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The upcoming European Union legislation requiring PC manufacturers to take responsibility
for the safe disposal of their products is clearly good news for the environment. However,
it could be really bad news for manufacturers, not just in the added cost of having to
recycle, but also in handling the ensuing logistical problems of tracking and taking back
old product for disposal. Step forward the distributor. At a time when many producers are
looking to ‘disintermediate’ elements from the supply chain by moving to a direct
relationship with the end-user, this is an excellent opportunity for distributors
to restate their value.
The practical consequences of the directive are that manufacturers are faced, in effect,
with product returns that ultimately will be 100 per cent! Product returns are a
particularly thorny issue and returns on this scale are a daunting task. Liaison with
local authorities, confirmation that the goods were produced by an individual manufacturer,
transportation of the goods to the recycling plant – all of this requires a detailed
level of local knowledge. This is something that most manufacturers will be unwilling –
and largely unable – to take on, but this is exactly the kind of responsibility that
distributors could be shouldering on behalf of manufacturers and one that plays to their
core strengths – distribution and understanding of local markets.
As with any complex logistical procedure, the recycling process will be more easily carried
out if it can be automated. Many distributors have already invested in sophisticated supply
chain management systems in order to provide, for example, sales analysis and forecasting
information to manufacturers, as well as assisting them to manage returns and improve
workflow. These companies will be much better able to step up to the challenge of complying
with the new directive. Those without such systems will need to think hard about how they
can continue to add value to the supply chain, especially now that the EU has raised the
bar in terms of the downstream value-add that manufacturers will need to seek from their
supply chain partners.
Peter Lusty, Chief Executive, Strategix comments, "Overall, I believe that we should all
take heart from the new EU directive. It could be good news for the manufacturers as an
opportunity to develop and be recognised for recycling innovations. It’s good news for
consumers who will find that disposing of unwanted PCs will be much easier. And it’s
clearly good news for the planet that electric and electronic products will not simply
be left to litter the countryside or in public dumps. However, the impact on distributors
is an open question. I’d like to think that the majority will look on the directive as an
opportunity. If that’s the case, then it will be good news for them too."
about strategix
Strategix is a leading European software house, dedicated to the development
and rapid deployment of supply chain software.
We focus on the wholesale and retail distribution, logistics and service sectors
where our software maximizes supply chain efficiency and accelerates customer service.
Our systems are designed for reliability, availability and performance. Our customers
enjoy a rapid return on their investment and genuine competitive advantage.
Focused on key growth sectors which range from high technology to household and
building products, Strategix numbers businesses such as
Fired Earth, Fuller Smith & Turner, Jewson, London Underground, MacLean Electrical, Midwich,
Routeco, Virgin Mobile and Wolseley among its customers.
july 2002
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