The What of Reverse Logistics

Types and Characteristics of Returned Products

Graphics courtesy of Yusen LogisticsOpens in new window A third viewpoint on Reverse LogisticsOpens in new window can be obtained by considering what is actually being discarded or returned. Three product characteristics seem to be relevant: composition deterioration, and use pattern.

1.    Composition

As highlighted by Gungor and Gupta (1999), product composition in terms of the number of component and of materials is one of the many aspects to keep in mind while designing products for recovery.

Not only the number, but also how the materials and components are put together, will affect the ease of reprocessing them and therefore the economics of reverse logistics activities.

The presence of hazardous materials is also of prime relevance, as it demands special treatment. The material heterogeneity of the product can play a role in recovery, where one tries to obtain separate streams of different materials which are as pure as possible (a problem in the case of plastics).

The size of the product has also been pointed out as a significant factor for recovery systems. One can see, for example, the impact of this aspect on transportation and handling. Summing up, the intrinsic characteristics of a product are decisive for the recovery, since they effect the economics of the whole process.

2.    Deterioration

Next there are the deterioration characteristics, which eventually cause a non-functioning of the product, but also determine whether there is enough functionality left to make a further use of the product, either as a whole or as parts. This strongly effects the recovery option.

Several questions have to be asked in order to evaluate the recovery potential of a product:

• does the product age during use? (intrinsic deterioration);
• do all parts age equally or not? (homogeneity of deterioration);
• does the value of the product decline fast? (economic deterioration).

In fact, products may become obsolete because their functionality becomes outdated due to the introduction of new products in the market, as happens with computers. This will restrict the recovery options that are viable.

The same can be said for the intrinsic deterioration and whether or not it is homogeneous. If a product is consumed totally during use, such as gasoline, or if it ages fast, like a battery, or if some parts are very sensitive to deterioration, reuse of the product as such is out of the question. If, however, only a part of the product deteriorates, then other recovery options like repair or part replacement or retrieval may be considered.

3.    Use pattern

The product use pattern, with respect to location, intensity, and duration of use, is an important group of characteristics as it affects, for instance, the collection phase.

It will make a difference whether the end-user is an individual or an institution (bulk-use), demanding different locations for collection or different degrees of effort from the end-user (e.g. bringing to a collection point).

The use can also be less or more intensive. Let us consider the case of leased medical equipment, which is commonly used for a small time period, and is likely to be leased again (after proper operations like sterilization).

Time is not the only component describing intensity of use, but also the degree of consumption during use.

The characteristics of the product are related to the type of product in question. Product type in fact gives the first global impression on the potential states of the product when it reaches recovery.

The product’s type has been used by Zhiquiang (2003) to sketch the planning of reverse logistics activities. Fleischmann et al. (1997) distinguish the following types: spare parts, packages, and consumer goods.

A natural addition is the class of industrial goods, which in general are more complex and of a different use pattern than consumer goods. Furthermore, by looking at the United Nations (UN) classification of productsOpens in new window, and at the relevant characteristics for reverse logistics (as described previously), we find it important to discriminate a few more classes of products as ores, oils, and chemicals; civil objects; and other, transportable, products.

It is common knowledge that civil objects have a long useful life. Besides this, recovery has mostly to be on-site, as objects like bridges and roads are not easily removed and transported as such.

Ores, oils and chemicals are a special category due to their common hazardous composition needing specialized handling during any recovery process. Finally, we attribute a separate category for other materials, such as pulp, glass, and scraps. In sum, the following main product categories are discriminated.