No matter the product stream, reverse logistics is already a complex endeavor. But when it comes to electronics, reverse logistics is further complicated by the presence of residual data and hazardous materials, as well as a complex world of e-waste regulations and data-privacy requirements. As a result, managing electronics responsibly and sustainably in the reverse supply chain requires more expertise than other product streams.

Generally, there are many gaps in the reverse supply chain globally, even in developed markets. Building the capacity to properly process these electronics back through the reverse supply chain starts with building knowledge and capabilities, and SERI is leading the effort with a new online learning platform called R2U.

Understanding the Challenge of Electronics

The world is full of electronics that improve livelihoods everywhere. Thirty years ago, electronics were big, and performed simple calculations customized for a specific purpose. They were mostly used by large entities such as government agencies and corporations, and they weren’t affordable outside of developed regions. They certainly were not connected by an Internet and were definitely not portable.

Fast forward to 2024, and electronics have been incorporated into nearly every aspect of daily life. We have become dependent upon being connected, no matter where we are in the world, including both urban and rural areas. The power of technology has connected our world in ways we could only dream of, and technology continues to elevate the functionality of nearly every device.

But with this technology proliferation also comes a challenge - a challenge that many often don’t consider. We think about new devices being manufactured, distributed, and sold on the store shelf. But all those electronics also travel in reverse at some point in their life. It might be returned shortly after purchase because someone ordered the wrong model number. Or maybe it was defective, and the customer sent it back under warranty to be replaced. Maybe, after three years, it was traded in for a newer model. Or maybe a consumer enjoyed that electronic device for years and it has finally lived its last day and must be disposed of. Regardless of the reason, it is inevitable that electronics will eventually come back through the supply chain.

However, moving electronics through the reverse supply chain isn’t as simple as moving something like clothing. There is often data on the device that must be managed to prevent data breaches. Domestically, local, state, and national regulations create a complex legal environment to navigate. And when trying to move electronics from and to other countries, a whole set of international waste regulations come into play, slowing down the supply chain and adding paperwork and complexity. For all these reasons, electronics returns have the potential for significant risk.

Layering in Sustainability

Beyond navigating these risks, there’s increased pressure for organizations to make supply chains more sustainable. At the same time, there is at least equal pressure to protect the bottom line by finding low-cost options or those with a high financial return. But, especially with electronics, responsible processing typically increases costs, which then often puts these objectives at odds. For sustainability’s sake, it is best to get the device back on the market, but additional expenses are necessary to erase data, test, and refurbish the device to resell it. And with cheaper devices, a decision is often made just based on economics, using a formula like the following: ROI = resale price minus cost of data erasure minus cost to test and refurbish minus transportation costs.

This equation often means these devices are liquidated, auctioned off in truck loads to the highest bidder. But using this approach leaves the seller left hoping the buyer does the right thing. What if there is data that is stolen? What if half of the lot is dumped because it has little value? What if it is illegally exported? The truth is that these types of blind sales for speed and profit introduce additional risks to the seller and the brands being sold. Hope is not a strategy, and we have seen businesses burned for their lack of controls in the reverse supply chain for electronics.

Sustainability requires an informed approach, one that maximizes the value of used electronics while minimizing the risks. It bridges the digital divide by providing used electronics at more affordable prices. It prevents pollution and preserves natural resources. It avoids carbon generation by using electronics to their fullest potential instead of prematurely recycling them. There are so many benefits that come from proper reuse and recycling in the reverse supply chain.

R2U, SERI’s Solution Through Education

SERI has spent the last 15 years helping reuse and recycling vendors to implement sustainable practices through the R2 Standard and certification program. With over 1,100 facilities certified in 42 countries, the R2 Standard has drastically increased the capacity for responsible reuse and recycling in the reverse supply chain. R2 Certified vendors are how you know your electronics are properly reused and recycled, maximizing reuse and recovering materials for manufacturing. R2 Certified vendors align with your circular strategies and your ESG goals.

But R2 Certified facilities don’t cover every geography where electronics are used. And moving used electronics to these 42 countries is not the best practice considering the carbon emissions associated with global shipping.

The world lacks the capacity to properly refurbish and recycle its used electronics, and this need keeps growing with the global proliferation of devices. Expanding capacity in the reverse supply chain involves more than simply spending money to add warehouses, trucks, and processing equipment. What’s also needed is widespread access to education about why electronics reuse and recycling matters and how to do it safely and responsibly.

We must build the individual knowledge to increase the capabilities to properly reuse and recycle electronics coming back through the various reverse channels, which include returns, IT asset disposition (ITAD), trade-ins, tech refresh, collection programs, and recycling. It is all reverse channels, but it is the same ideology.

SERI will continue to help vendors achieve R2 Certification in many parts of the world. But the reality is that many parts of the world are not ready for certification. Certification is not easy, nor cheap. It requires a significant investment. So, while we continue on that front, we also can leverage all the knowledge in the R2 Standard to teach people proper testing, repair, data erasure, and recycling so that it can be done safely and effectively. To do this, SERI is launching a new pilot project in 2024 called R2U.

Our Vision for R2U

R2U takes all the knowledge in the R2 Standard plus much more to develop online learning courses for vocational training. With initial development begun in 2023, R2U will launch with a series of five educational modules focused on data security, electronics sustainability, hazards in electronics, worker safety, and operational process hierarchy. Already well under development, the first online learning course is expected to be rolled out by this summer.

In total, SERI envisions 40-plus R2U courses covering various facets of electronics management. They could include returns management, safety in packaging and transport, parts harvesting, dismantling, hazard assessments, managing legal compliance, waste regulations, data sanitization, and a lot more. We expect the self-directed courses will be grouped into basic, intermediate, and advanced levels, with each expected to take between 15 minutes to an hour to complete. The online lessons will be available on demand.

R2U will be targeted at multiple audiences. Broadly speaking, the curriculum will offer courses aimed at those who may possess little to no prior experience or knowledge about electronics sustainability and need a base-level introduction. We hope that the knowledge gained empowers individuals and organizations to make more sustainable approaches while promoting worker safety and preserving the environment. We anticipate R2U will prove especially useful in regions where the basic infrastructure for the responsible handling of used electronics is either informal or non-existent.

Another aim of R2U is to help raise the bar with existing recycling and reuse organizations. We expect that established facilities will use the learning modules as part of their employee training program. R2U will be sharing best practices and technical concepts with those who have experience in this industry but are seeking a continuous education.

Contributing to R2U

The input and perspective of stakeholders from the reverse logistics industry, including OEMs, retailers, returns-management specialists, and others, will be crucial to selecting and developing the content of applicable learning modules. Because we’re still at the beginning of this journey, experts in reverse supply chains can still easily shape the content of this curriculum. With your assistance, we can create learning modules that you want to incorporate into your own company’s employee and manager training programs.

Additionally, we may need reverse logistics industry experts to review course content. Finally, because SERI is a 501(c)(3) nonprofit organization, charitable contributions are always appreciated and financial support for R2U course development may be tax deductible.

If you or your organization is interested in engaging on this project, please drop us a message at info@sustainableelectronics.org. We look forward to discussing how we might work together to make education available to everyone.

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Jeff Seibert
Jeff Seibert is SERI’s Chief Provocateur. In that role, he provokes change in thought and action around how the world handles used electronics. Jeff’s experience spans a wide range of clients and industries through advertising agencies, on the client side, and as a consultant. In addition to constantly asking “what if,” he is unofficially known as the “chief recycler” in his own family.