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Reverse logistics in the computer industry: Exploring the mechanisms used by companies in electronic waste treatment

Abstract:

Adequate discarding and treatment of products after their life cycle has become an important subject on the environmental agenda of governments and companies concerned with preserving the environment. This situation becomes more critical when generated waste is inorganic and needs special technological treatment for its discard, degradation, recycling, or reutilization. This is the case of electronic waste, or "e-waste" from computer products. The increase in global consumption of this kind of products is due to the speed, in recent years, with which new generations of technologies are being developed and introduced in the market. Moreover, it is generally cheaper to purchase a new product than to update the old one. Though companies develop logistics strategies so that products reach customers quickly, few are preoccupied in establishing mechanisms with the same efficacy to recovers these products in their obsolescence phase. In this context, some companies which manufacture and commercialize computer products attempt to develop reverse logistics systems aiming to recover obsolete products, reuse or recycle their components to be used as raw material in manufacturing new products. In this sector reverse logistics systems are increasingly implemented as a means of reutilizing products after the end of their life cycle, as a profitable means of cost reduction, maximizing the use of raw materials which impact directly on the reduction of computer waste. Based on this problematic, the present article aims to identify the reverse logistics process of obsolete computer products, commercialized by wholesale computer companies in Equador. In a multiple case study in four wholesale computer companies, through semi-structured interviews, we identified that companies use a partial post-sales reverse logistics system for products with manufacturing defects, which are revalued through re-manufacturing, reutilization and parts sales in secondary markets. Additionally, companies do not possess post-consumer reverse logistics systems, so that the final customer may return the obsolete product. Also, we observed that there is no recycling for separation and reutilization of primary materials, in which parts which could be recycled go directly to the landfill.