Logistics ngược và phát triển bền vững ở Việt Nam

Nội dung text: Logistics ngược và phát triển bền vững ở Việt Nam

1. REVERSE LOGISTICS AND SUSTAINABLE DEVELOPMENT IN VIETNAM LOGISTICS NGƯỢC VÀ PHÁT TRIỂN BỀN VỮNG Ở VIỆT NAM ThS. Trần Thị Thu Hương Trường Đại học Thương mại Abtracts Under the pressure of fierce competition and serious environmental pollution today, reverse logistics is one of the important solutions that help businesses reduce costs, increase sales revenue, improve customer service and reduce the impact of business activities on the environment; thereby gaining competitive advantages in the market and implementing coporate social responsibility. In the scope of the nation, developing reverse logistics system is also regarded as a key in attaining the sustainable development objectives. This article provides the concepts of reverse logistics in connection with environmental aspect and sustainable development. Based on qualitative data collection method, this article also evaluates the current situation of the implementation of reverse logistics in the scope of nation as well as that of the firms in Vietnam. Finally, some policy recommendations to improve reverse logistics in Vietnam are discussed at the end of this article. Key words: reverse logistics, sustainable development, Vietnam Tóm tắt Dưới áp lực của cạnh tranh khốc liệt và ô nhiễm môi trường nghiêm trọng hiện nay, logistics ngược là một trong những giải pháp quan trọng giúp doanh nghiệp giảm thiểu chi phí, tăng doanh thu bán hàng, cải thiện dịch vụ khách hàng và giảm tác động của hoạt động kinh doanh đối với môi trường, qua đó đạt được lợi thế cạnh tranh trên thị trường và thực hiện trách nhiệm xã hội. Trong phạm vi quốc gia, phát triển hệ thống logistics ngược cũng được coi là chìa khóa để đạt được các mục tiêu phát triển bền vững. Bài viết này cung cấp các khái niệm về logistics ngược liên quan đến khía cạnh môi trường và phát triển bền vững. Dựa trên phương pháp thu thập số liệu, bài báo này cũng đánh giá tình hình hiện tại của việc triển khai logistics ngược trong phạm vi quốc gia cũng như trong các doanh nghiệp ở Việt Nam. Cuối cùng, một số khuyến nghị về chính sách để cải thiện logistics ngược tại Việt Nam được thảo luận ở phần cuối của bài báo này Từ khóa: logistics ngược, phát triển bền vững, Việt Nam 1. Introduction Vietnam has been in the process of the industrialization and modernization. Along with the development of economy in general and manufacturing sectors in particular, the increase in population, the improvement of living standard, and the trend of urbanization, a large amount of waste has been released into the environment, especially solid waste such as household waste, industrial waste, medical waste, agricultural waste, and hazardous waste, etc. According to the statistics, the volume of household solid waste in Vietnam is 796
2. generated at 28 million tons, the amount of non-hazardous industrial solid waste is 7 million tons and hazardous industrial solid waste is about 800 thousand tons per year. However, due to the low rate of collecting and treatment for solid waste, the environment pollution in Vietnam becomes a serious issue causing negative impacts on the sustainable development in Vietnam. The pressure of maintaining economic development with environmental issue and sustainable development has forced the government as well as the businesses in Vietnam to set out specific and synchronous strategies to collect and dispose waste for all emissions sources. Decree No.1216/QĐ-TTg appoving "Strategy for National Environmental Protection until 2020 and orientation to 2030" was enacted on September 5, 2012. Environmental Protection Law 2014 passed by the National Assembly XIII in 7th Session in June 23, 2014 has come into effect from January 1, 2015. In addition, Decree No.38/2015/ND-CP on the Management of Waste and Scrap and Guiding Circulars were promulgated on April 24, 2015. Especially, in the context of facing the global environment pollutions such global warming, climate change, and greenhouse effect, Vietnam signed several international commitments on sustainable development such as The United Nations Framework Convention on Climate change and Kyoto Protocol; Vienna Convention for the Protection of the Ozone layer; Montreal Protocol on Substances that Deplete the Ozone layer; Basel Convention on the Control of Transboundary Movement of Hazardous Waste and Their Disposal; The Stockholm Convention on Persistent Organic Pollutants All of the above show that sustainable development has become the guidelines and policies of Vietnam government. The OECD (2003) acknowledged that “Reverse logistics need to be developed. The imminent need in many countries to reduce, reuse and recycle waste will only become feasible with a transport system which carries used and returned goods for reuse and recycling (reverse logistics) in a cost-effective manner.” The result is an increase in reverse logistics activities on a whole range of industries in many countries over the world. Although the recycling industries have been developing for a long time and it is currently playing an important role in the economy of many countries, reverse logistics is a relatively new area for both academic researchers and business practitioners in the developing countries in general and in Vietnam in particular. Reverse logistics is just at the beginning stage compared to most industry sectors in Vietnam. However, nowadays, reverse logistics is reveived the increasingly interest of government and enterprises because of some factors such as the increasing consumption of products leading to the growing amount of discarded products and waste, the changing business to customer and sustainable development orientation, and the increasing enforcement of law. The research forcuses on three main objectives as details: - Provide the concept of reverse logistics in connection with environmental aspect and sustainable development. - Evaluate the current situation of the implementation of reverse logistics at the nation level as well as firm level in Vietnam. 797
3. - Offer some recommendations to improve reverse logistics in Vietnam. 2. Theory foundations Though the idea of reverse logistics dates from long time ago, a formal definition of Reverse Logistics was given by Council of Logistics Management in the early nineties of the 20th century. This definition stresses the recovery aspects of reverse logistics (Stock, 1992): “Reverse logistics is the term often used to refer to the role of logistics in recycling, waste disposal, and management of hazardous materials; a broader perspective includes all issues relating to logistics activities to be carried out in source reduction, recycling, substitution, reuse of materials and disposal.” Carter and Ellram (1998) linked the concept of reverse logistics to environmental purpose of, as follows: “Reverse logistics is the process whereby companies can become environmentally efficient through recycling, reusing, and reducing the amount of materials used” According to the Reverse logistics Executive Council, “Reverse logistics is the process of moving goods from their typical final destination to another point, for the purpose if capturing value otherwise unavailable, or for the proper disposal of the products” The concepts presented above show that reverse logistics related activities play three fold roles for sustainable development including environmental, economic and social aspects. Firstly, firms are able to reduce their material and energy resource consumptions, improve resource productivity, and thereby reducing operating costs. In addition, firms are able to increase their revenue from returned, reconditioned or recycled products and materials that were previously discarded (Stock et al., 2002). Therefore, reverse logistics should be seen as a potential source of competitive advantages and not just as a system that only generates additional costs (Daugherty et al., 2005; Stock, 2001). Secondly, in relation to environment matters, reverse logistics has been regarded as an effective way to minimize the consumption of natural resources, decrease waste from business activities, and thus reduce the negative impact on environment. In other words, reverse logistics improve both business performance and environmental performance enabling firms to achieve competitive advantages (Stock et al., 2002). Finally, reverse logistics can also be considered a tool for companies to implement their social responsibilities. Some companies use their reverse logistics potentials for altruistic purposes such as philanthropy, charities or giving discounts to their customers for buying new products instead of returning the old products (Rogers and Tibblen-Lembke, 1998). Furthermore, the informal reverse logistics system has created many job opportunities and increased incomes for the low-skill labour force in many developing and underdeveloped countries through collecting valuable used products discarded from households and businesses. 798
4. There are some different models describing the reverse logistics process. In this research, the model as figure 1 from Roberta Pinna and Pier Paolo Carrus (2006) is used. The figure 1 indicates four main stages in reverse logistics process: Redistributio Examination and n Re-processing • Reclaiming processing returned product, Direct recovery surplus or by- • Inspection Storage, sales - Re-use product and and transportation • Selection transporting - Re-sale • Sorting - Re-distribution Collection Recovery Figure 3: Reverse logistics process (Source: Roberta Pinna and Pier Paolo Carrus, 2010) The first stage in the process is collection. Collection includes all activities that are necessary for reclaiming returned products, surplus or by-products and transporting them to a point of recovery where they will be carried on further examination and processing. At the stage of inspection/selection and sorting, quality of returned products is assessed carefully to classify them into different groups. Then, they will be put into the recovery stage. The firm has many recovery options to choose. If the quality is “as-good-as-new”, products can be brought into the market through direct recovery including three ways, namely re-use, re-sale and re-distribution. Re-use refers to cases in which returned products with good quality can be re-used almost immediately in the same or an alternative market. This can be adapted to re-usable bottles, pallets, containers and most leased or rented equipment. Re-use is a step [TB1] in which the product is used again without purchasing, spare parts as an example. Re-sale is applied to situations where the product is sold again. Finally, re-distribution refers to products like carriers that are simply distributed again and again. The second option is the re-processing that includes the following recovery options: - Repair (at product level), - Refurbishing (at module level), - Remanufacturing (at component level), - Retrieval (at part level), 799
5. - Recycling (material level), and - Incineration (energy level). The goal of repair is to restore faulty products to “working order” status despite products’ less quality. At module level, the products like a large installation, building or other objects get upgraded (refurbishment). In case of component recovery, products are dismantled and used and new parts can be used either in the manufacturing of the same products or of different products (remanufacturing). In material recovery, products are grinded and their materials are sorted out and grouped according to a quality wish, so recycled materials can be input raw material, such as paper pulp and glass. Finally, in energy recovery, products are burned and the released energy is captured (incineration). If none of these recovery processes occur, products are likely to go to landfill. The last stage is re-distribution referring to logistics activities required to introduce a product into market and tranfer it to customers (for example: storage, sales and transportation) 3. METHODOLOGY Qualitative data collection is the main method to collect both primary and secondary data to conduct the given objectives of the article. All of the information about current situation of reverse logistics at national level is gathered through the secondary data research. However, reverse logistics has just been at the beginning stage in most industry sectors in Vietnam. Nowadays, there are no documents or macro statistics directly mentioned on reverse logistics. Therefore, the author considers the data mainly related to solid waste management as the initial inlustration to demonstrate reverse logistics in Vietnam. To collect the primary data reflecting the real situation of reverse logistics activities at firm level, the author used expert interview method. Interviewees are the head of department related to reverse logistics of Hanoi Plastics Joint Stock Company and Hanoi Beer Alcohol and Beverage Joint Stock Corporation. These are two companies that have high demand for [TB2] reverse logistics to collect and recycle materials or reusable bottles. 4. CURRENT SITITUATION OF REVERSE LOGISTICS IN VIETNAM 4.1 Curent situation of reverse logistics system at national level In Vietnam, reverse logistics is mainly known as the solid waste collecting and treatment system organized and operated in formal and informal model. In which, the formal reverse logistics system does not only include the state-managed waste collection and treatment system through Urban Environment Company (URENCO) but also the participation of joint ventures and private companies based on the contracts of waste collection and treatment. In contrast, the informal reverse logistics system is a spontaneous, small and fragmented waste collection and treatment system without legal contracts. While the formal collection system has not met requirements of household and 800
6. business for collecting ans recycling discarded products and waste, the informal system has been regarded as a temporary but an effective solution in Vietnam. 4.1.1 Formal reverse logistics system The formal reverse logistics system includes collection system, transfer station, transportation system, and final disposal systems operated by public urban environmental service providers. In the 2000s, Vietnam had only 95 organizations (only two of which were privately-owned companies; the rest were state-owned companies) working in the waste management industry and together serving 82 cities or towns. However, there are now nearly 2000 enterprises operating in environment and waste management field including state-owned companies, privately-owned enterprises, and join-venture firms. URENCO is a leading company with more than 50 years of experience. There is at least one representative of URENCO in each city in Vietnam who is responsible for waste handling. URENCO implements different activities of collection, transport, treatment and disposal of all types of hazardous and non-hazardous waste from many sources at urban central areas and apart of sub-urban areas such as residential areas, streets, comcercial areas, offices, markets, industrial parks, hospital, etc (MONRE, 2005, p.21). Figure 2 shows details of the formal reverse logistics system in Vietnam. SOURCES COLLECTION TRANSFER TRANSPORTATION DISPOSAL 0251898880251904000251900928251902976251901952251906048251905024SYSTEM STATION SYSTEM SYSTEM Household, URENCO, URENCO URENCO, Composting Resident areas Private firms Private firms • Dust carts • Transfer • Mini trucks • Mini trucks stations • Forklift trucks • Meeting points • Compression trucks • Open dumping • Sanitary landfill Retail market Landfill URENCO, URENCO, Private firms Private firms • Mini trucks • Mini trucks • Compression trucks • Compression trucks Street/ Public Facilities Environment Environment treatment treatment companies companies Industry, offices, Institutions • Specialized • Specialized trucks trucks Health care URENCO URENCO Incineration organizations • Specialized containers • Specialized trucks • Specialized trucks Figure 2: The formal reverse logistics system in Vietnam (Source: Viet L. H et al, 2011) 801
7. - Generation of waste: The solid waste generation (hazardous and non-hazardous solid waste) comes from various sources including households and resident areas, retail market, street or public facilities, industrial zones and healthcare organizations; in which municipal waste has the highest proportion. Table 1 provides some statistics of status quo of the municipal solid waste generation in Vietnam in 2010, 2015 and forecasts to 2020, 2025. Table 1: the municipal solid waste generation in Vietnam Contents 2010 2015 2020 2025 Urban population (millions) 26 35 44 52 The proportion of the urban population (%) 30 38 45 50 Index of municipal solid waste (kg/person/day) 1,0 1,2 1,4 1,6 Amount of municipal solid waste generation 26.224 42.000 61.600 83.200 (tons/day) (Source: Ministry of Natural Resources and Environment) - Collection and transportation: There are many differences between the collection and transportation system of household solid waste and industrial or medical solid waste. Household solid waste is collected and transported by URENCO. Households can place their discarded products and waste in the open waste bins on the street or in front of their dwelling for URENCO employees to pick up. Dustcarts that the URENCO collectors push on foot door-to-door transport the household waste to designated transfer stations or meeting points. Then, the household solid waste is transferred to the mini trucks or compression trucks to transport to intermediate treatment facilities and final disposal site. URENCO also cooperates with private firms in areas that they can not reach to implement their responsibilities of waste handling. This outsourcing is still limited to collection and transportation activities. These private firms collect wastes and transport them to landfills. According to the statistics, while the volume of household solid waste in Vietnam was generated at 28 million tons with 10% growth per year, collecting rate averaged about 83 - 85% in the urban centers, 60% in the suburban and only 40 - 50% in rural areas. The recycling rate was only about 10 - 12%; the rest were not processed and reused. Conversely, most manufactories in the industrial zones signed contracts with the firms operating in the waste collection and transportation fields. Industrial waste including hazardous and non-hazardous waste are usually collected and transported directly by specialized trucks or containers from factories and hospitals to treatment and disposal system. Collection rate of industrial solid waste was quite high, over 90% of the total industrial solid waste. - Sorting and testing: The activities of sorting and testing for reuse and recovering have not been performed officially because of a very small volume of valuable discarded products. Furthermore, the local URENCO workers usually select the good ones to sell to informal 802
8. collectors before moving waste to the transfer point. URENCO have not invested in designing and building the network where consumers can bring their discarded products for final disposal with the support of URENCO workers. URENCO in some big cities such as Hanoi, Ho Chi Minh City, and Da Nang have built the network of two separated waste bins: one for organic waste and another for inorganic waste including package waste, paper waste, used batteries, small electric equipments and so on. However, the number of these bins is not enough to meet requirements of waste collection. In addition, the lack of public awareness is also a barrier to waste separation from origin. In other cities/provinces, URENCO has not separated products discarded specifically and still mix with other solid waste. - Waste treatment: In general, household solid waste is processed by landfill, incineration and production of organic fertilizer in which the rate of landfill or incineration is very high with 75-80%. For the industrial and medical waste, they are classified at source under treatment method into reuse, recycle or discharge. Reusable and recycled waste is sold to recycling firms; non-recycled parts are collected, transported and treated by signing contract with URENCO or environment treatment companies for incineration or landfill. Nowaday, Vietnam has 458 solid waste landfills over 1 hectare and thousands of small-scale ones. However, there are only 121 hygienic landfills, other 337 unhygienic landfills are mostly transitory, open-pit, without dripping collecting and treatment system. Besides, Vietnam has about 50 solid waste incinerators. Most of them are small with treatment capacity below 500 kilograms per hour. Two-third of incinerators are manufactured and assembled in Vietnam. Technology for producing organic fertilizer from household waste is mainly aerobic composting. To June 2015, 83 hazardous waste treatment firms (in which 56 firms are operating in at least two provinces) were granted license by the Ministry of Natural Resources and Environment and 130 firms (mainly operating in hazardous waste transportation) were granted license by the local authorities. Ninety-seven percent of firms granted license by the Ministry of Natural Resources and Environment are privately - owned enterprises. With total capacity of 1,300 thousand tons per year, the firms granted license by the Ministry of Natural Resources and Environment play a main role in hazardous waste collecting, transportation and treatment. However, these firms have only collected, transported and processed 40% of hazardous waste generation in Vietnam. The hazardous waste treatment firms use various technologies including incineration (22% of total firms), landfill (3%), solidification (18%), oil waste recycling (13%), battery recycling (10%) Informal reverse logistics system In fact, discarded products such as metal or plastic waste, carton or nylon package waste, scrap paper in Vietnam are often collected by informal collecting system because of the economic benefits gained from these products. Therefore, informal reverse logistics in Vietnam is the informal waste collecting system operated by waste pickers, junk buyers, repair/secondhand shops, private collecting agents or dealers, craft villages, and private recycling companies. The existence of the informal waste collecting and recovery system 803
9. in Vietnam is due to demands for secondhand products, recovered materials, and the income needs of the low-skilled labor force. Details on the informal reverse logistics system in Vietnam are inlustrated in figure 3. 0252041216252042240252045312252043264252044288252048384252047360252049408 SOURCES INFORMAL BUYERS TRADERS USERS COLLECTORS Landfill Dumpsite Buyer at landfill scavengers Transfer points Handcarts Craft villages, Buyer at home recyclers, Waste pickers industries Street Waste bins/containers Dealers/Agents Households Offices, Export Institutions Sidewalk deport Distributors Junk buyers operators Hotels Repair/secondhand shops Reusers Restaurants Figure 3: The informal reverse logistics system in Vietnam (Source: Ha N. T. V, 2012) - Collection system: The system of informal collectors is a three-tiered network of waste collectors (including city-based waste pickers, dumpsite pickers, and junk buyers), intermediaries (including receivers, dumpsite depot operators, and sidewalk depot operators), and dealers. Waste pickers scavenge in waste bins/carts and on the street or transfer sites in the city. In other words, they do not purchase waste; or rather their income is obtained from the sale of objects they found. Conversely, junk buyers, repair/secondhand shops and private collecting agents/dealers are the informal collectors who buy valuable discarded products from households, restaurants, small hotels/guest houses, office building and private or government-owned institutions. The informal collectors are separated into three main groups including small collectors, medium and large sized collectors. Households in Vietnam often sell their discarded products with suitable prices to small collectors (junk buyers) when they want to dispose the products. The small collectors, in turn, resell their collection to the medium and big collectors (repair/secondhand shops, cooperatives or collecting agents, and dealers) for repair, refurbishment, and recycling. The collection of discarded products from offices and institutions are always practiced by medium and large 804
10. collectors. Two main differences between collectors for households and offices/institutions are legal status and budget. Most collectors for households have not registered for their operations and have been not under any control. However, collectors for offices are often small and medium sized private cooperatives and companies. After choosing the best collectors, the offices and firms always establish contracts of collection and treatment for their discarded products. - Treatment system: In Vietnam, recycling industry is almost established informally in forms of craft villages, small family business and private facilities. Until now, Vietnam has had about 4.600 craft villages creating 11 million jobs for labour force (in which approximately 30% employments are in rural areas). Among them, 81 waste recycling villages related to metal scrap and aluminium waste are allocated mainly in some main cities and provinces in Northern of Vietnam such as Hanoi (Trieu Khuc, Thanh Tri), Vinh Phuc (Yen Lac), Nam Dinh (Van Chuong, Yen Xa), Hung Yen (Dong Mai), and Bac Ninh (Chau Khe, Nam Truc). Besides, Ho Chi Minh City has more than 300 facilities that recycle different scrap materials including metal, aluminium, copper, paper, plastic, and rubber. However, most of them are small-scale and use backward technology. These facilities only focus on two types of incineration or grinding waste materials, and adding chemicals waste to produce new product. Informal reverse logistics activities contribute to some positive effects on waste collecting and treatment in Vietnam. For example, these activities allow direct collection from end-users, the industries, and the landfills, conservation of resources, and the recovery of secondary materials. The integration of informal sector into a formal collecting system in new model of reverse logistics might be the opportunity for developing a formal reverse logistics system in Vietnam. However, the informal collecting system causes some issues related to environmental pollution, public health and the vulnerable groups including waste pickers, poor women and children. 4.2 Reverse logistics system at firm level 4.2.1 General situation According to the Ministry of Industry and Trade, many enterprises had to organize recalling campaigns in Vietnam in the period 2011-2015; in which there are 9 cases in 2012, 18 cases in 2013, 17 cases in 2014 and 10 cases in 2015. Most of recalling campaigns is due to defect products after selling to consumers. Typically, in May 2013 Yamaha Vietnam started a campaign to recall more than 80,000 vehicles “Nozza”, caused by the deformation of the rack of petrol pipe. Yamaha Vietnam recalled and replaced freely over 80% of vehicles; over 10% of vehicles were been recalled due to losing contact with the customers. At the beginning of 2014, Toyota Vietnam implemented a recall campaign of more than 43,000 Innova, Fortunar and Hilux cars because of defect airbags. At the same year, April 2014, Lenovo Pte Co., (Singapore) through a representative in Vietnam started a campaign to recall and replace thousands of batteries in Vietnam market. In July 2015, Honda Vietnam Company conducted a campaign to recall over 12,000 SH vehicles due to errors related to anti-theft feature of the smart key. 805
11. Above figures show that reverse logistics in Vietnam is only performed actively and professionally in the foreign enterprises. While, most domestic enterprises do not have a deep awareness of the role of reverse logistics in creating competitive advantage and sustainable development. At the same time, the restriction of management skills, weakness of infrastructure and technology has led Vietnamese enterprises to organize, implement and control reverse logistics uneffectively. However, some enterprises in Vietnam having high requirements of reverse logistics activities to return reusable materials or packages such as plastics, glass and metal, have paid more attention to reverse logistics. Therefore, these companies have gained both economic and environment efficiency by recycling, reusing and remanufacturing all materials as well as products. The following parts focus on studying reverse logistics activities in some typical firms. 4.2.2 Reverse logistics in some typical firms a. Hanoi Plastics Joint Stock Company Hanoi Plastic Joint Stock Company (HPC) is an industrial plastics producers and a professinal plastics molder. HPC supplies high quality products for many famous foreign firms such as Honda, Ford, Piaggio, American Standard, Tostem, Shoden, Sanko, Hashimoto as well as local companies such as Selta, Thang Long metal wares, Xuan Hoa, Viglacera In HPC, reverse logistics process is implemented to collect defective products from customers and production line (HPC calls them “unsuitable products”). Figure 3 provides a detail of the reverse logistics process being done in HPC. The unsuitable products can be detected by customers or quality control workers. After being identified, unsuitable products are collected and divided into two categories depending on the defective conditions: - Normal unsuitable products include the defective products are caused by objective reasons (such as obsolescence or shipping errors ), easily remediable reasons (such as burrs, slight scratches, wrong label, incorrect assembly ). - Serious unsuitable products include the products that do not meet quality standards due to underlying reasons making HPC has solutions to take precautions against such as non-standard size, warped/flawed products, plastics vacant space Depending on the condition of defective products, the quality control workers transport them to many different departments to repair, remanufacture in the following ways: - Normal unsuitable products are reassembled, cut the burrs/stalks of products, burnished slight scratches, labled with correct location. Serious unsuitable products are chopped and minced into two kinds of scraps including clean scraps (not mingled with waste and other raw materials) and dirty scraps (mingled with waste, other raw materials). HPC often sell dirty scraps for scrap treatment companies or plastic package producers. Conversely, clean scraps are blended with primary plastics beads to remanufacture suitable products. The proportion of blending 806
12. between clean scraps with new materials usually ranges from 5% to 20% based on the quality requirements of each type of products as well as customer requirements. For example, HPC often blends 5% clean scraps and 95% new materials in producing of the computer cases; 20% clean scrap and 80% new materials in producing of plastics parts used in construction industry. However, Honda and Toyota do not allow HPC to blend scraps with new materials in order to ensure high technical standards. 0252041216252042240 - Customers - Production line Identify Classify Serious unsuitable Normal unsuitable products products Chop into pieces Repair Clean scraps Dirty scraps Remanufacture sell Suitable products Figure 4: Reverse logistics process of unsuitable products in HPC (Soure: HPC’s ISO documents and Own illustration based on result of the interview) According to head of Manufacturing and Planning Department, thanks to the collecting and recycling of unsuitable products, HPC has saved 10% cost of materials per year, reduce negative impact of business activities on the environment and contribute to building the image of a "green company" in the mind of customers. b. Hanoi Beer alcohol and beverage joint stock Corporation (HABECO) HABECO is nowadays one of two biggest beer procducers in Vietnam. In HABECO, the collection and reuse of glass bottles affect directly not only the cost of packages but also continuity of production line. This requires HABECO to implement reverse logistics to improve business performance and reduce the impact of business activities on the environment. Reverse logistics flow in HABECO is deployed with forward logistics flow in the opposite direction (see Figure 4): 807
13. Consumer0 Retailer Wholer Tier 1 Warehouse HABECO s s salers Agents Branches Figure 5: Reverse logistics process of glass bottles in HABECO (Soure: Own illustration based on result of the interview) - Collection and transportation: Bottle collection process is practiced in several steps with the participation of all members of the distribution channel. Firstly, customers will return the glass bottles and plastic boxes to the retailer and get back their deposit. In case of the lost or broken bottles, retailers will deduct from the amount of customer’s deposit. After collecting bottles from customers, retailers will periodically transfer these bottles in plastic boxes to their wholesaler when they receive new ones. Wholesalers, in turn, will transfer the bottles to agents signing the exclusive distribution contracts for HABECO. Currently, HABECO has got about 470 agents allocated mainly in the North of Vietnam. Then, the bottles will be received at 4 warehouses placed in Thach That and Me Linh districts of Hanoi Capital, Thanh Hoa and Quang Binh provinces and 8 branches placed in Phu Tho, Hai Duong, Hai Phong, Thai Binh, Quang Ninh, Thanh Hoa, Quang Binh, and Quang Tri provinces. Finally, these bottles and boxes will be transfered to HABECO’s factories where the bottles will be re-used again. - Treatment: The figure 4 indicates the treatment process of the collected bottles in HABECO’s factory. In the first step, the bottles are examined carefully by the worker to reject the defect bottles which are cracked, chipped or sharply scratched. Then, they are put into the pressure gauge system to find the rift that manual methods did not detect. The bottles do not meet quality requirements will be automatically removed from the lines. In the next step, the bottles will be rinsed by using NaOH to clean the dirt and peel the old label from the bottles. After that, they are sterilized serveral times with high pressure hot water stream. Finally, they are put into drying fan system and reused in the next manufacture lines. 0 Manual Automatic Rinsing and Drying Put bottles into Selection bottles Sterilization manufacture quality lines Examination Figure 5: Treatment process of returned glass bottles in HABECO (Soure: Own illustration based on result of the interview) 808
14. According to the statistics of HABECO, the glass bottles can be reused an average of 7 times. This has helped HABECO to save much cost of packages, ensure the supply of packages for manufacturing process, and reduce the impact of business activities on the environment. In summary, despite having improved significantly in collecting and treatment of discarded product and waste, reverse logistics system in Vietnam at national and firm level is facing [TB3]many problems such as: - The lack of awareness the Vietnam’s government and companies on reverse logistics has become one of the main problems, which limits the development of reverse logistics; - The legislative and regulation that governs the reverse logistics system are still undeveloped. The implementation of these policies và regutations is inadequate. - Infrastructure and waste treatment technology are backward, low capacity; - Collaboration between actors in reverse logistics system is weak; - The formal collection system has not met requirements of household and business for collecting and recycling. The informal collecting system causes some issues related to environmental pollution, public health; - Vietnam’s enterprises has not performed reverse logistics actively and professionally due to restriction of management skills, weakness of resources. However, the benefits that reverse logistics brings to the business in the above case studies are clear evidence of the need to develop reverse logistics in Vietnamese enterprises. 5. Policy recommendations In 17 December 2009, Deputy Prime Minister Hoang Trung Hai signed the Decision No.2149/QD-TTg on “Approving the Nation strategy for Integrated management of solid waste up to 2025, with a vision to 2050”. Accordingly to this strategy, the objectives to 2050 are that all types of solid waste will be collected, reused, recycled and thoroughly treated with the environmentally friendly and advanced technology, and minimize the solid waste landfill. To achieve above strategic goals as well as develop reverse logistics in Vietnam, and ensure sustainable economic development, some policy recommendation are suggested as following: - It is necessary to propose some solutions, which can combine the efforts, the strengths, and the potential of all stakeholders in a reverse logistics system; especially from the governments, firms, and the customers; - Strengthening the collaboration among supply chain partners in reverse logistics networks - Promoting sufficient framework of legislation and specific regulations, conducting supportive policies, 809
15. - Improving public awareness such as end-consumer, manufacturers, distributors, as well as informal collectors and recyclers - Increasing investment in infrastructures, facilities and technologies of reverse logistics operations, - Strengthen to manage the informal waste collection and treatment system to promote its support role for the formal waste collection and treatment system and to limit the negative impacts of this system. Besides, Vietnam enterprises should also take the following notes into consideration: - Firms in Vietnam should firstly be aware of reverse logistics in their business operations. - Secondly, it is important to identify the main motivations for them to implement reverse logistics management, the strategic roles and status of reverse logistics in their business. If reverse logistics is important and have strategic roles in increasing competitive advantages and profit, it is essential to evaluate the drivers, the barriers and internal supports to manage reverse logistics. Determining major drivers and supports help firms make strategic decisions of developing a formal reverse logistics program. - Developing a formal reverse logistics program may support firms in identifying the roles of logistics in their firms. - Allocating resources for reverse logistics implementation. And making decision of in-house operation, outsourcing or integrated solutions. TÀI LIỆU THAM KHẢO: 1. Aberdeen Group (2007), Industry best practices in reverse logistics. Benchmarking the success strategies of top industry performers, Aberdeen Group. 2. Carter, C. R, and Ellram, L. M (1998), "Reverse Logistics and: Review of the literature and frame work for future investigation", Journal of Business Vol. 19(1), pp. 85 - 102. 3. Curtis Greve and Jerry Davis (2007), Recovering Lost Profits by Improving reverse logistics, UPS 4. Dale S. Rogers and Ronald S. Tibben-Lembke (1999), Going Backwards: Reverse Logistics Trends and Practices, University of Nevada, Reno Center for Logistics Management. 5. Daugherty, P. J, et al. (2004), "Reverse logistics: superior performance through focused resource commitment to information technology", Transportation Research, Part E. Vol. 41, pp. 77 - 92. 6. Dennis W. Krumwiedea; Chwen Sheub (2002) A model for reverse logistics entry by third-party providers College of Business, Idaho State University, Pocatello, ID 83209- 8020, USA 810
16. 7. Dowlatshahi, S. (2000), Developing a theory of reverse logistics, Interfaces, Vol. 30, No. 3, pp. 143-155. 8. Fleischmann, M. et al (2004), Quantitative approaches to reverse logistics, Springer- Verlag, Berlin, Germany. 9. James R Stock (1998), Reverse Logistics in the Supply Chain, University of South Florida. 10. Janusz K. Grabara and Sebastian Kot (2009), Theoretical frames for designing reverse logistics processes, Technical University of Czestochowa, Faculty of Management, Poland 11. Gabriela Cecilia Stănciulescu (2001), Importance of Reverse Logistics for Retail Acts, The Bucharest Academy of Economic Studies, Romania. 12. Huong L. T. M., (2005), URENCO’s environmental business on 3R in Hanoi city, Production, pp. 1-30, Hanoi, Vietnam 13. Marisa P. de Brito (2003), Managing Reverse Logistics or Reversing Logistics Management? Erasmus Research Institute of Management. 14. MONRE (2005), Vietnam environment monitor: Solid waste management, pp. 1-65, Hanoi, Vietnam 15. Roberta Pinna and Pier Paolo Carrus (2006) Reverse Logistics and the Role of Fourth Party Logistics Provider, University of Cagliari,Italy 16. Olaf Schatteman (2005), Reverse logistics, Operational excellence 17. Pohlen, T. L. và Farris, M. T (1992), Reverse logistics in plastics recycling, International Journal of Physical Distribution and Logistics, Vol. 22, No. 7, pp. 35 -47 18. Stock, J, Speh, T, and Shear, H (2002), "Many Happy (Product) Returns", Harvard Business re-view. Vol. 80(7), pp. 16-17. 19. Viet L. H., và cộng sự (2011), Quản lý tổng hợp chất thải rắn - cách tiếp cận mới cho công tác bảo vệ môi trường, Tạp chí Khoa học Trường Đại học Cần Thơ, Số 20a, trang 39-50 20. Wipro Technologies (2009), Reverse logistics management - An effective strategy for revenue maximization in consumer packaged goods industry. 811