significantly damaged. This could be very problematic for shipments of aerosols under HM-253. “Note that this does not mean that aerosols may be put into a bin or other packaging with other types of commodities,” she emphasized. “Perhaps a criticism of the final rule is that it is still not clear how to use the provision. Many questions still remain for retailers and manufacturers alike and as this provision is used more, there will likely be additional amendments,” McAuliffe concluded. “Unfortunately, HM-253 does not apply to returns that come directly from customers, added Mike Pagel. “Still, it’s the shipper’s responsibility to comply with hazmat transportation regulations and, in the customer return scenario, the customer is the shipper.” Should a customer have a return shipment rejected, who are they going to blame? A business, as a recipient of non-compliant hazmat shipments, is not necessarily liable for mistakes made by customers returning shipments. However, the company’s name and address are likely to be on the package. If a customer has a return shipment rejected, they are going to blame the business who shipped them the product. If an incident in transport should occur, ultimately the package is going to have the company name on it. If that business was not providing instructions or guidelines on how to return dangerous goods, it can have a significant negative impact on the company’s reputation. “Additionally, regulatory inspectors will care more about the commercial aspect of the non-compliant shipment and will likely follow up with either the carrier or the company involved based on the number of customer violations; the inspector may recommend guidance on shipping methods,” said Pagel. “Thus, it’s important that a business takes whatever steps possible to help customers ship packages in accordance with regulatory requirements.” Marketers & Retailers weigh in SPRAY asked marketer WD-40 Co. for its perspective on Reverse Logistics. “WD-40 Co. services both large retailers and small businesses with numerous products including aerosols, liquids, greases, powders and soap, most of which qualify for limited quantity designation,” explained Jeff Cole, Director of Operations, WD-40 Co. “In large part, returns from our customers are accomplished in the original packaging. However, it is inevitable that individual 16 that the company provide better Spray December 2016 aerosol selling units are sometimes returned for various reasons. We are therefore pleased with the addition of 49 CFR 173.157, as it has the potential to ease the return process for those customers who may not be hazmat-trained, while ensuring the safety of our valued warehouse and carrier partners and those who share the road with them. The effort required of WD-40 Co. to provide packaging and labeling guidance to support our customers under this new ruling is time well spent. We are more than happy to be able to provide the necessary guidance when customers request a return,” Cole enthused. Rick DiMaio, VP, Distribution, Office Depot, Inc. and Kim Baudry, Market Development Director of supply chain consultant Dematic, in their presentation Honey, I Shrunk the Store: A Shrinking Retail Footprint, observed that retailers are getting micro-sized as various forces contribute to smaller retail store footprints. Factors include urbanization (people working and living in cities) and M-commerce (electronic commerce conducted on cellular phones), which is outpacing both online and “brick and mortar” stores. Retailers have the same financial goals, yet less space, as many companies opt to close outlets when leases expire. As stores occupy less space, taking returns, especially with the added internet volume, can therefore be a challenge. Reverse Logistics means incorporating a frequent store pick-up program that will help ensure both timely processing of returns and potential vendor credits, but also keeps the store from becoming backlogged. Distribution Centers have a new role and need a solid Reverse Logistics plan, they said. EPA addresses Reverse Logistics under RCRA For years, retailers have struggled to comply with the Resource Conservation & Recovery Act (RCRA). RCRA laws were originally designed to regulate hazardous waste (as opposed to hazmat) that came mainly from industrial and manufacturing settings. However, due to the broad nature of the regulations, several non-household facilities generating hazardous waste, such as hospitals, schools and retail stores, are also subject to RCRA. On Sept. 12, the EPA released a “Strategy for Addressing the Retail Sector under RCRA’s Regulatory Framework.” The document outlines EPA’s plan to ensure that retail stores can feasibly comply with federal hazardous waste management laws under RCRA. The strategy, which includes addressing a number of waste-related issues for retail stores, such as disposal of aerosols and pharmaceuticals, also includes significant discussion on how the EPA will handle reverse distribution (RD) or reverse logistics (RL). Spurred by a number of compliance issues in the retail space, as well as Executive Order 13563, since 2014 the EPA has spent several years gathering information from retailers, manufacturers and logistics providers to understand exactly why and how RCRA compliance is challenging for retailers, according to technology company Optoro. The EPA has included a number of commitments as part of the strategy that relate to waste, but a key part of the plan is how EPA plans to address waste from reverse distribution (RD): • EPA recognizes that RD is an important aspect of retail sector operations and that Reverse Logistics Centers play a key role in final material disposition (i.e., resale, recycling, donation and disposal). • EPA created a “flow” of goods that maps out the various actors that participate in the RL process. This conceptual map signifies the research that EPA has done to get up to speed on how products flow throughout reverse distribution. The RD policy will be based on the various entities in this flow chart and their roles and responsibilities managing products. • The planned policy will apply to “unused/ intact consumer goods that have become unsaleable at retail stores for various reasons and are moving through the RD system.” • EPA has acknowledged that unsaleable retail items come from a number of sources including excess, expired, overstock, recalled and returned items. • EPA recognized that RCRA, in its current state, “may not always be the best fit in terms of the RL process…particularly as to when discard occurs and the timing of waste determination.” Clarity can then be expected around when a product actually becomes waste once the policy is released. • EPA acknowledged that reverse logistics centers may offer sustainability benefits such as an increased likelihood that consumer goods may be donated or liquidated, rather than disposed of. Viewing a product from “cradle to grave”—essentially being cognizant of the environmental impact created by products or activities from the beginning of its life cycle to its end or disposal—is the
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