implementation possibilities of reverse logistics...
TRANSCRIPT
XIIIth
International Izmir Textile and Apparel Symposium
April 2 – 5, 2014
489
IMPLEMENTATION POSSIBILITIES OF REVERSE LOGISTICS IN
TURKISH TEXTILE AND CLOTHING SECTOR
Seher Kanat, Turan Atılgan
Ege University, Department of Textile Engineering, İzmir, Turkey
ÖZET
Reverse logistics is the process of planning, implementing and controlling the efficient, cost effective flow of
raw materials, in-process inventory, finished goods and related information from the point of consumption to the
point of origin for the purpose of recapturing value or proper disposal. Reverse logistics implementations in
textile sector include the recycling and upcycling processes of unusable yarns, fabrics, production waste, husks
and clippings. On the other hand reverse logistics implementations in clothing sector include the recycling,
upcycling and reuse processes of used garments and clippings which are composed after cutting fabrics. In this
study, implementation possibilities of reverse logistics in Turkish textile and clothing sector are analyzed.
Key Words: Reverse logistics, Turkish textile and clothing sector, recycling, reuse, upcycling
1. REVERSE LOGISTICS CONCEPT
Reverse logistics is the process of planning, implementing and controlling the efficient, cost
effective flow of raw materials, in-process inventory, finished goods and related information
from the point of consumption to the point of origin for the purpose of recapturing value or
proper disposal [1]. Reverse logistics can also be defined as the process of collecting used
products and materials from first customers in order that they may be reused, recycled or up
cycled into other products. Reverse logistics treats these materials as valuable industrial
nutrients rather than trash [5].
Whenever the producers are not responsible for their end-of-use products and recovery value
is low, land filling will be the final destination of such products. This is an environmental
hazard. In cases where disassembly and reconditioning costs overcome the prices of new
material, the process of recycling and shredding is preferred to cleaner solutions, such as
complete or partial re-using. In the recent past, the growth of environmental concern has
given the term reuse a new meaning [5].
A typical reverse logistics process is as follows: once returns are accepted, the firm issues a
return merchandise authorization or return material authorization to begin all reverse logistics
activities. Returned products with less damage are processed to put back to finished goods
inventory with some test and repair, to be sold to customers. The rest with more damage is
returned to suppliers, sold to secondary markets, dismantled to harvest components or
landfilled [1].
Various classifications of reverse supply chain activities are offered by researchers. Most
reverse supply chains are designed to carry out five processes:
(1) Product acquisition: obtaining the used products from the user
(2) Reverse logistics: transporting the products to a facility for inspection and sorting
XIIIth
International Izmir Textile and Apparel Symposium
April 2 – 5, 2014
490
(3) Inspection and disposition: assessing the condition of the returns and deciding on the form
of reuse
(4) Remanufacturing or refurbishing: returning the product to its original form
(5) Marketing: creating secondary markets for the recovered products [2].
Any of the above five processes are candidates for being outsourced to a third party service
provider. Activities in reverse supply chain can be considered as operational or basic such as
warehousing and strategic or value added such as remanufacturing [2]. Figure 1 shows the
basic flow diagram of reverse logistics activities. The complexity of operations and value
recovered increase from bottom-left to top-right in the figure [3]. Table 1 shows a comparison
of how various features of logistics systems differ for forward and reverse [4].
Figure 1. Flow diagram of reverse logistics activities [3]
Table 1. Differences in forward and reverse logistics [4]
Forward logistics Reverse logistics
Forecasting relatively straightforward Forecasting more difficult
One to many transportation Many to one transportation
Product quality uniform Product quality not uniform
Product packaging uniform Product packaging often damaged
Destination/routing clear Destination/routing unclear
Standardized channel Exception driven
Disposition options clear Disposition not clear
Pricing relatively uniform Pricing dependent on many factors
Importance of speed recognized Speed often not considered a priority
Forward distribution costs closely monitored by
accounting systems
Reverse costs less directly visible
Inventory management consistent Inventory management not consistent
Product life cycle manageable Product life cycle issues more complex
Negotiation between parties straightforward Negotiation complicated by additional considerations
Marketing methods well-known Marketing complicated by several factors
Real time information readily available to track
product
Visibility of process less transparent
If the literature about reverse logistics is analyzed, it can be seen that the enterprises actualize
the reverse logistics implementations in accordance with two purposes. These purposes can be
classified in terms of economy and marketing. The enterprises obtain new products or raw
XIIIth
International Izmir Textile and Apparel Symposium
April 2 – 5, 2014
491
materials from old products or waste during economical reverse logistics implementations by
using recycling and upcycling options. Reverse logistics implementations in terms of
marketing include collecting products and reusing them with the purpose of increasing brand
awareness and brand image and strengthening corporate image with social responsibility
projects.
2. IMPLEMENTATION POSSIBILITIES OF REVERSE LOGISTICS IN TURKISH
TEXTILE AND CLOTHING SECTOR
Reverse logistics implementations in textile sector include the recycling and upcycling
processes of unusable yarns, fabrics, production waste, husks and clippings. On the other
hand reverse logistics implementations in clothing sector include the recycling, upcycling and
reuse processes of used garments and clippings which are composed after cutting fabrics.
Reverse logistics is implemented in textile and clothing sectors in both developed and
developing countries. Textile husks and wastes are sent to recycling and new raw materials
are obtained in developed countries such as USA and Europe countries. Whereas used
garments are collected by enterprises via stores. The collected garments are sent to recycling
and new raw materials are obtained or after they are cleaned and fixed, they are reused.
Textile husks and wastes are sent to recycling whereas garments are reused or upcyled in
developing countries such as India. For instance, men jeans are disintegrated by unseaming
and kid jean patterns are placed above these pieces. After that new pieces are cut and
ornamentations are done with embroidery. Finally, the pieces are seamed again and new girl
jeans are obtained.
Unfortunately, reverse logistics implementations in Turkish textile and clothing sector, which
has an approximate economic size of 50 billion dollar and which is the sixth biggest textile
exporter and fifth biggest clothing exporter in the world by 2012, are much lower than
expected. The evaluation of husks and clippings becomes widespread in textile sector.
However, the garments are gone to waste after usage or they are delivered to the
establishments which collect garments. The establishments (Kızılay, municipalities, social
institutions etc.), which collect garments, convey them to destitute people. Thus, the garments
are reused. However, if the garments are well-worn they are usually gone to waste. Turkish
clothing enterprises, which own brands, don’t collect used garments from their customers for
evaluation like their rivals throughout the world. Most of the clothing enterprises throughout
the world collect used garments from their customers and in return they give discount checks.
They have the garments dry-cleaned and deliver them to destitute people and send the
unusable ones to recycling.
Derimod is the unique Turkish clothing enterprise which organizes garment collection
campaign within the country. Derimod has collected thirty thousand leather jackets and coats
during this campaign. It gives twenty thousands of them to Kızılay after dry-cleaning and
repairing so they are sent to needy people. The customers, who have taken their used leather
jackets and coats to Derimod stores, have gained discount checks. Although the campaign is
carried out as social responsibility project, the leather jacket sales are increased by 50%
whereas turnover is increased by 20% [6]. This implementation of Derimod can be evaluated
as reverse logistics implementation which is marketing oriented. On the other hand, there are
recycling enterprises which operate in Turkish textile sector.
XIIIth
International Izmir Textile and Apparel Symposium
April 2 – 5, 2014
492
Önal Elyaf, which operates in Uşak and Çerkezköy factories, is one of the biggest recycled
fiber producers of Turkey. It buys all kind of textile waste from their sources, separates them
according to their fabric properties and colors and gets them through processes which are
necessary for fiber production. It produces 13.000 tons of recycled fibers from textile wastes
(cotton producer without a cotton field) per year. All of its products are 100% recycled. The
recycling ratio of textile wastes in Turkey is 67% by 2011 [7].
The inventory deficiency in Turkish textile and clothing sector stands in our way for getting
accurate information about reverse logistics implementations. However, the general profile of
recycling possibilities and textile and clothing wastes in Turkey can be obtained from a
project which is carried out in 2010.
According to the project report the annual economical value of textile husks, which are gone
to waste, in Turkey is over 100 million TL. 62% of the enterprises, which take place in the
research, sell their husks, 17% evaluates in its own production line and 16% dumps. Within
the context of project, capacities, product and production types of the waste treatment
enterprises in Turkish textile and clothing sector are determined. 82% of 60 enterprises are
situated in Uşak province which becomes the recycling center. 18.050 tons husks are
reevaluated per month. The enterprises recycle fibers, yarns, fabrics and fabric clippings. The
enterprises use the husks for reproducing yarns, acquiring laps, acquiring nonwovens-felts,
obtaining granules. The recycled fibers are cotton, polyester, acrylic, wool, viscose, nylon,
polypropylene and linen. The husks are obtained from domestic and international (Romania,
Bangladesh, Pakistan, India etc.) markets. The products, which are obtained from husks, are
used in the production of felts, blankets, knitwear, woven fabrics, yarns, socks, rugs, quilts,
carpets and furniture [8].
3. RESULTS AND GENERAL EVALUATION
Turkish textile and clothing sector can’t adequately benefit from reverse logistics
implementations. Most of the textile husks (fiber, yarn and fabric husks) are sent to recycling
and they are gained back to economy. However, most of the used garments aren’t recycled or
upcyled. Some of the used garments are sent to needy people via social institutions whereas
most of them go to waste.
The fewness of reverse logistics implementations in Turkish textile and clothing sector
depends on reasons such as; high recycling expenditures, low profit margins of obtained
products, unwillingness of consumers towards wearing garments which are produced with
recycled materials, improperness of using recycled fibers, yarns and fabrics in high value
added products. However, it can be seen from foreign implementations that, high value added
products can be obtained from recycled textile raw materials. On the other hand, within the
scope of social responsibility projects, collected garments are sent to needy people. Thus, the
enterprises can benefit from reverse logistics implementations in terms of economy and
marketing.
In order to achieve an increase at reverse logistics implementations in textile and clothing
sector, both the enterprises and consumers must become conscious. Reverse logistics
increases the recycling and provides the reuse of worn products or upcyling. The requirement
XIIIth
International Izmir Textile and Apparel Symposium
April 2 – 5, 2014
493
for environment protection and sustainability increases day by day. At this point, the raw
materials must be reused and minimum waste must left to environment. Therefore, the
upcyling and recycling of textile and clothing products are vital. Thus, the sustainability ratio
will increase and an economic contribution will be made.
4. REFERENCES
1. Olorunniwo F.O. and Li X., 2010, Information sharing and collaboration practices in
reverse logistics, Supply Chain Management: An International Journal, V:15, No:6, p:454-
462
2. Ordoobadi S.M., 2009, Outsourcing reverse logistics and remanufacturing functions: a
conceptual strategic model, Management Research News, V:32 No:9, p:831-845
3. Srivastava S.K. and Srivastava R.K., 2006, Managing product returns for reverse logistics,
International Journal of Physical Distribution & Logistics Management, V:36, No:7, p:524-
546
4. Tibben-Lembke R.S. and Rogers D.S., 2002, Differences between forward and reverse
logistics in a retail environment, Supply Chain Management: An International Journal, V:7,
N:5, p:271-282
5. Abraham N., 2011, The apparel aftermarket in India- a case study focusing on reverse
logistics, Journal of Fashion Marketing and Management, V:15, N:2, p:211-227
6. http://www.hurriyet.com.tr/ekonomi/13522162.asp , (Date of Access: September 2013)
7. http://www.onalelyaf.com.tr , (Date of Access: September 2013)
8. Altun Ş., 2010, Türkiye’deki Tekstil ve Hazır Giyim Atıklarının ve Geri Kazanım
İmkanlarının Genel Profilinin Çıkarılması, 109Y008 Numaralı Tübitak Projesi Sonuç Raporu