Sustainable Solutions for SCM

The secondary recycling means that the value of the product decreases during every recycling time until the product is worthless. Used products or recycled materials are used into processes, which have lower quality requirements than the previous use. The product does not necessarily return into production but through logistics processing for the market. The secondary recycling groups are for example second-hand products, repaired products and recycled products, which can be utilised with limitations (for example paper). In logistics recycling, the recycling is examined as a part of the all-included value chain of the product, which includes only those phases as structure, which bring substantial added value to the thoroughgoing material. The line view usually gives a good starting point for the understanding of the contents of the logistics because the logistics chain is a multi-company oriented. The line examining (or value analysis) shows the multiple storage, needless material handling- and packing phases, the complexity of the distribution channels, the eventful transportation chains and slow throughput times.

Figure 5.10 The logistics methods in recycling The logistics methods in recycling (see Figure 5.10) are tightly connected to the logistics strategies of the companies and the basic questions such as do we buy the logistics services elsewhere or do we produce them ourselves? When examining the whole value chain, a lot of synergy between the distribution and recycling can be found. Prolonging the value chain with several intermediate phases increase the costs but not necessarily give any added value. The final value of the product is however the same than the value of the weakest part of the chain which gives reasons for the recycling. If the recyclability and usage of the recycled material have not been considered in the product’s planning and production phases, the recycling may cause problems when the product reaches the point of rejection (see Figure 5.11).

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