Do you have a WEEE problem?
07 March 2007
The WEEE Directive is now a reality in the UK, with many electronics businesses unaware or unhappy with a prospect of being responsible for the recycling of their branded products. But it’s not all bad news for the industry, according to Paul James, who heads up WEEE services at DHL’s Environmental Compliance Solutions. With careful planing, he believes business can turn an additional cost in competitive advantage.
The WEEE Directive was developed by the EU as a way of ensuring that producers of electrical and electronic equipment pay for the sound management of their products when they come to the end of their useful lives.
As with most directives that emanate from Brussels, the realities of enacting the proposed legislation has taken far longer and been much more complicated than anticipated. It’s not surprise to learn that whilst the Germans, Irish and Dutch introduced the new legislation some time ago, the UK was one of the last countries to sort out how the directive will be introduced into national law. After several false starts and public consultations, the new WEEE Regulations finally came into force in January 2007. But businesses have no time to lose as those obligated as ‘producers’ under the new regulations need to register with an approved producer compliance scheme by 15th March and be able to manage their discarded products by July 2005.
Inevitably, there is still a fair degree of confusion, especially among many smaller businesses, about the issue of obligation, what products are covered. Who is responsible for picking up the WEEE tab, and how do they use this? In simple terms, the directive says that it is the ‘producer’ of the product that is responsible for the collection and recycling of items covered by the directive. But be careful, as the definition of a producer is defined as any business that places the electrical product on the market in the UK. If the product is name in the UK, then it will be the brand owner who is responsible. If imported, then the importer of record, regardless of the brand of the product.
Any product that requires electricity to perform its primary function and falls into one of ten categories of EEE will be covered by the regulations. And whilst many products will fit easily within this category structure, there are instances where it is not so clear cut.
Having clarified that you are obligated under the WEEE Regulations, what are the main issues you need to consider as a business? And how can you turn another raft of potentially expensive legislation into an opportunity for your company?
Setting up the systems: For many obligated companies, one of the first issues that needs to be addressed is the potentially difficult task of calculating and reporting the amount of EEE you place on the market. At first glance reporting sales by both units and weight should be reasonably straightforward, but these figures have to be reported separately for sales to consumers and sales to businesses. This will be no easy task. Calculating the weight and determining the EEE category of products can turn into a huge task for businesses with numerous product lines and outsourcing this function to experts that already have market information and established systems can often make economic sense.
Collection Systems: Whilst consumer products will in the main be returned though local authority collection sites, the practicalities of establishing and managing a collection system for business products lies with the producer.
Adding brand value: The WEEE Directive provides progressive companies with an opportunity to differentiate themselves from their competition. Handling the practical collection of products in an unprofessional way could have a negative impact on business image. Conversely, getting this activity right can pay huge dividends to a business’ reputation.
Choosing a partner: Like any supply chain, the complete solution where WEEE is concerned, is only as good as the weakest link in the chain. If you have appointed a WEEE partner on the basis of cost alone and not service levels and experience, you could live to regret that decision. The decision to appoint a WEEE partner is far from simple, it’s always important to remember you are handing over part of your brand equity – so choosing someone with a strong brand of their own to defend and a strong track record of customer service is a good first step in the selection process.
Minimising transport costs: There has been little mention in many articles so far of the cost of implementing WEEE from a logistics perspective. As much of 60% of WEEE costs, studies conducted so far indicate, will come from the physical movement of the goods. Businesses need to think about the selection of a WEEE partner that understands the often misunderstood skill of ‘reverse logistics’, which seeks to utilise supply chain efficiencies to transport returned products. In most instances, the ability to offer timely and cost-effective reverse logistics solutions is based on the density of the logistics provider’s network and it’s ability to gain the maximum efficiencies from its fleet. The bigger and more diverse the fleet, the higher will be the likelihood of reduced WEEE transport costs.
Getting value from waste products: There is a growing UK market for the recycling and re-use of electrical and electronic products. Being able to ‘plug into’ this emerging market can not only reduce your WEEE costs, but actually generate revenue in certain instances. Establishing links with a WEEE compliance scheme that has strong relationships right the way through the waste supply chain is another key decision that could transform the way your business deals wit its environmental obligation.
Clearly there is a lot more to the WEEE Directive than simply registering your business with an approved compliance scheme and hoping it all goes well on the night. There are significant issues relating to brand protection, cost and compliance that deserve careful consideration well before this July.
Businesses that have not started to forge relationships with WEEE partners need to put this issue to the top of their agendas now. Setting up reporting systems and developing take-back solutions that are both cost-effective and reliable are not shot-term projects.
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