[FIGURE 1] PROFIT AND LOSS STATEMENT
FOR REVERSE SUPPLY CHAIN
Disposition Options
Donate
Auction/Discount sale
Redistribute
Refurbish/repair/remanufacture
Disassemble and recycle
Energy generation from waste
Zero returns
Landfill disposal
Revenue Line Items
Tax deductions
Auction/discount sales
Net asset value of assets recovered over a minimum %
Market value or proceeds from selling repaired/refurbished/remanufactured parts
Proceeds from selling scrap to recyclers
Utility offsets or value of energy sold
Value-added tax (VAT) reclaimed
X
X
X
X
X
X
X
XXXXXX
X
Cost Line Items
Returns authorizations
Order management costs
Transaction costs
XXXXXX
XXXXXX
X
X
Gate keeping
Labor and equipment costs
Inspection costs
XXXXXX
XXXXXX
X
X
Warehousing and transportation
Warehousing costs
XXXXXX
XXXXXX
XXXXXX
X
X
X
Taxes
X
X
Customs
Excise and VAT
Other taxes/penalties
X
X
X
X
X
Customer service
Call center costs
XXXXXXXX
XXXXXXXX
X
Zero returns policy
Returns allowance
X
In-house facilities for repair/remanufacture/recycle/disposal
Overhead and operating expenses incurred in running in-house facilities
Cost incurred in running facilities for energy generation from waste
X
X
Net profit/savings
Nonfinancial considerations—illustrative for returned consumer electronic items
