The Waste Electrical and Electronic Equipment (WEEE) Directive came into force in the UK last month, with anticipated howls about the cost and complexity of the new legislation from businesses.
Developed as a way of ensuring that producers of electrical equipment pay for the management of their products when those products come to the end of their lives, the directive isn't easy for businesses to get their heads around.
And time is running out: "producers" need to register with an approved producer-compliance scheme by 15 March and be able to manage discarded products by July. But with careful planning, businesses can turn this cost into competitive advantage.
First they need to understand the issue of obligation, though. Businesses need to be careful, as the definition of a producer is defined as any business that places the electrical product on the market in the UK. If the product is made in the UK, then it will be the brand owner. If imported, then the importer.
Any product that requires electricity to perform its primary function and falls into one of 10 categories of electronic and electrical equipment (EEE) will be covered. But there are exceptions, such as plant and machinery and military equipment, and products rated at more than 1,000 volts AC or 1,500 volts DC.
Once you have clarified you are obligated, there are other issues to consider. The first is the amount of EEE you place on the market.
At first glance reporting sales by units and weight should be straightforward, but these figures have to be reported separately for sales to consumers and sales to businesses. Given the cross-over between business and consumer products for some producers, this is not easy.
Obtaining weight information may be another time-consuming diversion and many producers are turning to specialists with product weight databases to calculate the tonnage their sales represent. Calculating the weight and determining the EEE category of products can turn into a huge task for businesses with numerous lines and outsourcing can make economic sense.
It is also important to consider how you are going to establish and manage a collection system for business products. Handling the collection of products in an unprofessional manner could have a negative impact on the image of your business. But getting this right can pay huge dividends to your business' reputation.
Like any supply chain, the complete solution is only as good as the weakest link in the chain. If you have appointed a WEEE partner on the basis of cost alone, remember you are handing over part of your brand equity - so choose someone with a strong brand and a good track record of customer service.
There's also the logistical cost to consider. As much as 60% of WEEE costs will come from the physical movement of goods and businesses will need a WEEE partner that understands reverse logistics. Establishing links with a WEEE compliance scheme that has strong relationships through the waste supply chain is yet another key decision.
But there is more to WEEE than simply registering. There are significant issues relating to brand protection, cost and compliance that need to be looked at well before July. Businesses that haven't done so already need to put this at the top of their agendas now.
Paul James is head of WEEE
services at DHL
No comments yet