Inbound Logistics | June 2023

Containers & Packaging in Materials, Waste & Recycling by Weight (in thousands of U.S. tons)

Management Pathway

1960 1970 1980 1990 2000 2005 2010 2015 2017

2018

Generated

27,370 45,560 52,670 64,530 75,840 76,330 75,470 77,920 81,200 82,200

Recycled

2,870 3,350 8,490 16,780 28,870 31,500 36,680 41,490 40,140 44,330

Composted

Combustion with Energy Recovery

150

880

8,110 9,110 8,160 6,870 7,160 8,050 7,420

Landfilled 24,500 40,060 43,300 39,640 37,860 36,670 31,920 29,270 33,010 30,470 The data is from 1960 to 2018, relating to the total number of tons of containers and packaging generated, recycled, composted, combusted with energy recovery and landfilled. A dash in the table means that data is not available. Source: Environmental Protection Agency

as it involves disassembling it to its elemental parts and building it back up. In some cases, Xerox will remanufacture and then test the major components and sub-assemblies, which it will use to support repair needs. The parts or assemblies are remanufactured to a “same as new” quality level, with no expectation of lower performance. “There’s no conceding quality,” Gallina says. Another option is to recycle base materials like plastics, metal and glass. In 2021, more than 6,400 metric tons of equipment and parts-related waste were diverted from landlls and recycled at Xerox’s U.S. Reverse Logistics Center. Also in 2021, more than 1.9 million of the company’s toner cartridges were manufactured using recovered cartridges. More than 99% of products that come back are diverted from landlls.

themselves will need to engage in more innovation. Design and material choices also inuence the success of circular initiatives. In fashion, for instance, polyester and cotton account for about 80% of the bers used. Once either are changed by, say, adding color or graphics, they become harder to recycle, Ehrig says. Through a “circular scan,” supply chain leaders can review their business model for opportunities by identifying products that can be re-used or repaired at their traditional end of life, Saenz says. This exercise can also include identifying businesses adjacent to the company’s core operations, such as offering repair or recycling services, or providing some products for rental.

“We think about durability, style, and modularity,” Toth says. If a cushion is damaged, can Fernish get another one, while still using the rest of the couch? How “refurbish-able” is the material? “It’s a great business model, but it’s not for the faint of heart,” she adds. Also critical is thinking “from a nerdy, operational” perspective, Toth says. The Fernish team developed its own inventory management system after not nding one on the market that would provide even one-third of the capabilities the company needs. The system tracks all products at the part level. In addition, Fernish knows, for instance, not only that it has one dozen sofas, but that three were in circulation for 36 months, two for 24 months, and seven are still new in the box. Management can use this information to estimate the expected life of each product. GETTING CIRCULAR Implementing a circular approach can offer substantial benets, but getting there is rarely easy. If a business isn’t founded on the principle of making products to be reused, it’s generally necessary to rethink everything, says Brian Ehrig, partner in the consumer practice with Kearney. That’s particularly true in sectors that tend to rely on outside parties or vendors to innovate, as the companies

DYNAMIC DISPOSITION From the start, it’s critical to

consider how materials can be reused and repurposed. Since 1959, when it introduced the Xerox 914, the rst commercially successful plain paper copier, Xerox has leveraged electronics remanufacturing. When a device comes back from a customer, Xerox engages in a “dynamic disposition process,” says Al Gallina, vice president, global manufacturing and Americas supply chain operations. The most extensive process is remanufacturing the device,

PACKAGING: SEARCHING FOR DUMB, CHEAP, AND EASY

One logical place for many companies to introduce circularity is in packaging. In 2018, more than 30,400 tons of packaging and containers ended up in landlls, the EPA says ( see chart above ). Reusable packaging can reduce this number, although challenges exist. One is nding an effective substitute for cardboard, a commonly used packaging material.

32 Inbound Logistics • June 2023