Manufacturer Debuts 'Single Source' Green Solution to Returns Management

Aug. 12, 2010
Program allows manufactures to recapture millions of dollars that are now lost employing old methodologies for the handling of returned items

Consumer Product Services Group, Inc., of Deer Park, N.Y. announced on August 12 that it has begun implementing its 'Single Source Solution' business model which includes reverse logistics of returned items, remanufacturing, recycling and re-selling of brand name appliances. The program includes the complete repair of all major brand appliances including microwave ovens, refrigerators, washing machines, dryers, power washers, grills, coffee makers, shavers and many other large and smaller appliances.

"We have built a model that responds to the environmental concerns caused by the improper disposal of millions of items returned to stores annually and to millions of dollars in fines that are being levied for illegal dumping into landfills. We have built and tested and are executing a new model, one designed to allow manufactures to recapture millions of dollars that are now lost employing old methodologies for the handling of returned items," said Darren Krantz, CEO.

Part of the need for this solution is based on e-waste rules that numerous states have adopted, the company explained. New legislation emerging from some states regarding "extended producer responsibilities" will shift liability back to the original producer and not the retailer performing (DIF) destroy in field. Similarly, companies are understanding that there are new revenue opportunities, engineering quality reporting, improved velocity, cost reduction as well as product control issues from managing the reverse supply chain through a third party.

"For manufacturers that endeavor to refurbish or remanufacture internally, the infrastructure and physical plant costs are many times not justified in the ROI. Manufacturers are not in the business of remanufacturing goods. It is not a core competency. Recovery rates are typically low, quality varies widely, specific data requirements are not generally captured and secondary sales channel relationships are not extensive, resulting in lower recovery dollars, " said Rick Hamilton, president of CPS which specialized in major and small appliances, outdoor power equipment, power tools, personal care and other products.

CPS has developed a complete end-to-end solution to address each of these current operational strategies on a customized basis and improve the results for both the manufacturer and the retailer, with each gaining the knowledge that products are tracked through the process, thus benefiting from the ultimate form of recycling, which is providing a second (and third) life to more than 80-90% of the products processed by CPS.

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