Business in electronics is like a virus, it suddenly goes out in market so fast but then it goes obselete in just short period of time. It's like the cycle is irreversible, it seems like you cannot go back to the way it was before. Look at the cassettes/VHS today, it evolves into cd,vcd, dvd, blueray, etc... http://www.cpr-tampabay.com
The business of designing, manufacturing and marketing a good is a global effort with local tweaks to it, but compliance is almost exclusively local and the process of local compliance includes many sub-processes that also reference local financial regulations that can't be summarily handled by an overarching compliance directive or two, which is why a unified compliance directive won't automatically result into consolidation of providers.
This is where strategic partnerships will have to come into play. One side will bring the global supply chain science to the table, and the other one(s) will bring regional muscle.
The other key question to ask is; how does one achieve compliance while yielding economically optimal results? There is a key difference between maximum recovery and minimum depreciation. The answer to that question will shape how big-brand OEM's will find their next wave of solution providers.
Anyone can swim downstream with varying levels of success, but a powerful reverse logistics service provider must be able to intercept the problem further upstream, or at a bare minimum, treat the reverse logistics challenge with the mantra of influencing upstream practices to achieve continuous improvement that will drive economical value.
I agree that the fast obsolescence in electronics is making many a products useless even if they are in working condition and worth many more years of usage and that is because of the ongoing surge of the new product introductions.
While many directives are coming into place in the developed countries which will eventually make it mandatory for the suppliers to ensure recycling of these products , I believe there is a huge market opportunity for making such used products available to the third world countries where the new technology reaches a little late and reuse of the old products does make an economic sense.
I think that until many of these directives get set in place and have a firm foothold, many companies are going to keep pushing off compliance. They will also be completely unprepared when compliance time rolls around. Companies like Arrow and Avnet are showing their dedication, and will be steps ahead of other companies for compliance issues.
"Arrow Electronics Inc. (NYSE: ARW) and Avnet Inc. (NYSE: AVT), are among the corporations investing big bucks in companies that repair, replace, recycle, and dispose of electronics products"
Barbara, for what reason these two corporations are investing in such companies. Whether they want to recycling the products or helping them to get dispose? I know certain companies are funding (sub contact) there distributor channels for collecting the unused or damaged products for recycling and reassembling/servicing.
Flyingscot: Agreed. It might behoove some of these service providers to join forces and become of scale to compete with Arrow and Avnet. I think as RoHS, WEEE and other directives reach (REACH--there's another one!) their implementation dates, companies will find themselves unprepared to even refer their customers to organizations that can help collect and dispose of stuff. As much as I respect and admire the Avnets and Arrows of the industry, a little competition doesn't hurt.
I think it will stay fragmented until people understand the compliance issues of the new directives. Then we will probably see Arrow and Avnet mop up the smaller companies and offer this service directly.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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