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Reclaiming Value Through Reverse Logistics

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Bolaji Ojo
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Re: What value for returned electronics?
Bolaji Ojo   2/4/2013 5:05:37 PM

FreeBird, Agree wholeheartedly with you on components. Taking back components that have been harvested from old electronics can be problematic if there are no ways to validate the authenticity as counterfeiters are always ahead of the game.

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Stock Keeper
Re: What value for returned electronics?
FreeBird   2/4/2013 11:17:29 AM

I respectfully disagree. There is a lot of value in the products themselves in terms of reclaimed materials. Although I am a bit suspicious of "refurbbed" electronics online, I have bought refurbs at factory stores and found them to be in excellent condition. In many cases, refurb means someone simply opened the box. Maybe if there was more information provided on a refurb--was it a return or a repair?--more of this stuff would be acquired.

These observations are limited to consumer electronics--on the component side, I'd be more cautious. Not becuase of reverse logistics--most logistics providers handle the provenance of parts extremely well -- but because of the sophistication of counterfeiters.

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Production Synthesizer
Value for the Logistics Provider
AzmatMalik   1/31/2013 6:02:59 PM

Retailers (online and brick-and-mortar) do not really have a choice about returns. That, just like 'sales' is built into the consumers minds as a 'given'.

A returned product, unopened, may be resellable; but almost always an opened electronics item cannot be sold for anything near the initial price, both because of the preceived 'I am getting a used item' as well as 'warranty' limitations. I NEVER buy refurbished electyronics for this reason; also there are several credit cards that extend the warranty to double the manufacturer warranty BUT only is new, ie not refurbished.

The retailers choice is to return the product to manufacturer, who then may reuse the components, but the cost will likely be prohibitive, or dispose in a regulatoryily responsible-acceptable manner.

The primary beneficiary of the return logistics are the logistics companies, such as UPS and FedEx and even the USPS. There is a lesson (cynical) in this report, simialr to 'research' funded by pharmaceutical companies, that when 'studies of drug efficacy are funded by a pharmaceutical company the postive outcomes far exceed as comapred with studies that are NOT comapny funded' (I use single quotes because this is a paraphrased 'quote' from an article in the Scienmtific American Dec 2011 issue).



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Supply Network Guru
What value for returned electronics?
prabhakar_deosthali   1/31/2013 10:49:52 AM

I am not sure how successful the reverse logistics will be for the electronics business.

In case of automobiles because of the long life of most of the components used in the cars and other vehicles , there is always the value for returned goods, a minor repair and replacement of some parts can make an old car look and perform almost like a new car. many companies are using a strategy whereby they buy back the old cars , sell their new models to these customers at a good discount, refurbish the old cars and sell them to secondary market as "pre-owned " cars.

In electronics most of the products that will be returned may have almost zero value, most of the time the electronic modules are not repairable . The only solace that the companies taking these returns will be proper disposal of the electronic waste.


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