COSTHA ANNUAL FORUM 2008 March 11 – 13 th St. Petersburg, Florida

1. COSTHA ANNUAL FORUM 2008 March 11 – 13th St. Petersburg, Florida

2. Definition: The return of goods fromthe marketplace to the vendor for any reason What is “Reverse Logistics”?

3. Manufacturer • Vendor • Distributor • Shipper • Retail Store • Sales Department Who receives these returned goods?

4. Damage • Defective • Malfunction • Obsolescence • Out of Business • Product recall • Wrong delivery • Other Reasons for return:

5. Sources of Reverse Logistics Marinas, Parts Stores Specialty Boutiques Pharmacy Hardware Grocery Building supply Recall coordinators Other? “Big Box store” Auto, ATV, Motorcycle Dealers Department store Catalog sales & Warehouses Independent sales agents Convenience stores

6. Perfumes and fragrances • Cosmetics • Paints and coatings (including pails, cans, nail care) • Construction Adhesives • Aerosols • Paints, Insecticides • Household cleaners • Automotive products • Adhesives • Solvents • Battery operated electronics • Gasoline fueled equipment & Internal combustion engines • Chain saws, Weed whackers • Generators • Power washers • Auto, Boat, ATV, Motorcycle • Replacement parts • Camping Equipment Fuels (Propane, gas, sterno, etc.) Stoves Heaters Lanterns Common commodities found in “Reverse Logistics”

7. Verification of return or replacement • Incident control • Investigate product failure • Quality control • Improve economies of scale for reuse, recycling, or disposal • Sustainability impact – reduction in transportation miles from retail stores Benefits of Return Logistics

8. Maintain safety and value of the product (eliminating unauthorized sales in flea markets, garage sales, and over the Internet) • Recycling or remanufacturing • Limit waste generation • Ensure proper disposal (“Green initiative”) Benefits of Return Logistics

9. YES! In some cases, products entering reverse transport need to be shipped in accordance with regulations governing the safe transport of dangerous goods. Can these be hazardous materials?

10. Packaging used? Normally the most convenient. • Is this packaging adequate? • Are materials placed in the packaging safely? • Are chemicals segregated to prevent unintended reactions? How Reverse Logistics Works:

11. USPS Air Express Common carrier Private carrier How Reverse Logistics Works:

12. Pipeline and Hazardous Materials Safety Administration(PHMSA) a department of the US Department of Transportation (DOT) Transportation is Regulated

13. “Hazmat employee” §171.8 and Part 172, Subpart H Opportunity to introducenew section in 49 CFR Preparation for Transport:

14. “Regulation alone is not enough to fulfill our safety mission. We rely on partners, like COSTHA members, to help protect the public and the environment from careless or non-compliant shipments” “The partnership we are entering will develop and introduce practical safety solutions that work for the public and the regulated industry.” DOT/PHMSA’s position:

15. “The industry has established an excellent safety record for regulatory compliance and safety in the distribution of hazardous materials.” COSTHA’s ROLE in REVERSE LOGISTICS:

16. We now need to examine the reverse logistics process where: • the person packing the returns may not be a trained hazmat employee; • the packaging may not be the same as when it was originally shipped; • the person preparing the returns may not be aware of the hazards associated with transportation; • the items shipped may be subject to EPA Hazardous Waste rules. COSTHA’s ROLE in REVERSE LOGISTICS:

17. “Through this partnership, COSTHA and PHMSA can openly discuss the issues and provide solutions to enhance transportation safety” Win – Win Outcome:

18. Obtain industry input at: • organized workshops • discussion groups • meetings • forums Goals and objectives:

19. Partner with PHMSA and EPA to: • Develop acceptable and achievable standards • Introduce rulemaking Goals and objectives:

20. Assessment of the reverse logistics issue • Introduce standards and guidelines • Implement systems; improve training & education • Identify required resources to control transport risk • Incident prevention • Increase reuse/recycling; improve sustainability • In-store risk reduction Desired Outcomes:

21. WHO? • COSTHA Members • Other Non-member Interested Parties • WHAT? • Identify funding needs and resources • Education and Outreach • WHERE? • Scheduled meetings – COSTHA, US DOT, US EPA Moving Forward with Reverse Logistics:

22. Open Mic Are there any Questions or Comments from: • Governmental Agency Personnel • COSTHA Members • Other Non-member Interested Parties

23. DOT PROPOSED SECTION 49 CFR 173.157 • Hazardous Materials in Reverse Logistics offered via highway, rail or vessel. • Definitions: Reverse Logistics, others needed? • Limited Quantities and Consumer Commodities in: • Original packaging, or • Inner receptacles are intact, then repack into strong outer packaging with suitable cushioning material and securely closed, or • Inner receptacle are damaged, leaking, etc, then repack with absorbent material and/or suitable leak-proof plastic liner. • Internal Combustion Engines • Batteries or equipment powered by batteries • Materials authorized for transport according to an exemption or special permit. • Salvage Packaging

24. EPA Semi-Annual Agenda 40 CFR 273 • Regulate Hazardous Consumer Product Waste as Universal Waste. • Consumer Products in Reverse Logistics not considered a Solid Waste until determined by the Manufacturer. • Deferring waste determination will simply the regulations within the supply chain – eliminating unnecessary costs, while protection (and improving) the environmental impact. • Allows the most knowledgeable party – the manufacturer – to make resuse, recycle and disposal decisions.

25. COSTHA The COSTHA partnership with PHMSA is a commitment to moving this initiative forward COME JOIN US!

26. Contact Information: COSTHA 7803 Hill House Court Fairfax Station, VA 22039 Phone: 703/451-4031 Fax: 703/451-4207 Email: mail@costha.com QUESTIONS? Presentation creatively designed by H.Skolnik and R.Jessop