| In the first part of this article, the problem of solid waste was dealt with, with a history of the evolution of the concern with its correct disposal, the various international discussions on the subject and the policies and solutions given, with the German and Brazilian cases. The emergence of the concept of shared responsibility in the sustainable supply chain was also addressed, with the European Union's program of targets for its different countries, for the recycling of this waste. In this second part, the issue of reverse logistics in Brazil will be addressed. THE CHALLENGE OF REVERSE LOGISTICS IN BRAZILThere is a trend that, with the regulation of the National Policy on Solid Waste (PNRS – Law 12.305/2010), some of the associations of Brazilian companies adopt a model for reverse logistics similar to the European one. reverse are associated with the generation of a positive financial result. In Brazil, the large geographic dimensions and the low density of cooperatives, sorting companies and recyclers are factors that contribute to the increase in collection costs. On the other hand, unlike Europe, which uses specialized transport services for waste collection, in Brazil the social inclusion of collectors' cooperatives can reduce this cost at the beginning of the process. enough to guarantee the flow of all waste generated in the national territory. Figure 5 illustrates the geographic distribution of cooperatives and recyclers in Brazil and indicates a potential structural gap, which should culminate in the need for investments in industrial units for both sorting and recycling. Roughly speaking, we can imagine that each cooperative of collectors is capable of separating around 1.200 tons of waste per year, forming a national capacity of around 624 tons per year. Considering a volume of post-consumer packaging waste of around 17 million tons/year, we found that the inclusion of cooperatives in the current format in the waste collection and sorting process will not be enough. Another point worth mentioning is that the availability of cooperatives is not uniform, leading to large gaps in the North and Northeast of the country.
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| Figure 5 – Geographical distribution of Cooperatives and Recyclers in Brazil |
The solution to this situation is more complex than it might seem, as cooperatives are not industrial units and do not expand easily. The effort to give cooperatives industrial scale goes beyond investments in equipment; there is a need to elaborate a dense social inclusion plan (see Table 3). |
| Table 3 – The challenge of social inclusion of waste pickers |
| In addition to the human issue, planning the proper location for sorting facilities, recyclers and other waste disposal sites is essential so that the cost of waste collection and disposal is as low as possible. Just as companies scale and locate their plants and distribution centers to reduce distribution costs, this activity is necessary to reduce costs with reverse logistics. , we believe that these depend on the development of the market for recycled and/or waste-based products. Investment in research and development (R&D) and the process of raising consumer awareness on the subject are essential factors for this growth. Through R&D it becomes possible to identify ways of using waste in packaging and products, ensuring their safety conditions. Eco-design is a very strong R&D activity in this regard, as it addresses image and product development in line with the main environmental indicators. In this context are:
• Reduction in the volume of materials to be used in making the product and its packaging, in order to minimize the use of natural resources and generate the lowest possible volume of post-consumer waste. • Design of the product and packaging in order to maximize the value of the waste that will be generated, that is, its parts must be detachable, allowing the proper sorting of its waste and its maximum recycling or reuse. Pounch (flexible) packaging, for example, has a mix of layers of “inseparable” materials that can make recycling unfeasible. Perfume packaging whose aluminum spray is mounted inseparably from the glass has its recycling potential reduced, generating waste that will have to go to a less noble destination. • Choice of materials not only for their ability to meet product performance criteria, but in order to minimize environmental impacts in their life cycle, such as water and energy use, CO2 generation, degree of recyclability, which may also include impacts of a social aspect (it may be preferable to use a material that will generate income for a needy community and provide the growth of a new economic sector than to use one already produced by large industries, in addition, of course, to choosing suppliers that are not involved with slave or child labor and that do not provide contact between living beings and toxic substances). In general, eco-design should generate products and packaging with lower economic, environmental and social costs. However, eco-design decisions are still within a strategic sphere, as they provide innovations in terms of product appearance, generating the need to develop communication processes that are more in tune with consumers. In addition to eco-design, in Europe several companies are already seeking cradle-to-cradle certification (from cradle to cradle), offered by MBDC consultancy – McDonough Braungart Design Chemistry, through which there are guidelines for the development of products within a sustainable context. Each level of this certification refers to a different set of requirements that guide R&D efforts and that, by defining targets for the use of post-consumer waste in product development, generates a market for them (see Table 4 on the requirements guidelines for achieving each level of cradle-to-cradle certification). In the context of research and development, all efforts are made to make technologies available for the use of recycled materials as raw materials and for recycling and transforming waste. Turning to consumer awareness, we can say that this is a key factor in leveraging the market for sustainable products. Once the consumer is aware of the issues involved, he should be able to choose between a more or less sustainable product. This possibility of choice, however, does not depend solely on consumer knowledge, requiring reliable and impartial communication on the product as a basis for comparison. This communication can be carried out through the provision of information on product labels, which may be associated with both the processes involving the product and the actions taken by the company. The labeling of green seals, cradle-to-cradle certification or even the company's participation in the reverse logistics program for waste, such as Ponto Verde, are already common in Europe. Taking into account investments in R&D and additional costs needed to offer sustainable products on the market, at first, their prices tend to be higher than those of other products. This differentiation in prices, however, tends to be reduced, both because R&D efforts should generate products with less need for material and due to the tendency to reduce prices of recycled raw materials, with the scale gain in production that will occur due to the establishment of recycling targets.
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| Table 4 – Cradle-to-Cardle Certification: triple-bottom-line |
| The maintenance of premium prices for sustainable products can be a strong barrier to mass sales, especially in developing countries. In these cases, the rapid increase in the supply of recycled materials becomes even more important, as the scale gain in the production of recycled materials can reduce the costs of this type of raw material, avoiding the need to pass on the cost to the price. .REVERSE LOGISTICS SOLUTIONS IN THE WORLD Faced with all the issues that involve the transformation of the supply chain into a sustainable chain, there are several steps to be taken. Brazil is now in the post-regulation stage of the National Solid Waste Policy, in which the sectors must present to the Government a proposal of goals and a plan that shows their viability. This step should contain several surveys and analyzes to ensure that the problem is understood and the change can then be effective:
• Mapping of the current capacity (in tons) of each element necessary for directing waste within the hierarchy defined in the legislation (collection, sorting, recycling, composting, incineration and disposal of waste in landfills); • Capacity gap assessment and specific solution structuring for each area, identifying and explaining responsibilities; • Incentive plan for the implementation of the necessary new units (letters of credit); • Elaboration of a proposal for the social inclusion of collectors in the context of reverse waste logistics; • Identification of the best locations for positioning each element necessary for directing waste (Reverse Network – Solid Waste), in order to minimize handling costs; • Definition and disclosure of the responsibilities of each of the actors involved in the process (production industry, consumers, etc.); • R&D investment plan for each of the actors involved; • Definition of letters of credit for necessary investments in R&D; • Responsibilities communication plan (selective collection); • Standardization and communication of environmental and sustainable labels for companies and products; • Characterization of the current waste market (prices, forms of commercialization, relationships in the chain, etc.) and projections for the next ten years; • Review of taxes and fees applicable to the sale of waste, recycled products and post-consumer recycled products. |
| CONCLUSION There are countless changes in the supply chain transformation process, but the most relevant is the change of vision. Leaving a unilateral vision, focused only on independent economic development, and moving towards a triple-bottom-line vision, where social and environmental issues gain great relevance, is, in fact, the biggest challenge. The speed of this change in the chain is which makes it frightening, as this is not a process of gradual adequacy of the market, but rather a change driven by the glimpse of problems with the quality of life of future generations. The engagement of companies is not an option, it is a global decision. The companies that manage to engage in the transformation process more quickly will become increasingly competitive, managing to reduce costs and gain market share. In developing countries, the change in the supply chain supplies have a greater degree of complexity than in developed countries, mainly because the size of social problems are greater. These social problems directly impact the distribution of costs associated with initial changes, as these cannot be fully passed on to consumers. In this context, work to minimize the costs associated with the process should be the source of greater effort. In the specific case of Brazil, in addition to the need for a large project to design the reverse network and its alignment with the process of including waste pickers, it is it is still necessary to organize the forms of communication with the consumer, not only about the relevance of their role within the reverse logistics process (selective collection and disposal of waste by material), but also about how products and packaging can be compared in terms of their environmental and social characteristics. Society, in general, is involved in this challenge, with the government, the producing industries and citizens being the main actors for change. |
| BIBLIOGRAPHIC REFERENCES Abracelpe, Special Section – Panorama of Solid Waste, 2007. Europen, Packaging and packaging waste statistics 1998 – 2006, 2009. NEYMAN, Monika T. The Environmental Law System of the Federal Republic of Germany. Annual Survey of International & Comparative Law, 1996. |
Gisela Mangabeira de Sousa
https://ilos.com.brGisela Sousa is Executive Partner and Senior Manager of Consumer Goods at ILOS. She has already participated in several projects associated with logistics and supply chain for large companies. She has extensive experience in the topic of sustainability in supply chain / reverse logistics and in logistics and supply chain for the healthcare sector. She holds a degree in civil engineering with national and international specializations in logistics, supply chain and operations.
