CSCMP's Supply Chain Quarterly
February 23, 2012
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Supply Chain Executive Insight E-Newsletter
Each month the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
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Free Articles From The Current Issue
Who keeps the engines of global commerce running?
Although what supply chain professionals do every day impacts commerce everywhere in the world, their role in corporate success and competitiveness generally has remained in the background.

Emerging consumer markets: the new drivers of global economic growth
Consumption is still largely concentrated in North America and Western Europe, but consumers in emerging markets are stepping onto the world stage in greater numbers.

Global trade trends down as local consumption slowly grows
Global trade levels declined by 1.3 percent in Quarter 3 of 2011 while domestic consumption continued to grow.

Time to come home?
To offshore, nearshore, or "reshore"? A total cost of ownership (TCO) analysis can answer that question. For some companies, TCO analyses are suggesting that manufacturing close to the point of consumption is the best choice.

A hard look at the soft side of performance
Supply chain scorecards typically focus on operational metrics. But if companies want to capture a true picture of supply chain success, they need to measure employees' interpersonal performance, too.

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Forward Thinking

Many retailers ignore hazards when handling returned merchandise

Forward Thinking
Unaware that many consumer goods contain hazardous materials, retail store personnel may create dangerous situations in reverse logistics operations, says industry association.

A surprising variety of consumer goods contain hazardous materials (hazmat), but retailers' employees who handle returned merchandise often are unaware of the potential hazards inherent in some of the items they receive, store, and ship back to warehouses. As a result, they may unknowingly violate laws and regulations while putting their companies at risk for penalties, lawsuits, employee injury, and property damage.

Most people recognize that products like household cleaners and solvents are likely to contain potentially dangerous chemicals but may assume those products don't require special handling because they're in consumer-ready packaging. Retail associates, moreover, may not think of items like light bulbs, health and beauty care products, aerosols, some medicines, and batteries as hazardous. Other potentially dangerous items include most consumer electronics, which may contain lead and mercury as well as lesser-known toxins, and used power equipment that's returned with fuel, oil, or volatile vapors inside.

Even regulated products that were properly packaged, documented, and handled when shipped to a retailer's distribution center often aren't recognized and treated as hazmat when consumers return them, according to Jack Currie, administrator of the Council on Safe Transportation of Hazardous Articles (COSTHA), an industry association that is working with retailers and U.S. government agencies to improve safety in reverse logistics operations involving consumer goods. That's partly due to a lack of awareness among store associates—typically a high-turnover, part-time, or seasonal position that may be overlooked when companies conduct hazmat transportation training. As a result, customer service or stockroom associates often toss hazardous (and frequently incompatible) items in any handy cardboard box or returnable tote and send them back—undeclared, unprotected, and often mislabeled—to a warehouse or distribution center, thus putting those employees and facilities at risk of injury and property loss.

Thanks to retailers' increasingly liberal returns policies and the shrinking life spans of consumer electronic devices, the amount of hazardous consumer goods in the reverse logistics stream is certain to increase. One way retailers can address this growing problem, experts say, is to ensure that anybody who could be called on to handle returned consumer goods—whether at a customer service desk, in a stockroom, in transportation, or at the warehouse—receives job-appropriate hazmat safety training, such as that mandated by the U.S. Department of Transportation.

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