This article is part 1 in a series intended to guide original equipment manufacturers (OEMs) and retailers with selecting the right electronics lifecycle management partner to assist them with their reverse logistics needs.
As an electronics OEM or retailer, you face growing pressure to handle reverse logistics in a legal and ethical manner. It’s not just about complying with laws and regulations. Consumers increasingly demand environmental best practices from the businesses they patronize — and this includes the handling of electronics that are retired, returned, or recalled. Illegal or unethical practices put your business at risk for fines, lawsuits, damage to brand, and loss of consumer confidence.
Keep in mind, outsourcing your reverse logistics to an electronics lifecycle management partner will not shield you from liability in cases of illegal or unethical environmental practices. This is why it’s so crucial to choose a partner with a proven track record of adhering to the highest standards and best practices. Quite simply, the right partner can help protect your bottom line, brand, and reputation.
Much to Lose…or Gain
The problem is huge and growing: the improper disposal of e-waste — millions of tons annually — polluting our nation’s soil, water, and air. Equally troubling is the illegal export of e-waste to economically developing countries, where it may be landfilled, burned, or improperly recycled. Both of these practices come with the potential for severe penalties, including costly fines, civil damages, and even prison time.
The risks also include lasting damage to a company’s brand and good standing in the marketplace. Consider this statement from Harvard Business Review:
“Our research suggests we’re on the brink of a major shift in consumption patterns, where truly sustainable brands — those that make good on their promises to people and the planet — will seize the advantage from brands that make flimsy claims or that have not invested sufficiently in sustainability.”
In other words, by demonstrating a strong commitment to environmental stewardship and a circular economy, you’ll gain a competitive advantage among existing and potential customers.
Ideal Attributes to Seek
For your company to be regarded as a good environmental citizen, your electronics lifecycle management partner must share your values. Following are key indicators of a partner with a proven commitment to protecting the environment:
Operates in a highly sustainable manner — which includes prioritizing product refurbishment and resale whenever possible; responsibly recycling electronics at the end of their lifecycle; recovering critical minerals and other raw materials for use in the manufacture of new products; and following a strict no-landfill policy.
Possesses top industry certifications — from nationally recognized governing bodies, especially:
- R2v3 (independent industry certification by Sustainable Electronics Recycling International)
- e-Stewards (independent industry certification by Basel Action Network)
- ISO 14001 (environmental management)
- ISO 45001 (health and safety management)
- ISO 9001 (quality management)
- International Traffic in Arms Regulations (ITAR)
Carries adequate insurance — covering environmental (pollution) liability, and it’s sufficient to cover a catastrophic event (as unlikely as it might be) and to ensure the partner’s continued operation.
Carefully manages any downstream vendors — which includes making sure they possess environmental certifications and are audited on a regular basis. Also, the partner’s environmental liability insurance should cover downstream vendors and non-owned disposal sites.
How does Dynamic Lifecycle Innovations measure up to these important environmental criteria? For the complete story, I invite you to download our free “Choosing the Right Electronics Lifecycle Management Partner” evaluation guide and checklist for OEMs and retailers. The guide also walks you through three other crucial areas to consider when outsourcing your reverse logistics. Click here to download now.
