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COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida PowerPoint Presentation
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COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida Definition: The return of goods from the marketplace to the vendor for any reason What is “Reverse Logistics ”? Manufacturer Vendor Distributor Shipper Retail Store Sales Department Who receives these returned goods?

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COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida

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March 11 – 13th

St. Petersburg, Florida

what is reverse logistics


The return of goods fromthe marketplace to the vendor for any reason

What is “Reverse Logistics”?
who receives these returned goods


  • Vendor
  • Distributor
  • Shipper
  • Retail Store
  • Sales Department
Who receives these returned goods?
reasons for return


  • Defective
  • Malfunction
  • Obsolescence
  • Out of Business
  • Product recall
  • Wrong delivery
  • Other
Reasons for return:

Sources of Reverse Logistics

Marinas, Parts Stores

Specialty Boutiques




Building supply

Recall coordinators


“Big Box store”

Auto, ATV, Motorcycle Dealers

Department store

Catalog sales & Warehouses

Independent sales agents

Convenience stores

common commodities found in reverse logistics

Perfumes and fragrances

  • Cosmetics
  • Paints and coatings

(including pails, cans, nail care)

  • Construction Adhesives
  • Aerosols
  • Paints, Insecticides
  • Household cleaners
  • Automotive products
  • Adhesives
  • Solvents
  • Battery operated electronics
  • Gasoline fueled equipment &

Internal combustion engines

  • Chain saws, Weed whackers
  • Generators
  • Power washers
  • Auto, Boat, ATV, Motorcycle
  • Replacement parts
  • Camping Equipment

Fuels (Propane, gas, sterno, etc.)




Common commodities found in “Reverse Logistics”
benefits of return logistics

Verification of return or replacement

  • Incident control
  • Investigate product failure
  • Quality control
  • Improve economies of scale for reuse, recycling, or disposal
  • Sustainability impact – reduction in transportation miles from retail stores
Benefits of Return Logistics
benefits of return logistics8

Maintain safety and value of the product (eliminating unauthorized sales in flea markets, garage sales, and over the Internet)

  • Recycling or remanufacturing
  • Limit waste generation
  • Ensure proper disposal (“Green initiative”)
Benefits of Return Logistics
can these be hazardous materials


In some cases,

products entering reverse transport

need to be shipped in accordance with regulations governing the safe

transport of dangerous goods.

Can these be hazardous materials?
how reverse logistics works

Packaging used?

Normally the most convenient.

  • Is this packaging adequate?
  • Are materials placed in the packaging safely?
  • Are chemicals segregated to prevent unintended reactions?
How Reverse Logistics Works:
how reverse logistics works11


Air Express

Common carrier

Private carrier

How Reverse Logistics Works:
transportation is regulated

Pipeline and Hazardous Materials Safety Administration(PHMSA)

a department of the

US Department of Transportation


Transportation is Regulated
dot phmsa s position

“Regulation alone is

not enough to fulfill our safety

mission. We rely on partners,

like COSTHA members, to help

protect the public and the

environment from careless

or non-compliant shipments”

“The partnership we are entering will

develop and introduce practical safety solutions that

work for the public and the regulated industry.”

DOT/PHMSA’s position:
costha s role in reverse logistics

“The industry has established an excellent safety record for regulatory compliance and safety in the distribution of hazardous materials.”

costha s role in reverse logistics16

We now need to examine the reverse logistics process where:

  • the person packing the returns may not be a trained hazmat employee;
  • the packaging may not be the same as when it was originally shipped;
  • the person preparing the returns may not be aware of the hazards associated with transportation;
  • the items shipped may be subject to EPA Hazardous Waste rules.
win win outcome

“Through this partnership, COSTHA and PHMSA can openly discuss the issues and provide solutions to enhance transportation safety”

Win – Win Outcome:
goals and objectives

Obtain industry input at:

  • organized workshops
  • discussion groups
  • meetings
  • forums
Goals and objectives:
goals and objectives19

Partner with PHMSA and EPA to:

  • Develop acceptable and achievable standards
  • Introduce rulemaking
Goals and objectives:
desired outcomes

Assessment of the reverse logistics issue

  • Introduce standards and guidelines
  • Implement systems; improve training & education
  • Identify required resources to control transport risk
  • Incident prevention
  • Increase reuse/recycling; improve sustainability
  • In-store risk reduction
Desired Outcomes:
moving forward with reverse logistics


    • COSTHA Members
    • Other Non-member Interested Parties
  • WHAT?
    • Identify funding needs and resources
    • Education and Outreach
  • WHERE?
    • Scheduled meetings – COSTHA, US DOT, US EPA
Moving Forward with Reverse Logistics:
open mic
Open Mic

Are there any Questions or Comments from:

  • Governmental Agency Personnel
  • COSTHA Members
  • Other Non-member Interested Parties


  • Hazardous Materials in Reverse Logistics offered via highway, rail or vessel.
  • Definitions: Reverse Logistics, others needed?
  • Limited Quantities and Consumer Commodities in:
    • Original packaging, or
    • Inner receptacles are intact, then repack into strong outer packaging with suitable cushioning material and securely closed, or
    • Inner receptacle are damaged, leaking, etc, then repack with absorbent material and/or suitable leak-proof plastic liner.
  • Internal Combustion Engines
  • Batteries or equipment powered by batteries
  • Materials authorized for transport according to an exemption or special permit.
  • Salvage Packaging

EPA Semi-Annual Agenda 40 CFR 273

  • Regulate Hazardous Consumer Product Waste as Universal Waste.
  • Consumer Products in Reverse Logistics not considered a Solid Waste until determined by the Manufacturer.
  • Deferring waste determination will simply the regulations within the supply chain – eliminating unnecessary costs, while protection (and improving) the environmental impact.
  • Allows the most knowledgeable party – the manufacturer – to make resuse, recycle and disposal decisions.


The COSTHA partnership with PHMSA is a commitment to moving this initiative forward



Contact Information:


7803 Hill House Court

Fairfax Station, VA


Phone: 703/451-4031 Fax: 703/451-4207



Presentation creatively designed by H.Skolnik and R.Jessop