Consumer electronics manufacturers are ideal candidates for green initiatives because of high volumes and large-scale consumer proliferation. According to the U.S. Environmental Protection Agency, approximately 372.7 million consumer electronic units (such as televisions, computer products and cell phones) were generated in 2006-2007. Of those, 304.2 million units were disposed of and only 68.5 million units recycled.

If factored exponentially, it is obvious why savvy consumer electronic manufacturers should seek to extend the lives of their products as long as economically feasible and institute recycling initiatives to recover material instead of creating waste through outright disposal.

Manufacturers have a variety of options to contribute to the improvement of the environment. Through proactive initiatives, current processes can be utilized to create efficiencies that both protect the environment and positively impact the bottom line.

While this may seem to be a daunting task, in most cases, green initiatives can be implemented relatively easily by altering existing repair and refurbishment operations through recycling and other programs.

Here are six tips for creating a "green" program:

1. Create generic, less expensive and lighter packaging for refurbished goods

2. Utilize biodegradable packaging, made from recycled material

3. Sort recyclable materials as specific as possible to maximize volume and revenue

4. Work with regional recycling experts to reduce transportation costs

5. Recycle material in a timely manner to maximize market viability

6. Educate and encourage the entire organization to contribute to "green" causes

Repair and refurbishment

When it comes to reverse logistics, it is fundamental to have a standard screening process to determine which units and components are repairable versus those that are destined for recycling or disposal. The value of the device often determines the desirability to extend its lifecycle.

Several methods will determine whether a device should be returned to the manufacturer. The most common determination is made by the consumer whose evaluation is based on personal experience or capability. However, reliable troubleshooting can contribute to extending a product's value, by preventing returns, avoiding loss of revenue and potential waste.

If a device should in fact be returned to the manufacturer, an efficient test and repair screening process should assess the viability of the product. It is important to determine if the device itself or related components can be repaired or refurbished to keep them in the supply chain generating revenue. Beyond basic functionality, there are several criteria to consider for refurbishment. One is acceptable cosmetic degradation, providing the potential to make the product appear like new. Another is unit components that could be recovered individually, such as batteries or power cords. These factors are critical in gaining the maximum value from a product.

If a product can be repaired or refurbished and returned to the supply chain, further environmental efficiencies can be realized in the packaging process. "Generic" packaging and electronic or Web-based instruction manuals and related information can replace physical documents that often accompany new devices. This makes the packaging less expensive and also reduces its overall weight, dramatically decreasing shipping costs. Since the products are available at discounted prices with the same branded quality standards, consumers don't miss the "flashy" packaging.

A centralized distribution model can also create further efficiencies. While this may not be feasible for all manufacturers, centralizing operations enable asset consolidation, in addition to streamlining the test, repair and refurbishment process. Recycling
Recycling

If it becomes apparent that a unit cannot be salvaged for continued use and revenue generation, disposal should be a worst-case scenario. Recycling is a legitimate option that can be less expensive than repair and refurbishment, offering further revenue potential. What's more, a beneficial recycling program can be implemented as an extension of current reverse logistics operations, thereby reducing the need for additional overhead.

Reverse logistics is ideally positioned to collect recycling material to reduce the overall environmental impact of consumer electronic manufacturers. After repair and refurbishment efforts have been exhausted, companies should look to the device's components as the next step towards "green" operations.

Sorting these base components can produce lucrative recyclable materials including plastics, glass, heavy metals and other materials. Meticulous sorting is the most important element for recouping as much value as possible. The more material that is sorted at a granular level, such as same-grade plastics and glass, the easier it is to market' to specific material recyclers, thereby increasing profitability.

Since many parts are already sorted during routine test and repair, recycling can be done without major operational shifts. This can be as easy as sorting materials in specific bins near the production line. Rather than disposing components in a central depository, employees can be instructed to assign each material to a specific bin for efficient recycling.

A regional recycling expert who can help institute appropriate programs and facilitate the transport of the material is key in this process. Proximity is important in reducing transportation costs for a more immediate impact on the state of the local environment.

Just as with repair and refurbishment, recycling initiatives are best served through a centralized location. This facilitates the ability to collect and sort raw materials in one location to maximize volumes, creating economic advantages with recycling outlets. Centralization can also yield significant savings because processing materials in bulk is typically more efficient and further reduces shipping costs.

Reverse logistics operations with refined repair and refurbishment processes and a focus on recycling can generate value from a device, regardless of whether it is usable or not. If made a priority, these processes are a cost-effective way to operate in a "green" capacity, while enjoying a direct economic benefit.

It is important that manufacturers emphasize the importance of these initiatives from the top-down. Organizational buy-in is essential for success. Beyond the immediate impact of less waste and recycling revenue, going green can have a number of benefits including improved employee morale. While the endeavor requires a commitment, the positive results can be tangible and enduring.

About the author: Randy Engel is vice president and general manager of ATC Logistics & Electronics (ATCLE), a provider of third party logistics (3PL) and supply chain services, specializing in forward logistics, reverse logistics, asset recovery, test & repair, kitting & packaging and value-added services for electronic devices