap, repair and remanufacturing.
Its introduction is the result of growing environmental awareness in industrialized countries, which leads to the question of waste collection and used products or components and their recycling.
As is known from registered statistics, large companies have a significant contribution to pollution, in the European Union, of the order of 50%. In other words, half of the waste comes from small and large companies. Therefore, it is necessary to promote sustainable development in large companies, to reduce the pollution generated in their plants and to determine the impacts derived from their products and services.
But in order to achieve this, it is necessary to make available to large companies, effective tools –reverse logistics management systems-, which are easy and fast to implement, and which, on the other hand, do not make their production costs more expensive.
The main objective of this work is to develop a Reverse Logistics procedure for the management of waste through a supply chain. It constitutes a proposed solution to manage the treatment of waste that is currently generated, both by companies and by society in general. In this procedure, the stages to be taken into account as part of the management system are defined.
In order to comply with the proposed objectives, techniques such as: interviews, checklists, ABC Method, the process approach and bibliographic analysis were used, in addition to taking into account all current norms and regulations in environmental matters.
Introduction
Economic globalization, regulation and standardization in the industry, infrastructure development, technological advances and environmental sustainability are forcing companies to rethink the way they do business, as well as to seek new approaches to maintain and expand their business. presence in the market.
In short, new business strategies that go through rationalization in manufacturing operations, as well as the launch of initiatives to serve new markets, with new products and new ecological concepts.
Therefore, taking into account all the processes, procedures and the introduction of demanding environmental legislation, which obliges manufacturers to carry out a control of their products to raise the level of environmental protection, the still unknown Reverse Logistics arises: renovation, recycling and collection of products, containers and packaging.
This term of Reverse or Reverse Logistics is not used only to refer to the role of logistics in the return of the product, but also refers to the reduction in origin, recycling, the reuse of materials, the substitution of materials, the waste and scrap disposal, repair and remanufacturing.
Its introduction is the result of growing environmental awareness in industrialized countries, which leads to the question of waste collection and used products or components and their recycling. Due to all of the above, the main objective of this paper is to develop a Reverse Logistics procedure for waste management through a supply chain. It constitutes a proposed solution to manage the treatment of waste that is currently generated, both by companies and by society in general.
Reverse logistics concept
Before capturing the main stages of this procedure, it is necessary to make a brief analysis of the latest definitions of Reverse Logistics in order to achieve clarity of how important it is for today's business world.
1. Reverse logistics includes all operations related to the reuse of products and materials. refers to all the logistical activities of collection, disassembly and processing of materials, used products, and / or their parts, to ensure a sustained ecological recovery. » (7)
2. It is the process of efficiently planning, implementing and controlling the flow of raw materials, inventory in progress, finished products and the information related to them, from the point of consumption to the point of origin with the purpose of recapturing them, creating value for them, or discard them. " (8)
3. «As reverse logistics in the broadest sense all the processes and activities necessary to manage the return and recycling of goods in the supply chain are understood. Reverse logistics encompasses product distribution, recovery and recycling operations. " (two)
As can be seen in these concepts, there are several important elements among which are: that it not only refers to the treatment of goods, products, containers and packaging, but also refers to the decrease in origin, that is, through the cycle life of the product we have to employ and use tools capable of obtaining the minimum possible amount of waste, waste and non-recyclable or recoverable materials. This new term implies a greater environmental commitment in the supply chain, which favors the development of a cleaner production (or service). Another aspect of interest is that reverse logistics has the strategic economic objective of adding monetary value, which is the most evident in the implementation of this concept in companies. It is observed that, more recently,Two new factors encourage business decisions in their adoption: the competitiveness factor and the ecological factor.
The ecological objective of the corporate image of reverse logistics is typical of business actions that seek to contribute with the community for the incentive and recycling of materials and project changes to reduce impact on the environment, among others.
It can be seen that the aforementioned are not independent and can occur simultaneously.
Stages of reverse logistics for waste management through a supply chain
To reduce the pollution generated in companies and to determine the impacts derived from their products and services, it is necessary to make available to them, effective tools –reverse logistics management systems-, which are easy and fast to implement, and which, on the other hand On the other hand, don't make your production costs more expensive.
Undoubtedly, for companies, reverse logistics will be key not only for environmental reasons, but also to efficiently manage the products introduced for different reasons in the chain, if they want to recover the maximum of their value.
Just as the existence of the direct supply chain is considered, which manages the forward flow of materials and products, in the Reverse Supply Chain the management of products and materials returned by customers for their proper treatment is considered. either by the manufacturer or the relevant supplier. (one)
This is implicitly established from the definition of reverse logistics, in which the entire flow of products and materials is directed from the point of consumption (customers) to the point of origin (manufacturers, suppliers) to recover the value they still have. said products or materials, and give the proper destination to the waste.
As shown in Fig. 1, in the reverse chain, all participants will develop those processes necessary for the recovery of products and materials, facilitating the management of materials and information for their correct destination and treatment. (3)
To conceptualize a system applied to Reverse Logistics, the criteria of different authors are taken into account that allows generating a procedure as general as possible, and which in turn will give guidelines for each of the stages. Table No.1 shows both the proposed stages for a system of this type by various authors, as well as the stages of the authors of said work.
Table No.1 Stages for a General Reverse Logistics Model for waste management
This procedure contains three fundamental stages as can be seen:
1. Diagnosis: The fundamental objectives of this stage is to carry out an environmental diagnosis of the current situation of the entity that is the object of study through a rigorous inspection, losses, residues, wastes are analyzed, the inputs to the system are analyzed and all the information that this phase carries with it. Tools such as checklists and the ABC Method (Institute for Ecological Economy, Berlin) can be used to carry out the environmental impact assessment. (4)
2. Generation sources: An analysis is made of the emission sources of the volumes that are generated, of the potential clients and what are all the alternatives to analyze to move on to the next stage, it is a time of information collection through records fundamentally and assesses what impact said source generates on the environment to determine storage and reception methods.
3. Classification of waste: In this phase the waste is evaluated taking into account different criteria such as:
- Status of the waste or waste Degree of danger Destination of the waste or waste According to the origin Degree of control over the waste or waste Characterization of the waste or waste Temporary storage according to its classification
4. Identification of the strategy to follow: It is determined what is the strategy regarding the treatment that the residue or waste must follow, that is, with a group of specialists and consulting all the existing regulations that govern in the country and internationally, and doing an analysis of the costs that this decision generates, it is proposed to recycle, reuse, cannibalize, restore, among other alternatives, either using the entity itself or with third-party services.
5. Determination of the treatment or destination: Once the strategy to be followed has been identified, the decided treatment is carried out or it is passed to the final destination. Below is a brief description of the most common disposal and treatment processes:
a) Uncontrolled discharge
It consists of the accumulation of waste without any type of open-air treatment. Although it is the oldest and cheapest way to dispose of waste, it is not acceptable from an environmental and human health point of view. Animals and microorganisms proliferate in these landfills and decomposition products are generated that pollute the soil, air and even surface waters. Other problems are bad odors, landscape impact and possible fires, which would release toxic fumes.
b) Controlled dumping or landfill
It consists of the storage of waste in large areas that are excavated and filled with alternative layers of trash and compacted earth. It is essential to choose a land located in a geologically and topographically suitable area to avoid contamination on the surface or groundwater.
Because the anaerobic decomposition of organic waste generates gases, the landfill must have good ventilation to prevent explosions.
The walls are waterproofed with polyethylene to prevent seepage into lower layers.
In addition, the landfill is covered with a layer of clay that waterproofs the soil to prevent the escape of odors and the infiltration of rain, and several layers of sand and humus that allow the growth of vegetation. These lands can be converted into recreational areas or industrial zones.
c) Incineration
Incineration is a controlled combustion process at high temperatures, which transforms the organic fraction of the waste into inert materials (ash) and gases. During the process a large amount of heat is obtained that can be used for district heating or to generate electrical energy. It is not a total elimination system, since it generates ashes, slags and gases, but it determines a significant reduction in weight (70%) and volume (80-90%) of the original waste.
d) Recycled
Recycling consists of using the materials from which the waste is made as raw material for other applications. It is a very beneficial waste treatment since it reduces the volume of garbage, decreases the amount of raw material used, and saves energy and natural resources. In the world, paper and cardboard are mainly recycled, followed by plastics, glass and metals.
6. Transportation and Storage: Waste collection and transportation operations represent between 60 and 80% of global costs, and consequently are of great economic importance. A set of parameters converge in these operations such as the frequency of collection, the hours of the same, the equipment and the collection personnel.
In this phase, it is vitally important to determine the collection routes, collection frequency, transportation conditions and determine the cheapest alternative or alternatives, taking into account the costs associated with said management.
The collection frequency depends on the type of waste and the magnitude of generation of the entity, the schedules are established at the convenience and by agreement of the centers involved, but always outside working hours or without interfering with the operation of the entity with the specialized equipment and personnel to avoid contamination.
7. Measurement and Control: This last stage is of great importance since it allows to have a rigorous control in each one of the stages, to evaluate them through indicators and to propose different solution alternatives at all times. A proposal of indicators is:
- Amount of losses or waste Total management cost Cost of losses and waste Generation frequency Compliance with collection frequency Structure of waste composition Cost of storage and transportation Comparison of potential volumes to be recovered in compared to what is actually recovered.
In addition, it is necessary to have control through records of a series of information, among which are:
- Keep track of the amount of losses and waste in (%) and in volume Determine the time interval between verification and control of the volume of waste and losses Track the classification, treatment and destination of waste and losses Keep control of all information related to the process.
It should be noted that in relation to the information and records to be kept in this procedure, some proposals are made of the elements to be taken into account in said system, so that each body or entity will take into account its particular aspects.
In the specific case of Cuba, this procedure is currently being applied for different entities, among which are: the José Antonio Echeverría Higher Polytechnic Institute (ISPJAE), the Union of Raw Materials Recovery Companies (ERMP) and Almacenes Universales, SA (AUSA). In these places, the diagnostic stage is being applied above all to know what volumes are generated and in what conditions the Cuban entities are in this regard.
Conclusions
Once this work is finished, the following conclusions can be reached:
- Reverse Logistics for companies is a key factor, not only for environmental reasons, but to efficiently manage products reintroduced for different reasons in a supply chain, if it is to be recovered as much as possible. A general procedure for Reverse Logistics is proposed. for the treatment of waste, taking into account the criteria of various authors. In general, many of the authors coincide with the stages or phases of said procedure, although the content and its application are different. The application of the procedure may constitute a leap progress for waste management in the specific case of Cuba.
Bibliographic references
- Acevedo Suárez, JA, Ana J. Urquiaga Rodríguez and Martha I. Gómez Acosta: Management of the Supply Chain. Ed. ISPJAE, Havana, April 2001.Carrefour. The implementation of Reverse Logistics in a Multinational Distribution. p.3.García Olivares, Arnulfo Arturo,: Tactical-operational recommendations to implement a Reverse Logistics program, edited by eumed. Net.México, 2004.Gómez, D. (1998): Environmental impact assessment. Editorial Agrícola Española, SA, Madrid, pp.63-100.Knudsen Gonzalez, Jose Alberto: Design and management of the supply chain of agro-industrial waste from sugar cane. Summary of doctoral thesis, Santa Clara, Ciudad de la Habana, 2005.Matos: Model for the improvement or design of a recycling system for containers and packaging. Summary of doctoral thesis, Matanzas, Cuba, 1998.REVLOG (2002 ”) GAT is reverse logistics ?. The European Working Group Reverse Logistics (REVLOG). Ehttp /: www.fnk.eur.nl/OZ/REVLOG/Introduction.htm.Rogers & Tibben-Lembke. RLEC. Reverse Logistics Executives' Council. p.9, 2003
