BUAD916
– Applied Business Research
A
Research Report on
"Importance
of reverse logistics in Mobile Phone industry."
Prepared
by:
Suman
Chahal
ID
NO. 20151352
Supervisor:
Ray
Ninow
Executive
Summary
This
report is about the importance of reverse logistics related to the mobile phone
industry. This research aims to realize the significance of the reverse
logistics corresponding to the mobile phone industry. The key findings suggest
that discarded and used mobile phones are responsible for accumulating huge
amounts of e-waste. This e-waste discharges harmful components and poses a
threat to the environment and human health. The findings suggest the importance
of reverse logistics for recycling these phones for metal extraction and, if
not recycled, their safe disposal. There are various companies in the mobile
phone industry that have successfully implemented the reverse logistics system.
They have done this through their system or 3PL (third party logistics). The
discarded mobile phones are gathered and then recycled to minimize the harmful
effects of the hazardous components present in mobile phones that pollute the
environment. On reflection, it is suggested that the government could make
regulations to promote reverse logistics for the mobile phone companies to cope
with e-waste. Through innovation, mobile phone companies can manufacture new
phones using old components from used mobile phones, and in this way, a healthy
reverse logistics system can be created with less of an impact on the
environment.
Table of Contents
3.1 Understanding
Reverse Logistics:. 7
3.2 Importance of
Reverse Logistics In The Mobile Phone Industry:. 8
3.3 Short Life
Cycle of Mobile Phones:. 9
3.5 Accumulation
of E-Waste with the Presence of Toxic Components in it and its Harms:. 11
3.6 Need for
Mobile Phone Recycling. 12
3.7 Use of
Reverse Logistics to Reuse or Recycle Mobile Phones:. 15
3.8 Companies
with the Successful Implementation of Reverse Logistics:. 18
4.1 E-Waste Due
to Mobile Phones Discarding:. 20
4.2 Discharge of
Harmful Components Present in Mobile Phone Parts:. 20
4.3 Possible
Retrieval of Valuable Components:. 20
4.4 Importance of
Reverse Logistics for the Mobile Phone Industry:. 21
4.5 Mobile
Company Policymakers to Consider Systematic Reverse Logistics Management: 21
6.1 Need for The
Mobile Phone Industry to Consider the Importance Of Reverse Logistics:. 23
6.2 Need for
Awareness Among the Customers for Mobile Phone Recycling:. 23
6.3 Government
Initiatives to Promote Reverse Logistics:. 24
The
mobile phone is a significant development today that almost every individual uses,
and yet it and other technology hardware can create electronic waste or e-waste
in the order of a million tons (Janse, Schuur, & de Brito, 2010). This can have a
great deal of negative effect on the climate and human well-being because the
breakdown of the mobile phones discharges unsafe elements like lead and mercury,
which are harmful to the climate and human health (Janse
et al., 2010).
Mobile phones are disposed of because they are superseded due to innovation and
technology updates, and consequently, they are expanding landfills alongside
other waste (Erol et al., 2010). It might be said
that a mobile phone model has an exceptionally short life cycle, and in this
way, the client purchases another mobile phone, and the previous adds to the
e-waste (Janse et al., 2010). In addition to
this, developing rivalry among various mobile companies has given buyers
numerous choices, and they can pick the phones depending on quality, features,
and cost (Wang, Yu, & Wang, 2013). Mounting e-waste
from mobile phones has gotten expanding considerations from the government,
society because of manageability concerns (Janse et al., 2010).
Nowadays,
about five million cell phones have been utilized around the globe. Different
countries have n different stan te, but given the world, 16.7% mobile phones
are used in China, 13.4% cell phones are used in India, the US contains 5.7% of
the globe, Brazil used 4.6% whereas the share of Russia is 4.3%. In the above
state, two countries Russia and Brazil, have a greater number of cell phones
than their populations. However, the rapid technology innovation brought
changes in the mobile phone industries. New designs and valuable features lead
to the phone's quick growth and old mobile models' obsolescence. Therefore, the
old version reached their manufacturers for different reasons: buyback offers
warranty claims, or life limit (Abbey, Meloy, Blackburn, & Guide Jr, 2015).
Furthermore,
mobile phone disposal emerged from passive use unevenly dumped in landfills,
polluting the atmosphere with many toxic products, primarily heavy metals.
There was also a need for regulations to govern the deliberate dumping of these
excess mobile phones. Scholarly analysis has shown that no related research has
been conducted in this review to discuss the implementation of the reverse cell
phone logistics method.
In
2019, worldwide cell phone penetration was expected to hit 70 percent,
rendering this market the rapidly expanding field and one of the world's
biggest. At the same moment, China has greater than 1.2 billion smartphone
users, with India projected to cross 1 billion in 2019. Data indicates that
cell phone usage remains the largest in the European area, exceeding North
America by a larger distance. However, with an average of 2.9 billion users,
the Asia Pacific area registered the largest number of smartphone users in 2017
(Statista, 2017).
A
study analysis illustrates that the downfall of the perception of the Nokia
brand by high-tech consumers in the mobile cell field had an irreversible
effect on their company identity and showed the popularity of the Apple company
that was lauded by the same audience (McCray, Gonzalez, & Darling, 2011). In pleasing
smartphone consumers, device color attributes play an important role. A related
report has also shown that awareness is one of the key factors for consumer
loyalty in the smartphone domain. However, the features of the goods and their
quality are said to significantly affect generating a favorable image of the
company in buyers' minds. Authors have shown that quality characteristics can
produce a beneficial impression in customers' minds that will be converted into
a purchasing decision (Armstrong, Kotler, Buchwitz, Trifts, & Gaudet,
2016). A deciding feature for consumer
satisfaction would be the handset's light characteristics, especially the
quality of images and sound. Outcomes from another reverse logistics analysis
showed that consumers' expectations of product characteristics would boost
client purchasing patterns (Miao, Xu, Zhang, & Jiang, 2014). Therefore,
observational research has demons and sets rated that consumers' cell phones
have a stronger influence on sales in this sector.
The
concept for disassembly is a technique utilized by professional lifecycle
workers. Also, study results suggest that this approach will primarily be
included in the electronic smart device recycling phase. This will increase
these items' serviceability and end life cycle goals, such as recycling and
reuse (Desai & Mital, 2003). Scientists
believe, though, that the more the disassembly method lasts, the lower the
gains. The report further emphasizes the significance of becoming active in
bulk recycling to understand such recycling activities (Sodhi & Knight, 1998). The
specification for disassembly procedures allows it possible for the items to be
more refurbishment and recyclable. Moreover, the study emphasizes the value of
non-destructive disassembly while preserving costs and minimizing the context's
effect. Most of the study states that the method of reprocessing and recycling
may be strengthened and made effective, with success factors in project
efficiency for disassembly activities (Güngör, 2006).
In this way, there is a requirement for a reverse
logistics system that includes a successful progression of the discarded mobile
phones due to technical fault or technology update, from the customer to the
manufacturer so that they are recycled or reused (Li & Olorunniwo, 2008). Reverse
Logistics is useful in limiting e-waste and improving consumer loyalty (Janse et al., 2010).
2. Purpose:
This
study aims to realize the significance of reverse logistics, corresponding to
the mobile phone industry. The mobile phone's life cycle is short, and along
these lines, the client purchases another mobile, and the previous one adds to
the electronic waste.
3. Literature Review:
3.1 Understanding Reverse Logistics:
Reverse Logistics is contrary to the
forward supply chain as the products move from the end client back to the
merchant or producer (Abdulrahman,
Gunasekaran, & Subramanian, 2014). In this process, the used products
or discarded products are collected from the consumers, refurbished if required,
or the parts are recycled and made into a new product and thus enters the
supply chain. It is called reverse logistics as the products move in the
opposite direction, from the customers to the manufacturers (Erol
et al., 2010).
It can also be said that reverse logistics
involves arranging and controlling the progression of finished products that
are returned or discarded from the customer to the manufacturer (Li
& Olorunniwo, 2008). As indicated (Erol
et al., 2010), it is supposed to be a
successful administration of the above said exercises for item recovery from
the customer in order to arrange it or recover its value through reusing, and
it has gained significance lately because due to reverse logistics accumulation
of e-waste due to mobile phones can be minimized. Reverse logistics can be
characterized as the way toward arranging, actualizing, and controlling the
effective progression of raw materials, stock, completed products, and related
data to further utilize it in making new products (Wang
et al., 2013). It is exceptionally critical to
spare
Consequently, numerous
organizations are presently considering reverse logistics as a significant
action deliberately to sustain their position in this ever-changing competitive
world (Chiou,
Chen, Yu, & Yeh, 2012). These days clients and
purchasers acknowledge organizations that have implemented reverse logistics
and are successful in their attempt. This, on the other hand, has helped to
build customer loyalty as instead of discarding their mobile phone into
landfill, they can exchange it for a new one by paying a little extra amount(Chiou
et al., 2012).
Figure 1: Activities Involved in The Process
Of Reverse Logistics
The above diagram shows
the various activities involved in the process of reverse logistics. It shows
the collection of the product back from the customer through the process of
collection and selection. After which the product is recycled and returned to
the industry and through the distributor, it again goes to the retailer and
bought once again.
3.2 Importance of Reverse Logistics
In The Mobile Phone Industry:
Reverse
logistics can make the profit cycle simple for the clients and help them exchange
or discount their products quickly. Reverse logistics is also important for
reliable exhibition and a quick reaction to returns, which can further improve
customer loyalty, critical to business success (Chiou et al., 2012; Wang et al., 2013). In the mobile phone industry, reverse
logistics can expand proficiency, retain clients, and encourage industrial
development.
Reverse
logistics management is seen as the key for reducing production cost, improving
customer satisfaction hence achieving a competitive advantage with increased
profitability (Li & Olorunniwo, 2008). It can be said
that through proper reverse logistics, a mobile phone company can save both
cost of production and increased sales (Dowlatshahi, 2010).
3.3 Short Life Cycle of Mobile
Phones:
Rapid development in science and
innovation has brought about a shorter product lifecycle, particularly in
innovation-based products like mobile phones. The life of a mobile phone is said to be normally
around seven years, yet clients in developed nations regularly switch their
mobile phones about every 20 months, driven by both the development of
innovation and the propensity of customers to need a mobile phone with
additional applications (San
& Pujawan, 2014).
Much research can be found about
recycling durable products, however not related to short lifecycle items like
mobile phones. Even though some research suggests that fruitful recycling
requires items to have a long useful life and stable innovation, other methods help
recycle short lifecycle items like mobile phones (San
& Pujawan, 2014). The production cost can be
reduced through reverse logistics as the parts can be recycled instead of
getting new ones, which is quite significant for the mobile phone industry(Janse
et al., 2010). It is exceptionally critical to
spare the climate and common asset
There is a growing competition
among numerous mobile phone organizations to make mobile phones with new
features each day. This rivalry has given numerous alternatives to the
customers, and they can choose mobile phones dependent on quality, highlights,
and cost (West,
2019). The short life cycle is a
significant downside with mobile phones and must be timely disintegrated as the
buyers need mobile phones with new technology and features (Sahay,
Srivastava, & Srivastava, 2006).
3.4 Need for Recovering Valuable
Metals Present in Mobile Phones and How Recycling Can Help in Retrieving These
Metals:
Mobile phones basically cannot be
made without significant minerals - a bunch of them is needed to construct a
mobile phone (Garber,
Matlock, & Walkowitz, 2018). This incorporates silicon,
carbon, calcium, iron, gold, copper, nickel, tin, and aluminum. Regarding
mobile phones, keeping important and uncommon metals available for use is a magnificent
method to spare our planet(Chiou
et al., 2012). When the mobile phone gets
outdated, a portion of its parts have not lost their worth, and leaving it in a
cabinet someplace or discarding it would be a misuse of important materials
which could make some way or another be recycled
(Chiou et al., 2012). It is exceptionally critical to
spare
Metal availability is diminishing,
which has prompted mines getting more extensive and more profound, work costs
expanding, working conditions lacking well-being, and the expense per kg of
minerals going up, all of which make enormous sticker prices for our phones (Garber
et al., 2018). It is critical to decreasing
what you devour and reuse what is left. The metals extricated during the
recycling, including gold, platinum, also, silver – are returned to profitable
use (Janse
et al., 2010). About 16% (by weight) of a
normal mobile phone is considered 'high worth' materials. Metals with high
qualities are present in very small quantities in the environment; therefore,
they are valuable (Silveira
& Chang, 2010). It is exceptionally critical to
spare the climate
Mobile phones contain valuable
metals, for example, silver and gold, and other important assets. Recycling a
mobile phone implies that these assets can be separated from the mobile phone
and reused once more (Sharma,
Panda, Mahapatra, & Sahu, 2011).
There would be an assortment of valuable metals, copper, and plastics
during recycling. Recycling or reusing preserves these important materials.
However, it also diminishes ozone-depleting substance discharges that happen
during assembling and keeping in mind removing and preparing virgin materials (Sharma
et al., 2011).
Phones are made of important
minerals that are progressively getting scant yet can be retrieved whenever
reused. From 1 million reused mobile phones, we can recuperate pounds of copper,
silver, gold, and palladium (Geyer
& Blass, 2010). This chops down the measure of
minerals mined to make new phones. For every million mobile phones that are
reused, nearly 37,500 pounds in valuable metals can be recouped. Also, millions
in gold, silver, and copper could be spared from being discarded. It is
exceptionally critical to spare the climate and common asset Reverse logistics.
It is exceptionally critical to
spare the climate and common asset, and therefore reverse logistics should be
seriously considered as far as the supply chain is concerned (Geyer
& Blass, 2010). Therefore, to recover precious
metals present in the discarded mobile phones, an effective reverse logistics
system implementation is highly significant.
3.5 Accumulation of E-Waste with the
Presence of Toxic Components in it and its Harms:
Discarded mobile phones create a
lot of electronic waste or e-waste. For instance, lead is one of a mobile
phone's components and is considered to trigger the arrangement of malignant
growth, creating cells in the human body when exposed to it (Geyer
& Blass, 2010). It may be acknowledged that a
very small quantity of lead can severely affect the human body. Even, Chromium
and Nickel that are also the components of mobile phone batteries, along with
lead, are equally poisonous metals.
As per (Valente,
2020) in Argentina, a huge number of
mobile phones are consistently disposed of or discarded by the customers, which
discharge metals and hazardous substances and metals when exposed to the environment
and this, in turn, pollutes the environment. Notwithstanding this, Argentina is
said to create per capita of more than 1.5 kilograms of electronic waste each
year, which is considered a very big amount of e-waste, and just 1.5% or not as
much as this less is recycled. Mounting
e-waste has gotten expanding considerations from government, society, just as ventures
for manageability concerns. E-waste has crushing outcomes on the climate. When
mobile phones are inappropriately arranged, chlorine, lead, mercury, bromine,
and other poisonous synthetics in the gadgets antagonistically influence the
Earth (Janse
et al., 2010).
Electronic waste contains harmful
components, and when they are added to the landfills, it is very conceivable that
they may get mixed up with soil and water and pollute them (West,
2019). Mobile phones end up in
landfills. There is the danger that the unsafe substances inside them may
filter into the encompassing area and streams (West,
2019).
3.6 Need for Mobile Phone Recycling
Every year, around 120 million
mobile phones are disposed of. A few of these gadgets are reused or
appropriately reused; a huge number rather turns up in the landfill. What is
disturbing about the ascent in e-waste is that a huge segment is not waste (Geyer
& Blass, 2010). Those disposed of gadgets might
have been recycled, reused, or even repaired. There is a colossal absence of
familiarity with adding to a manageable future (Sahay
et al., 2006).
Figure 2: An Awareness of Mobile Phone
Recycling
One mobile phone recycled is one less that
should be fabricated. Each mobile phone utilized for simply an extra year
diminishes the strain on Earth's limited assets(Chiou
et al., 2012). Each mobile phone refurbished
can have a second, third, or fourth life in possession of another client before
it arrives at its actual finish of-life (Sharma
et al., 2011).
In a not so distant future, the organizations
should consider the reuse and recycling of mobile phones and the recuperation
of the items that can be repetitively used, which is quite useful. This will
empower the organizations to have legitimate coordination's foundations for
recycling items instead of discarding them to the landfill (West,
2019).
Figure 3: Accumulation of Used and Discarded
Mobile Phones
Earlier, the mobile phone
customers used to discard the mobile phones in order to have a new and updated
version of it, however, nowadays, utilized gadgets have become popular, and the
buyers have gotten ecologically cognizant and do not have any desire to toss
the mobile phones in landfills and get fresh ones (Grossman
& Kilkelly, 2018). Consequently, there is a
requirement for an appropriate reverse logistics system in this industry to create
a more responsible economy (Grossman
& Kilkelly, 2018). In the present consistently
changing
One can have some effect and stop
the contamination by reusing the phone rather than recklessly disposing of it. On
account of imaginative advances, up to 82% of materials utilized in mobile
phones can be recycled (Sharma
et al., 2011).
We should consider the numerous
natural, practical, and social advantages from recycling, reusing, restoring –
and selling and exchanging – utilized mobile phones (Geyer
& Blass, 2010). Everybody can affect by buying a
mobile phone by exchanging, reusing, or revamping their pre-owned gadget (Sahay
et al., 2006). Recycling only one mobile phone
spares enough energy to control a PC for 44 hours. On the off chance that we
reused the entirety of the 128 million phones thrown to the side every year in
the US alone, we could spare enough energy to control in excess for a year (Geyer
& Blass, 2010).
In the present consistently
changing business situation, the organizations should chip away at effective utilization
of assets, and this can be financially savvy and eco-accommodating and should
be possible by expanding item life cycles(Geyer
& Blass, 2010). Thus, these pre-owned items'
assortment is significant for a manageable business practice (Jayant,
Gupta, Garg, & Khan, 2014).
3.7 Use of Reverse Logistics to Reuse
or Recycle Mobile Phones:
Reverse logistics is done to
minimize pollution and save the environment. The used mobile phones are
collected and refurbished if required or recycled for metal extraction, and
these can be used to manufacture new parts that can be used in making new mobile
phones. In addition to this, the safe disposal of harmful components present in
mobile phones is also done through reverse logistics if the phone cannot be
refurbished. For instance, mobile phones contain lithium-particle batteries,
and these can cause fires when they end up in the landfill. Recusing mobile
phones will guarantee that these batteries are discarded securely (West,
2019).
Reverse logistics is likewise
picking up significance worldwide because of mindfulness and because of the
exhaustion of assets and pollution of the climate (Abdulrahman
et al., 2014). Reverse logistics prompts
reusing electronic waste because the metals used to manufacture mobile phones
are restricted, and recycling can be considered an ideal method for saving
these metals from getting into the landfill (Silveira
& Chang, 2010). If reverse logistics is
considered appropriately, mobile phones can have a great reuse market(Abdulrahman
et al., 2014). Whether handsets can be reused
depends on their functional condition and a reuse market for mobile phones. For
instance, in the USA, refurbishes use software programs to increase the reused
mobile efficiency; after this, the reused phones are sold to developing
countries like Africa and the Middle East(Geyer
& Blass, 2010).
Latin America has a mobile phone
reuse market as above because of the developing offer of mobile phones here.
Additionally, in Brazil, a minimization program related to mobile phone
electronic waste is significant because many zones do not have a legitimate
removal office in any event for waste (Silveira
& Chang, 2010). Moreover, if the
Moreover, if the mobile phone
works and is in acceptable condition, it tends to be revamped and given as a
charity to broaden the mobile phone's
life (Grossman & Kilkelly, 2018). Purchasers hope to exchange an
old item when they purchase another one. For instance, every time a customer buys a new Apple product at Apple,
he is eligible for a discount if he wants to exchange it with an old product
(Supply Chain Digest, 2009). Suppose the product is not eligible for the
discount; his phone can be recycled for free. In the case of a mobile phone or
Apple iPhone, a customer enjoys it until it is time to upgrade it. In this way,
old mobile phones are gathered and brought back to the Apple factories. The mobile
phones are then dissembled, and the parts like battery, microphones, speakers,
circuit boards, screens that can be used in new phones from the old phones are
collected. This way, it can save much money as production costs (Supply Chain
Digest, 2009).
Mobile phones might be returned at
various phases of their lifecycle. They may go for remanufacturing, fix,
reconfiguring, and reusing, depending on their working condition. For instance,
at Dell, if a product is returned, it is
returned to usefulness by repairing it if required and then resold through
its Global Dell
Outlet, and each such product carries
a new warranty, and if it cannot be repaired, it is recycled responsibly
(Dell,2020). E
-was
Figure 4: Showing Life Cycle of Mobile Phone
The above figure shows an extended
life cycle of a mobile phone through reverse logistics. The used mobile phone
is recycled, and the metals are extracted from it, and these are again sent to
the manufacturing unit where a new phone is made from the extracted metals, and
it is packaged and ready to be brought to the market for selling. A decent
number of mobile phones contain huge
This reduces production cost as
parts from old mobile phones are recycled to make new mobile phones(Geyer
& Blass, 2010). Thus, it is required to
successfully and productively attempt reverse logistics exercises (Sahay
et al., 2006).
Recycling guarantees that valuable
materials can be recycled, reducing the extraction of new raw materials. In
numerous cases, mobile phones can be restored, re-utilized, or effectively
reused through reverse logistics (San
& Pujawan, 2014).
Metals recovered from reused
phones are adaptable—they can be utilized in gems making, gadgets, and car
production. Recovered plastics can be reused into plastic segments for new
electronic gadgets and other plastic items, for example, garden furniture,
plastic bundling, and vehicle parts. When battery-powered mobile phones'
batteries can never again be reused, they can be reused to make other
battery-powered items (San
& Pujawan, 2014). There is a need for powerful
reverse logistics. The executives should be utilized as a positive benefit
place to cut costs and improve consumer loyalty.
3.8 Companies with the Successful
Implementation of Reverse Logistics:
Apple has been a very good example
of reverse logistics systems, and it has also been successful in this. At
Apple, 15 different models of iPhone are disassembled in order to recover
valuable metals like Copper, Nickel, and Aluminum so that they can be reused
(Supply Chain Digest, 2009). After recovering these valuable metals, they are
sent into the manufacturing process to recycle them. The Cobalt used in making mobile batteries is
recovered through the disassembling process and used for making new Apple phone
batteries. For doing this, the Cobalt is combined with scrap collected from the
manufacturing sites (Supply Chain Digest, 2009). In this way, the precious
metal is recycled. Apple can do this through its Apple stores, and service providers
network globally. Apple has optimized programs for its iPhone screen repairs
and battery replacement. This has reduced the number of iPhones to be discarded
by the users and has further helped reduce e-waste (Apple, n.d.).
Vodafone is a
part of RE: MOBILE, and it is a mobile recycling program in the industry. RE:
MOBILE is the only recognized scheme for recycling mobile phones in New Zealand.
RE: MOBILE is not for profit scheme controlled and managed by Telecommunications
Forum (TCF). RE: MOBILE ensures that the telecom
industry manages e-waste responsibly
RE: MOBILE has been accredited for its high
environmental standards. The collected, used phones are refurbished and
exported to other developing countries (Juliet Jones, 2020). If the used phones
cannot be repaired for some reason, then it is dissembled, and the valuable
components recovered from them are recycled. From the profits derived, a
percentage of it is donated to the New Zealand charity program- sustainable
coastlines for contributing to its hard work for waterways and coastline (Juliet Jones, 2020).
Reverse logistics in any firm
would need extra time and attention for its proper management. For this, agents
who excel in collecting used mobile phones, assembling, and recycling can be
hired. For instance, in the USA, end-of-use cell phones are collected by
municipalities as they are typically considered to oversee waste
management. These are taken back by
original manufacturers as part of their environmental responsibility. Through
3PL, they usually outsource these operations.
Some 3PL are Greener Solutions in the UK and ReCellular and PaceButler
in the USA, who have successfully collected used mobile phones and taken this
as their business opportunity. They are the most proactive in mobile phone
collection and handling directly. The used mobile phones are collected through
drop-off bins and prepaid envelopes and boxes (Li
& Olorunniwo, 2008).
Similarly,
Samsung partnered
with 3PL Newgistics and Postal Service of US for its buyback program in 2007 in
order to start its recycling program, Samsung Take-back And Recycling (STAR) as
an initiative to reduce e-waste and has been able to recycle around 13 million
pounds of e-waste from its products like mobile phones, printers, and Laptops.
It has established drop-off areas in more than 190 locations to take their
unwanted electronics (Partridge,
2010). The customers can use a prepaid
Smart Label and drop them into their mailbox in order to return old printer
cartridges to Samsung
Through
the recycling program, Samsung ensures that used mobile phones are safely refurbished
or recycled for their usable components like cartridges (Partridge, 2010).
4. Analysis and Findings:
4.1 E-Waste Due to Mobile
Phones Discarding:
A decent number of mobile phones
contain an accumulation of e-waste due to discarding of mobile phones by the customers
is a global issue faced by almost every country today as the mobile phones end
up in landfill, and there is the danger that the unsafe substances inside them like
lead and mercury may filter into the encompassing area and streams and pollute
them. Millions of mobile phones are disposed of consistently globally every year,
which poses a threat to human health and the environment, and as such,
discarded mobile phones have become the quickest developing type of electronic
waste (E-waste).
4.2 Discharge of Harmful Components
Present in Mobile Phone Parts:
When discarded, mobile phones discharge
hydrocarbons into the air and filter poisons into the grass, soil, trees,
crops, and groundwater when copied and unloaded. Few micrograms of lead present
in mobile phones are considered to trigger cancer-producing cells in the human
body. Nickel and chromium are similarly poisonous metals, along with
lithium-particle batteries, which can cause fires when they end up in the
landfill. A decent number of mobile phones contain huge
4.3
Possible Retrieval of Valuable Components:
Mobile phones contain valuable metals,
for example, silver and gold, and other important assets. Recycling a mobile
phone implies that these assets can be separated from the mobile phone and
reused once more. There would be an
assortment of valuable metals, copper, and plastics during recycling. Recycling
or reusing preserves these important materials as they are scarcely present.
4.4 Importance of Reverse Logistics
for the Mobile Phone Industry:
The role of reverse logistics in the
mobile phone industry is to prompt reusing e-waste through the successful
gathering of discarded mobile phones, and they are re-usage and recycling by
the manufacturers. During the recycling process, there would be an assortment
of valuable metals, like copper, present in mobile phones as they have high qualities
and have become scarce due to their overexploitation. For instance, an iPhone
contains 0.03 grams of gold, 0.3gms of silver, and 0.01grams
of palladium. It comprises 25 grams of aluminum and around 15 grams of copper,
respectively, and about 95% can be recycled.
Therefore, it can be said that
additionally, reverse logistics can be useful in removing such waste and
recuperate materials that have high qualities as recycling or reusing preserves
the important materials.
Mobile phone companies like Apple
and Vodafone have implemented a successful reverse logistics system. Through
it, they can satisfy their customers, increase their customers' loyalty, get a
competitive advantage, and reduced their production cost as they are using
components from the used or returned mobile phones and making new mobile
phones. In this way, they have realized their responsibility to save the
environment.
4.5 Mobile Company Policymakers to
Consider Systematic Reverse Logistics Management:
The mobile phone producing industry must be
prepared to allow the customer flexibility of end-of-life (EOL) mobile phones
to the specialist organization to reuse them. The industry chiefs must have
enough information to characterize the points and advantages before sending the
discarded mobile phones to specialist organizations. It might have the option
to persuade about the organization's objective and wanted targets to the
specialist organization. The top administration should precisely comprehend the
objectives and destinations of the organization need to accomplish. The issue
tended to here is to manufacture a quality choice help approach to assess and
determine the best reverse logistics specialist organization.
Reverse logistics is highly
significant for mobile phone companies. Reverse logistics is beneficial for
reducing production costs. A systematic RL can help the company in meeting its
goals, which are mainly maximizing profit and at the same time reducing the production
cost because parts of used mobile phones can be recycled to be used in new
mobile phones.
Reverse logistics prove to be
helpful to minimize the e-waste due to mobile phones and suggests recycling,
remanufacturing, and reusing them. This would help avoid the harmful components
present in mobile phones to contaminate the environment. Moreover, many
valuable components present in mobile phones can be retrieved and reused in
other areas. This will further save them from depletion. Developing green
concerns and progression of reverse logistics ideas and practices have spread
concerns for the environment. In the present Mobile phone companies like Apple
Inc. have successfully implemented reverse logistics and seeing its benefits. The
return policy, recycling, and remanufacturing are the major areas they are
focusing on to enhance customer satisfaction and increase customer value and
competitive advantage. By doing this, Apple can fulfill its responsibility
towards the environment and the community. A decent number of mobile phones
contain huge volumes.
Due to the growing demand for updated versions
of mobile phones, especially in developing countries, competition has also
increased, but awareness about natural issues, economical turn of events, and
legitimate guidelines have made many associations receptive to reverse
logistics. We should consider the numerous natural, practical, and social
advantages from reusing, reusing, restoring – and selling and exchanging –
utilized mobile phones. A decent number of mobile phones contain
6.1 Need for The Mobile Phone
Industry to Consider the Importance Of Reverse Logistics:
Improvement of a sound reverse
logistics framework is valuable to natural security, and the organizations may
improve their budgetary well-being by giving the return skillfully. The mobile
phone companies should establish reasonable and efficient reverse logistics
channels as the economic value, instead of only focusing on forwarding
logistics. Mobile phone companies should invest more in developing a new
recycling system and integrating forward and reverse logistics into full
account. R
6.2 Need for Awareness Among the
Customers for Mobile Phone Recycling:
Customers ought to be urged to
abstain from discarding a mobile phone with unsorted waste instead. The
customers should be aware of the harmful impacts of e-waste on the environment
and human health. They should be encouraged to exchange their mobile phones for
new ones or to be given to someone who cannot afford it for reusing it. For instance,
Dell offers 10% off on their electronics & accessories if the customers
donate a PC to the National Cristina Foundation of US to help disabled and
underprivileged people in the community (Chiou
et al., 2012). When gathered, mobile phones
should be assessed to decide if they are appropriate for recycling, with or
without further fix (Wang
et al., 2013).
6.3 Government Initiatives to
Promote Reverse Logistics:
Reverse logistics practices help
the enterprise to develop reverse logistics strategy and government to make
industry policy. It is important to spread awareness about reverse logistics to
enhance reverse logistics' publicity and step up the related legislation. Not
only highlight the importance of reverse logistics, but the government should also
encourage enterprises to realize the value brought in by reverse logistics and
implement it in their business practices. For instance, according to the European
Union's WEEE (Waste Electronic and Electrical Equipment), the producers' responsibility
is to manage and finance all WEEE collection and treatment. The US
Environmental Protection Agency (EPA) has mentioned in its guidelines regarding
the disposal of e-waste responsibly (Erol
et al., 2010). It also states that the
manufacturers should either take back used products or pay extra money while exporting
their products to the EU. This has made manufacturers responsible for their
products. This also gives manufacturing firms incentives through reuse or
recycling. Reverse logistics in any firm would need extra time
7. Reflection:
A lot more research work is required in this specific
area as the domain is quite vast so that more people are made aware of the
importance of reverse logistics in this specific industry. The awareness would
encourage the entrepreneurs to realize the significance of reverse logistics
similarly as they consider forward logistics. A lot more
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