Retailers should act now to avoid unnecessary WEEE costs

The “act now” message ahead of the Waste Electrical and Electronic Equipment Directive came in a report from the Chartered Institute of Logistics and Transport. The Institute said that UK retailer's inefficient returns systems are costing them millions of pounds more than they should.

The government funded report noted that from next August costs are likely to escalate because new systems of take back, introduced because of the WEEE Directive, will add to the problem of extra costs because of inefficient returns systems.

The logistics of returns systems will be important for WEEE retailers and already some retailers are setting up take back schemes so that when a consumer purchases electrical goods from stores they can hand over their waste items free of charge.

Financial benefit

The report stated that retailers could benefit financially if they were able to manage their returns more efficiently with estimated savings of between 20% and 40%, or 100 million and 200 million a year.

Commenting on the report, junior transport minister David Jamieson said: “We all know that faulty goods are returned, but few realise just how much is needlessly travelling up and down the country or around the world.”

The report was compiled by Sheffield Hallam University and Cranfield School of Management, and said that emerging EU legislation will force producers and retailers to take back products they sell post consumer use. “This form of legislation is likely to have a dramatic impact on organisations planning their returns management strategy,” it said.

“It is evident that potentially the cost of dealing with product take back could be significant and will heighten the need for effective and comprehensive returns management programmes,” the report added

According to the report much of the problem stems from new retail markets including internet and home shopping sales. Companies are keen to take back goods with little or no hesitation to avoid losing customers, the researchers said.

• Copies of the report are available from Citigate Communications.