Overview

Rico PartsBack is a specialist logistics solution to the expanding market requirement to address the need for reverse logistics.

Reverse logistics, according to its simplest definition, is "an organisation’s management of material resources, either not sold or obtained from customers."

More specifically, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value or proper disposal. Reverse logistics also includes processing returned merchandise due to damage, out of date inventory, restock, salvage, recalls and excess inventory. It also includes recycling programs, hazardous material programs, obsolete equipment disposition and asset recovery.

There are three main factors driving the need for competitive reverse logistics solutions:
1. Environmental requirements now dictated by the WEEE (Waste Electrical and Electronic Equipment) EU directive, destined to come into force from January 2005
2. A realisation by manufacturers of just how costly reverse logistics actually is, (estimated at £1.5 billion in the UK, Ireland, France, Belgium and the Netherlands)
3. An increasing customer willingness to return products, extended warranties and an increase in taxes on waste and packaging disposal

Returns are generally considered to be a problem area within the supply chain.  They cost you money, which could be better utilised elsewhere, as well as time and valuable storage space.

Rico PartsBack focuses on providing a full returns solution from the customer to the final point of disposition. This is designed to be available to customers on a shared basis (via our PartsLink service) and enhance performance sustainability, whilst managing the growth in IT returns.

Key features:

• Full access to returns information and inventories
• Distribution of returned goods for refurbishment, resale or disposal
• Screening of parts
• Pre-sorting of parts prior to delivery to repair agents
• Ability to capture part numbers and serial numbers, etc
• Full stock accountability
• Fast turnaround of stock parts, releasing cash flow

The recycling, disposal and WEEE directive

On June 13th 2001 the European Commission proposed two precedent setting environmental directives.  The first was on WEEE and the second on restricting the use of hazardous substances to promote recycling to reduce impacts on health and the environment.

The WEEE directive will hold producers responsible for new "take back" standards for electrical and electronic equipment. For the first time, producers of electronic and electrical products will be legally responsible to pay for reuse and/or recycling of their products. The directive will apply to all producers of electronic and electrical products who do business in Europe, including U.S. manufacturers, so it will in effect set a new global standard.

Due to the fast pace of technological innovation, electrical and electronic equipment constitute one of the fastest growing waste streams in the EU. It is therefore particularly important to implement the key principles of EU waste management policy, especially the prevention and the recycling of waste, in this area.

The directive covers all equipment dependent on electrical currents or electromagnetic fields. The aim of the directive is to reduce waste by retrospectively obliging OEMs to manage and pay for the collection and disposal of goods.

Rico PartsBack provides expertise in reverse logistics which, linked to our PartsLink service, allows it to offer a full solution to OEMs and manufacturers. Rico Logistics already has a process in place to take returns from field service organisations or end users, book them onto a customer’s system through our web based RicoTRACE platform and stream the products into scrap or repair. This can be developed with customers to provide proof that the manufacturer’s obligations under the WEEE regulations are being met.

If you are interested in discussing this further, please email: information@ricologistics.com

Summary

In today’s environment, companies want to maximise their product expertise and equipment usage, while minimising inventories and freight costs. PartsBack offers excellent reverse logistics services that allow our customers to increase customer satisfaction by providing a complete view of their supply chains, including goods in the return loop.

Rico PartsBack Logistics’ strategy is to complete our end to end solution – outbound supply, field stock locations, technical couriers, collection point network and reverse logistics – and therefore deliver a total solution to our customers at the lowest total cost. By offering integrated reverse logistics solutions, we can provide feedback loops into all aspects of our clients’ inventory and distribution, and most importantly customer service.

The Rico PartsBack reverse logistics service will help you regain your storage space for forward distribution, maximise the value of returned goods and give you full accountability.