On March 6, 2025, the SCLA Think Tank convened for an insightful discussion on reverse logistics and Extended Producer Responsibility (EPR). Led by Dr. Harold Krikke, a leading authority in reverse logistics and a professor at the Open University of the Netherlands, the session explored the complexities and opportunities within product stewardship and the circular economy.
About the SCLA Think Tank
The Supply Chain Leaders in Action (SCLA) is the premier think tank in global supply chain, bringing together the best minds from industry and academia. Every other week, we feature a guest speaker who provides fresh insights to our members, helping them navigate emerging challenges and opportunities in the supply chain landscape.
Key Discussion Points
Brand Owners' Role in Extended Producer Responsibility
Dr. Krikke emphasized that brand owners play a crucial role in EPR by setting up collection and recycling systems. These systems, funded through consumer fees at the point of sale, vary across regions but often involve collaboration among multiple supply chain actors, including retailers. He underscored the need for product designs that facilitate easier recycling.
Key Components of Extended Producer Responsibility
- Product Design: Producers are encouraged to design products with consideration for their environmental impact, making them easier to recycle or dispose of properly.
- Waste Collection and Recycling: Producers are responsible for setting up or contributing to systems for the collection, recycling, and proper disposal of their products when they become waste.
- Financial Responsibility: Producers may be required to financially support the collection and recycling infrastructure, potentially involving fees or taxes based on the environmental impact of their products.
- Regulatory Compliance: Governments often implement EPR through regulations that require producers to comply with specific waste management and recycling standards.
Challenges in Product Stewardship and Circular Economy
- Current EPR models focus on material recycling but lack incentives for reuse, refurbishment, or remanufacturing.
- Individual brand owners who develop their own systems tend to succeed more than those relying on collective efforts.
- Geopolitical disruptions necessitate resilient supply chains and long-term investments in circular business models.
- A shift from regulatory compliance to value-chain thinking is essential for sustainable product stewardship.
The Role of Reverse Supply Chains
Dr. Krikke explained how reverse supply chains contribute to economic and environmental value. While downstream partners and brand owners typically handle recycling, there is limited responsibility placed on upstream suppliers.
Global Recycling Practices and Consumer Participation
- In Europe, companies must implement collection and recycling programs or join collective organizations.
- In the U.S., regulatory adoption is slower due to resistance to government intervention.
- Consumer participation remains a key factor in successful recycling programs. Discussions highlighted how branding and communication impact recycling behaviors, with inconsistent practices leading to consumer disillusionment.
State of Oregon’s Packaging Regulations
An SCLA member discussed Oregon’s new requirement for companies to disclose single-use packaging data by the end of the month. The regulation, which will be followed by a tax levy on manufacturers, is expected to be implemented in other states, including California, and in Canada. The discussion covered legal and compliance challenges for businesses, economic implications of packaging regulations, and how companies can navigate emerging policies.
Impact of EPR Regulations
- Quota/targets: Set on collection and recovery.https://sclaa.com.au+3University of West Florida+3Cushman & Wakefield+3
- Implementation: In the EU, UK, Australia, and parts of Asia/USA.
- Key industries affected: Cars, packaging, and electronics.
- Complementary regulations: Include hazardous material handling, repairability requirements, and monitoring.
- Responsibility: Brand owners/producers are responsible for funding, while multiple supply chain actors manage operations.
Environmental Responsibility and Workforce Flexibility
The discussion emphasized the business opportunities within environmental responsibility and the need for proactive engagement. The Think Tank also highlighted the upcoming April 3 presentation by Kira Caban of Instawork on the 2025 state of the flexible workforce, focusing on workforce adaptability amid labor shortages.
Conclusions on the Circular Economy
- Don’t wait for regulations – explore and develop a business case.
- Integrate eco-design, reverse supply chains, and business model resilience.
- Make long-term investments depending on product life cycles.
- Prioritize reuse before recycling.
- View the circular economy as a multi-value chain opportunity.
The Think Tank session reinforced the importance of cross-industry collaboration in navigating sustainability challenges and regulatory changes. As the landscape of product stewardship evolves, SCLA remains committed to providing insights and facilitating dialogue that drive meaningful action.
For more information about SCLA and our initiatives, visit our website. To connect with Dr. Krikke, visit his LinkedIn profile.
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