REVERSE LOGISTICS
strategicinsight
Reverse the
(hazmat)
curse
Reverse logistics operations are particularly prone to
hazmat violations because employees aren’t always
aware they’re handling hazardous goods. Here’s how
to minimize risk to your operation.
IT’S NO SECRET THAT MANAGING THE PRODUCT RETURNS SUPPLY
chain is different from handling the traditional outbound, or “forward” logistics,
function—a fact that makes “reverse logistics” daunting to many practitioners.
And you can add this to the list of challenges: Many returns contain hazardous
materials, an inconvenient truth that often goes unnoticed by retailers.
For manufacturers, this is generally not a problem. They know their products’
properties and handle returns in compliance with the laws and regulations that
govern hazmat transportation, distribution, and storage. Retailers’ employees,
though, don’t always recognize the potential hazards inherent in some consumer
products. As a result, they may unknowingly violate federal laws and regulations.
Such ignorance puts companies at risk for penalties, lawsuits, employee injury,
and property damage. And the risk isn’t going away. Due to retailers’ increasingly
liberal returns policies, the volume of hazardous consumer goods in the reverse
logistics stream is likely to increase, according to experts. Consumers’ “voracious
appetite for consumer electronics and the shrinking lifespan of these devices”
mean that hundreds of millions of potentially hazardous products are returned or
discarded annually on a worldwide basis, says Joe King, vice president of sales,
aftermarket solutions, for third-party logistics service provider ModusLink.
That’s why it’s more important than ever that reverse logistics operations be fully
compliant with hazmat laws and regulations, not only at the warehouse or returns
center but also at the retail store level. Costly though that may be, the potential
consequences of failing to ensure compliance—possibly life-threatening injuries to
