After-sale product lifecycle: building a culture of repurchase, repair and reuse

October 30, 2023

In the complex realm of supply chain management, the journey of a product doesn't end with its sale. Beyond the standard stages of manufacturing, sales, and marketing lies a crucial but often overlooked aspect: after-sale product lifecycle  servicing such as repurchase, repair and reuse.

The adverse effects of neglecting these processes can be profound and widespread, with consequences ranging from environmental degradation, particularly with respect to electrical waste, to missed opportunities for regeneration. Moreover, a manufacturer’s failure to properly ensure after-sale disposal must be factored into its balance sheet in a more significant way.

Although supply chain regulations have been enacted in the area of procurement, manufacturing, and even marketing, the sphere of product after-sales remains relatively unregulated. The impact of this gap in the supply chain is not only environmental but also economic.

When products reach the end of their lifecycle, a lack of established processes for repair, removal, reuse, or replacement can result in overproduction and overconsumption. This, in turn, leads to products prematurely ending up in landfills, often in other countries. It also leads to certain manufacturers having a balance sheet that overstates their assets, without appropriately reflecting the full scope of environmental remediation that will eventually be required due to use of their products.

A fitting example lies in the world of electronics, mobile phones, and batteries. Here, although companies are introducing take-back policies and incentivizing customers, it remains largely on a disclosure-only or voluntary basis. This approach works effectively for high-value items like mobile phones and laptops, but the same can't be said for items like furniture and tires.

Many modern materials are now labeled as "recycled," yet studies reveal that only a fraction of these products have been subject to recycling or reuse. In many cases, a lack of standard regulations leads to a situation where the term "recycled" is more aspirational than factual.

Moreover, the absence of stringent regulations on certain products, like e-cigarettes, originally intended to mitigate health concerns, has resulted in the repurposing of these items for other illicit drugs, undermining their original purpose and amplifying the dangers of addiction.

The solution is clear. The principles of regeneration and the circular economy must guide both strict policy-making and actions to positively incentivize and reward consumers for repairing and reusing.  It's a shared responsibility for all parties involved in the supply chain.

In recent years, a growing global awareness of this issue has spurred action. France has been a leader in this space, introducing a repairability index and a law that requires manufacturers to make spare parts available, ensuring that products like smartphones and appliances are easier to repair, and spare parts are accessible even after product discontinuation.

In addition, the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive and Batteries Directive mandate proper electronic and battery waste management, focusing on recycling and safe disposal. Circular economy initiatives, like those in the Netherlands, are pushing for products designed with the entire lifecycle in mind, fostering a culture of repair and reuse. Various countries have also implemented e-waste monitors, emphasizing the importance of responsible disposal and recycling practices.

Beyond electronic products, numerous countries have also recognized the need for environmentally responsible practices in other sectors. The EU’s Extended Producer Responsibility (EPR) framework encourages manufacturers to take responsibility for the entire lifecycle of their products, from production to disposal. In addition, the Product Stewardship Act in Australia ensures that manufacturers take responsibility for collecting and safely disposing of products such as batteries, electronic devices, and tires.

These regulations, both within Europe and globally, represent a collective effort to shift toward more sustainable product life cycles. They emphasize repair, reuse, and responsible disposal, encouraging manufacturers to produce more durable and repairable goods while empowering consumers to make eco-friendly choices. The benefits aren't just environmental; sustainable after-sales processes often result in economic advantages, as companies discover that responsible stewardship is also financially beneficial.

In conclusion, the importance of after-sales processes cannot be overstated. With the right regulations and practices in place, we can reduce overconsumption, minimize waste, and protect our environment, paving the way for a more sustainable and responsible future.

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