Investment Recovery

1. Investment Recovery Marketing 3860 – Purchasing July 28, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University

2. U.S. Environmental Initiatives • Resource Conservation and Recovery Act – Cradle to grave responsibility • Toxic Substances Control Act – Chemicals on list must be disposed of in chemical waste landfills

3. U.S. Environmental Initiatives • Comprehensive Environmental Response, Compensation, and Liability Act – Superfund cleanup responsibility • Clean Air Act – Reduce emissions and phase out CFC’s, etc. and reduce auto emissions by 90%

4. ISO 14000 • ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards in three major areas • Management systems • Operations • Environmental systems

5. ISO 14000 • Management systems • Systems development and integration of environmental responsibilities into business planning • Operations • Consumption of natural resources and energy • Environmental systems • Measuring, assessing and managing emissions, effluents, and other waste

6. Advantages of Selling Scrap, Surplus, and Waste • Additional income • Pollution reduction • Conservation of raw materials • Avoidance of landfill tipping fees • Access to Green markets • Convenience

7. Recycling in the U.S. ($20B+) • 60M tons –iron and steel • 47M tons –paper & paper board • 5.1M tons – aluminum • 1.7M tons – copper • 1.4M tons – stainless steel • 284K tons – zinc • 2.3M tons – glass or cullet • 745M lb – PET plastic bottles • 734M lb – HDPE plastic bottles

8. What detrimental effects can come from a recycling campaign?

9. Categories of Material for Disposal • Excess or surplus materials • Obsolete material or equipment • Rejected end products • Scrap material • Waste • Hazardous waste

10. Disposal Channels • Use elsewhere within company on an “as is” basis • Reclaim for use within plant • Sell to another firm for use on an “as is” basis

11. Disposal Channels • Return to supplier • Sell through a broker • Sell to a local scrap or surplus dealer • Donate, discard, or destroy the material

12. Disposal Channels • Use elsewhere within company on an “as is” basis • Reclaim for use within plant • Sell to another firm for use on an “as is” basis

13. Purchasing and Environmental Performance • Reducing obsolescence and waste of MRO supplies through better mat’ls and inventory management • Reducing the costs from scrap and materials losses • Reducing the training, handling, and other expenses for hazardous materials • Increasing revenues by converting wastes to byproducts

14. Purchasing and Environmental Performance • Reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems • Decreasing the use and waste of chemicals, solvents, and paints through chemical service partnerships • Recovering valuable materials and assets with efficient materials recovery programs

15. What environmentally unfriendly or unsound business practices can result from the improper use of these measures?

16. Purchasing and Environmental Performance • Reducing obsolescence and waste of MRO supplies through better mat’ls and inventory management • Reducing the costs from scrap and materials losses • Reducing the training, handling, and other expenses for hazardous materials • Increasing revenues by converting wastes to byproducts

17. Purchasing and Environmental Performance • Reducing the use of hazardous materials through more timely and accurate materials tracking and reporting systems • Decreasing the use and waste of chemicals, solvents, and paints through chemical service partnerships • Recovering valuable materials and assets with efficient materials recovery programs

18. Investment Recovery Marketing 3860 – Purchasing July 28, 2004 Kimball Bullington, Ph.D. Associate Professor of Operations Management Middle Tennessee State University