DHL Envirosolutions Australia: End-of-Life Management Service for E-Waste

The Regulatory Framework

Case 6: DHL Envirosolutions Australia: End-of-Life Management Service for E-Waste, by Lieven Demeester, Christopher Dula; June 9, 2014; Singapore Management University; #SMU205. (pp 165-180) Product-stewardship services relied on an Australian government regulatory framework built on the concept of extended producer responsibility (EPR), a policy that required producers to manage their product’s end-of-life segment by recycling a certain tonnage of electronic waste relative to their product tonnage imported into Australia. Envirosolutions was one of the approved providers of business-to-business (B2B) logistics services for collecting and recycling waste on behalf of producers. In response to requests by ANZRP, a competing provider, the Australian regulator decided not to separate the categories of computers and televisions, but to set combined recycling tonnage requirements. As the in-house expert on regulation, Nichole Green, The Account Manager for Product Stewardship, decides to bring this matter up with the senior director of Envirosolutions, Peter Bruce, and with the operations and compliance manager, Mark Philips. Given the regulatory changes and the entry of a new provider, they need to analyze the regulatory and competitive environment to fine-tune their future strategy. With the initial success in Australia, DHL is also evaluating the feasibility of their success in product-stewardship services in other Asian markets. Learning Objective This case discusses the benefits of extended producer responsibility and reverse logistics. It is suitable for a course on sustainable operations or supply chain management. The case also lends itself to a discussion of the competitive strategy of a B2B service provider and can be used in a course on strategic management or competitive strategy. Students should focus on the logistical aspects of the case and doing business and engaging in logistics in the Australia. They may wish to address and discuss several of the following: Discuss what ways the Australian Product Stewardship regulation aim to protect the environment? Is it effective in doing so effective in doing so? What are the pros and cons of this take-back regulation? Why did ANZRP ask the government to use a combined quota instead of separate quotas for television and computer categories? Why do you think the government agreed to the requested change? Does this change make the producer responsibility more collective or more individual? With a 10% margin, estimate how much DHL Envirosolutions charged its computer customers and television customers per tonne before and after the regulatory change. How will the change in EPR regulation affect DHL Envirosolutions? Describe the end-of-life supply chain for television and computer products in Australia under the regulation. Analyze the market position and performance of DHL Envirosolutions as a co-regulatory arrangement for e-waste in Australia and explain its success. How should DHL Envirosolutions Australia position itself competitively vis-a-vis ANZRP and SIMS recycling? You are required to create one post and respond to the post of one other student (using 200 words). Your main post is due by Day 5 at 11:59 PM, and your response to another student’s post must be completed by Day 7 at 11:59 PM. Grades will be based on the criteria described in the Discussion Participation Grades table found in the syllabus.