The physical flow from 1999 - 2002/2003

The waste management companies (Elektronikkretur AS and Hvitevareretur AS) established their system with two types of actors: transport operators and reprocessing units. The

Case1:The El-retur system

collection sites are defined by the EE-Regulations and consist of retailers" and municipalities. El-retur has identified 4000 municipalities and retailers, i.e. collection sites, that handle El-retur's product categories. The transport operators are organized to pick up the products at the collection sites and deliver them to the reprocessing units. At the reprocessing units the products are dismantled and reprocessed into materials after the hazardous materials are sorted out. After the products have been handled at the reprocessing units, they are supplied to secondary markets for recycling or disposal.

The extension of the contract period from July lst 2002 to June 30th 2003 was a direct continuation of the system as it was, but it allowed for increased integration of the waste stream between Elektronikkretur and Hvitevareretur. That is, the products did not have to be sorted within the El-retur categories at the collection site and by the transport operators. In addition, the CFC (chlorofluorocarbons)-white goods45 were incorporated in the system.

The system has three functions: collection, transport and reprocessing. The collection activities are defined in the EE-regulations and the waste management companies define the transport and reprocessing activities. The El-retur system signed with three transport operators and four reprocessing units during the first contract period. The collection system is nationwide in Norway but the actors were given specific geographical areas to operate within.

The structure is illustrated below:

44Defined as "distributors" inthe EE-regulations.

45 White goods with CFC were regulated in the CFC-Regulations a few years prior to the EE-Regulations. A collection system was established for these types of products. After the collection systems for EE-waste was established, it was possible to include the CFC-products into the collection systems for EE-waste.

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Case1:The EI-retur system

Commercial

4000 coUection siles

3companies

4companies

Figure 6.2:The El-retur's collection system from 1999 - 200212003

The retailers are sales outlets for the products, while the municipalities are public waste collection sites. Under the EE-regulations it is mandatory for retailers and municipalities to operate as collection sites for EE-products at end-of-life. In addition, the retailers and municipalities are obligated to inform their customers (i.e. the end-consumer) about the possibility of returning EE-products at end-of-life. The rationale for the retailers as collection sites is that as long as they sell EE-products, they also have to take on the responsibility for collection. For the municipalities, however, the rationale is based on the fact that they already provide a public service of collection sites for other types ofwaste. Thus, when the new waste category of EE-products was introduced, it could be coordinated through the same sites.

Products are delivered to the collection sites from both commercial and private end-consumers. The end-consumers may bring their products to a collection site or have them picked up at their premises (e.g. an old TV is picked up when a newone is delivered). Private consumers may deliver their waste to any ofthese collection sites free of charge. Retailers are obligated to take back the products they sell, irrespective of brand, e.g. if they sell fax machines they are obliged to take back all fax machines. Commercial end-consumers (companies) may return products to retailers only if they buy the equivalent volume of new products from the retailer. Alternatively they can send them to the municipalities for a cost.

End-consumers can get in contact with the El-retur system and have products picked up from their premises".

The transport activities include identification of frequencies towards the collection sites, possible accumulation of volume at a regional collection site, and transport to the reprocessing units. The reprocessing activities include registration of volume, dismantling, and reporting hazardous materials and reprocessed volumes to the waste management companies. The activities are summarized in the table:

Table6.1:The process in the El-retur system

Delivery ofEE-products at end- • Transport (either by the end-consumer or the retailer).

of-life from private and • Commercial end-consumers need to buy equivalent volume.

commercial end-consumers to • Private end-consumers can deliver products free of charge.

retailers

Delivery of EE-products at end- • Transport (by end-consumers)

of-life from private and • Commercial end-consumer pays a fee for delivery.

commercial end-consumers to • Private end-consumers can deliver products free of charge.

municipalities

Handling at collection sites - at • Keep cages and containers to secure safe handling and transport.

retailers or municipalities • Provide information to customers/end-consumers about the collection service.

• Provide area for collection of returned products.

• Collect and sort products according to certain categories and secure careful handlin_g.

Transport to and handling at • Identify collection frequencies and transport capacity regional collection site • Transport from 4000 locations to regional collection sites.

• Register sorting, storing and handling ofvolumes.

• Labeling of outbound volumes.

Transport to reprocessing unit • Trausport to reprocessing unit.

• Report volumes to waste management companies.

Reprocessing • Registration of arrived goods

• Sorting and registration of volume into the categories (6mainand 24 sub-groups)

• Dismantling products

• Remove hazardous waste

• Find secondary markets

• Report volume and disposition of products to the waste management companies

Collection sites were not initially included as a part of the El-retur system. The system related to the EE-regulations where it was defined that all the retailers and municipalities were obligated to operate as collection sites for EE-products at end-of-life. The waste management companies in El-retur expected the end-consumers to either deliver the products to the

46Have to cover the transport costs but the service may be free of charge if the volume exceeds 500 kilos.

118

collection sites, or get in contact with their transport operators. The high number of collection sites was expected to secure availability and make it easy for the end consumers to return the products. This was strengthened because there was no charge for returning products to the sites for private end-consumers, only commercial end-consumers had to pay a fee. One municipality explains:

"Our collection activity consists of eight collection sites. We have high competence in handling small deliveries from households and small companies when they bring it to our sites. It is our opinion that commercial customers should deliver their products elsewhere than at a municipality collection site. We do not prefer commercial customers to deliver to our site. The price we have for them to leave their products with us, usually makes them find other solutions. " ROAF Bøler

The collection function, however, is not straightforward. End-consumers are not attentive to information about the system and dispose of EE-waste at the 4000 collection sites and other actors (waste companies external to the El-retur system). The experiences of the waste companies are that it is difficult to get end-consumers to sort wastes correctly. Inmany cases, end-consumers do not want to relate to a number of channels for a number of waste categories (e.g. one for paper, one for EE) but prefer a one-stop delivery (one actor takes all). This creates product flows through other channels in addition to the El-retur system. The waste management companies in El-retur expected the actors either to deliver the products to the collection sites or get in contact with their transport operators. However, waste companies acquired cost elements in handling the products that were not compensated. The statement shows:

"Products (i.e. EE-waste) are returned through the 'wrong channels '. It is not possible to ensure that everything is sorted correctly at the collection sites. This generates a sorting process for the waste company, which is not paid for. Our company works without compensation for El-retur. The companies in our industry are very annoyed" Follo Truck Utleie

Sorting was also a challenge for the collection sites within the El-retur system, which reported that it was necessary for activities to be monitored closely. The activities also generated costs for the collection sites. The waste management companies in El-retur expected the collection sites to follow the EE-regulations, but the collection sites were not satisfied with the solution:

"For a large batch of waste, the customer calls us and plans for a delivery. The customer is met by one of our representatives, who secures a correct sorting. The customer is not allowed to leave our area before the products are sorted correctly.

Jf

they do not sort correctly, we have to do the sorting over again. " ROAF Bøler

"We do not get compensation for taking back the products in the El-retur system. We prefer not to handle products from the El-retur system. " ROAF Bøler

The physical flow in the El-retur system is separated in two: the volume that is generated through the 4000 collection sites, and the volume that is generated through other47 waste actors/sites. The activities for the collection sites are defined in the regulations and are, in this sense, coordinated within the El-retur system. The flow generated through the other sites is not coordinated within the El-retur system. However, this volume can also be delivered to any of the 4000 collection sites, but the fact that the products end up at these other premises in the first place is a deviation from the system. Itis not guaranteed that this product flow is integrated in the El-retur system. The figure illustrates:

} }

Coordination within the El-retur system Physical Dow

Physical Dow

No coordination within the El-retur system

Figure 6.3:Coordination of the collection/unction in the El-retur system

r

period

The transport operators had a one-sided responsibility to coordinate towards the collection sites. It included investment in and organization of cages and containers, as well as discussing the schedule (frequency) with the collection sites within their geographical areas, and planning the capacity. The choice of how to organize the physical flow generated extra transport because the collection sites made a reduced effort:

"Cages from the transporter are used for the El-retur products. According to the contract with the El-retur system, the transporter is supposed to provide us with the cages for collection without extra costs. The transporter picks up the cages from all our eight sites when they are filled. Our collection activity consists of eight collection sites. The RENAS products are sent from the seven other collection sites to the main collection site. There is a payoff in sorting the RENAS products. " ROAF Bøler

47 I.e. not defined as a part of the El-retur system, and does not have a contract with the waste management com anies.

120

Case1:The El-retur system

The transport operator experienced a challenge with the cages, which generated extra costs to the system:

"Our task was to ensure that all the collection sites had cages for collection. The cages were without costs for the collection sites, assuming they were filled six times a year. Some of the actors filled 10-15 cages per day. However, a number of collection sites did not fill the cages six times a year, butitwas difficult for us to charge them after the system was started It was difficult to identify this upfront. " Norsk Gjenvinning Oslo

The transport operators need a few days to plan capacity. This creates a time lag towards the collection sites, and the cages and containers are often overfilled at time of pick-up. This presents a challenge to the transport operator because the cages are difficult to stack, and the planned capacity and collected volume do not match.

"Itisa problem to us that the products are not sorted when they are returned Also, the cages are filled up too much, which makes them difficult to stack on top of each other. The products do not necessarily fit the cages that are usedfor collection." Norsk Gjenvinning Skien

"We have implemented a planned route to collect products at the collection sites within our area. We guarantee collection within three days

if

there is an extraordinary need from the collection sites in our area. However, the collection sites call us when the cages are foll, and by the time we get there to pick them up they are overloaded. " Norsk Gjenvinning Skien

The transport operator gets paid per kilo from the waste management companies. Itis as such a direct cost for them to handle cages that do not fit the capacity. The result is that the transport operator has to reschedule the transport and come back another day or utilize only parts of the capacity. Either way, the promised service to the collection site is not fulfilled and costs increase.

The transport function in the El-retur system faced challenges in this period. The transport operators had contracts with El-retur to handle a given number of the 4000 collection sites (according to geographical areas). Coordination with the sites was not straightforward:

"The collection sites were not clearly defined It was a job to identify the collection sites, especially the retailers. The municipalities were relatively straightforward In addition there was a number of what we called "third persons ", where we also collected waste. However, we were able to charge the third persons for transport and rent of cages. " Norsk Gjenvinning Oslo

The transport operators collected volume from the defined collection sites in the El-retur system, but the volume that was collected at the independent actors/sites was not necessarily integrated in the system:

"There are a number of actors that collect volume without being an approved operator. A lot of the volume is of course returned to the El-retur system, but there is no guarantee. As soon as they find a better disposition for the volume that is better paid, it will be used as long as it is legal. We had a challenge with volume that was being exported to Eastern Europe and South America. It was business. It was somewhat on the limit of what was legal, but we found now~ to stop it, and the Regulations did not stop it. " Norsk Gjenvinning Oslo

The volume that was generated outside of the El-retur system was not included in the transport operators' coordination. The figure below illustrates the flow in the transport function:

Coordination within the El-retur system Physical flow

Physical flow

No coordination within the El-retur system

Figure 6.4:Coordination o/the transport function in the El-retur system ]" period

The transport operators delivered the products to the reprocessing units and also faced integration challenges toward these actors:

"We had an issue with respect to cages for collection. The waste management company argued that we had too few cages in the system. However, we had a challenge with the reprocessing units storing products in the cages keeping them from circulation." Norsk Gjenvinning Oslo

"We also had smaller problems in adapting the transport. The reprocessing units were not flexible with respect to opening hours, lunch hours, unloading and loading. This created waiting time for us, and complexity when you have transport routes and time schedules to keep. " Norsk Gjenvinning Oslo

The reprocessing units operated in defined geographical areas and were dependent on deliveries from the transport operators. The transport operators accumulated volume and 122

Case1:The El-retur system

delivered the volume to the reprocessing unit once the transport capacity was filled, and they were able to sendfullloads. The incoming volume from the transport operators in the El-retur system was not satisfactory for the reprocessing units. The volume was too low with low frequencies. A reprocessing unit explains:

"For the EI-retur system, we are dependent upon the transporters. In EI-retur we are given certain geographical areas to work with, and we are a reprocessing unit only."

Elektronikkgjenvinning

"The transport collection route creates a low volume. The transport operator plans the routes according to the collection sites. There is a problem to get a hold of volume from the transport operator. " Elektronikkgjenvinning

"The more volume we can get a hold of the better. It is kilo-kilo-kilo that counts. The more kilos that we trade through our reprocessing unit the more money we make."

Elektronikkgjenvinning

Sufficient volume is a key factor to the reprocessing units. The reprocessing units also include products from actors outside the El-retur system. A reprocessing unit explains:

"20% of the products are returned from the El-retur transport operators, 80% are returned from our own contacts. " Elektronikkgjenvinning

Inthis sense, the reprocessing units also coordinated the multifaceted product flows that were generated in the system. However, this was not defined by the systems, but rather on the initiative of the reprocessing units. The products may well have been traded directly in the secondary market (ref. transport operators statement about exporting products). The figure illustrates:

Physical flow Il>

}

}

Coordination within the EI-retur system

Physical flow

No coordination within the EI-retur system

Figure 6.5:Coordination of the reprocessing function in the El-retur system I" period

6.2.2

The physical flow from 2003 - 2006

Case 1:The El-retur system

The structure of the physical flow did not change to a large degree in El-retur from the first to the second period. The collection continues to be organized through retailers and municipalities (in accordance with the EE Regulations). The collection system consists oftwo types of actors: transport operators and reprocessing units. For the second contract period, the waste management companies decided on a structure with six transport operators, and five reprocessing units. The collection system in the second period is illustrated below.

4000 collection points

Commercial

end-6companies

Scompanies

Figure 6.6: The El-retur's collection system from 2003 - 2006

The system is composed of the same type of actors and functions but some of the activities have been rearranged. The changes in the activity structure included primarily the fact that sorting of the products was moved from the collection sites and transport operators to the reprocessing units.Inthis manner, fewer of the actors had to know the sorting categories in detail. The changes in the sorting activity were needed in order to fill the cages faster and, in this way, increase the transport frequencies. The transport operators experienced improvements as a result of rearranging the sorting activities:

"It helps that the waste management companies have adjusted how we are allowed to sort the products. The consumers do not sort the products correctly in the cages and containers,

which are returned with a mix of various products. " Norsk Gjenvinning Skien

124

Case1:The El-retur system

The coordination in the second period was also adapted with respect to transport planning.

The transport operators were increased from three to six, and the transport operators were allowed to engage sub-suppliers. The increased number of transport operators included the replacement of one transport operator with four actors. The geographical areas were adjusted

The transport operators were increased from three to six, and the transport operators were allowed to engage sub-suppliers. The increased number of transport operators included the replacement of one transport operator with four actors. The geographical areas were adjusted

In document Coordinated action in reverse distribution systems (sider 136-147)