September 30, 2003 6:09 PM GMT (Datamonitor) – Wincanton’s [WIN.L] new council contracts to recycle fridges highlight areas of new custom for logistics providers. EU legislation will soon make manufacturers and retailers responsible for the collection and disposal of a wide range of returned electrical and electronic goods. Many will need the help of a specialized logistics solution provider.
Since August, UK-based supply chain solutions company Wincanton has been collecting and recycling old refrigerators on behalf of three local government authorities in the North East of England, helping them comply with legislation and meet the aims set out by the UK Waste Strategy.
The logistics company recently invested GBP5 million in its Billingham recycling operation and knows that the plant is set to get busier in the near future. “We were acutely aware of the increasing legislative challenges local authorities, manufacturers and retailers are facing,” said Larry Boulton of Wincanton.
The EU Waste Electrical and Electronic Equipment (WEEE) directive, which comes into effect next August, will make businesses responsible for the correct disposal of any electrical or electronic equipment they manufacture, import or sell to consumers.
The legislation is designed to cut the amount of recyclable material ending up in landfills and incinerators – unwanted electrical and electronic goods represent one of the EU’s fastest-growing waste streams. Instead of throwing their unwanted equipment onto landfills, consumers can return it to the retailers who are then responsible for its recycling.
However, the ‘polluter pays’ principle means a significant burden on manufacturers and retailers, which will be forced to organize proper recycling strategies. This will incur costs – the DTI estimates as high as GBP455 million for UK businesses alone – but may have some beneficial side effects, quite apart from the obvious positive environmental impact.
Putting a proper reverse logistics strategy in place can benefit a company’s operational efficiency by reducing waste, and establishing appropriate channels for unsold or returned products. Even before the WEEE directive comes into force, returns are already an inconvenient fact of life for retailers. Many may find that, with the help of a specialized logistics provider, they can reclaim some of the value of goods they once regarded as rubbish.