Samsung Company: Green Reverse Logistics and Supply Chains

Introduction

Nowadays, the problem of ecology and pollution is essential as multiple factories have an adverse impact on the planet’s environment on a daily basis. The industry of electronic gadgets plays a significant role in this issue as all the plastic that is not recycled influences nature negatively. The following paper will discuss the case study of the green reverse logistics and supply chains in the electronics industry promoted by Samsung.

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Case Study Description

As it is mentioned above, the problem of pollution is prevalent in every part of the world due to various companies that do not recycle the products they produce and use new raw materials for every invention or even restyling their electronic gadgets. Samsung is a transnational corporation that specializes in manufacturing modern electronic devices. To decrease the level of the planet’s pollution, managers of the firm decided to use the strategy that allows its customers to take particular items that satisfied other people for free. Also, the company is using another method of recycling their raw materials. According to the rules of the discussed program, the clients who have various problems with their electronic gadgets might send their items to recycling centers established by the corporation. These facilities are obliged to identify all possible defects in the devices they receive, repair them if needed and sell again at lower prices.

Case Study Problem and Objective

The primary problem of the case study mentioned above is presented by the lack of plastics and other raw materials in the recycling industry. It is essential to use the same products for large electronic devices manufacturers as this strategy is aimed at reducing the planet’s pollution. To resolve the given issue, the Samsung Corporation decided to open over two hundred recycling facilities all over the United States of America. It would be proper to mention that such a method of materials’ reuse also makes the manufacturing process less expensive, whereas the final products turn out to be cheaper as well. The main objective aimed at eliminating the given concern is to lower the number of produced electronic devices and focus on their reparation and reuse. Many firms allow their clients to take necessary parts or products for free if they are not good enough to be sold again.

Supply Chain Method in the Case

The supply chain method used in the case discussed above is dependent on the number items received from customers as unwanted materials. To produce new printer cartridges, the Samsung Company is obliged to gather as much broken or used items as possible. To acquire the primary raw material required for the further production of other electronic devices, it is necessary for recycling managers to find the products that cannot be repaired and sold at lower prices.

Once it is obvious that a certain number of printer cartridges cannot be used anymore, the load of plastic, metals, and other raw materials extracted from it is sent to the melting facilities. These factories make new plastic panes that are intended to be used during the manufacturing process of the same or newer printer cartridges models. However, there is a significant issue that might concern the manufacturer and recyclers mentioned above. This problem is presented by the fact that plastic from different parts of various products cannot be melted and mixed as such an approach might lower the quality of the final elector device.

After all, the components of Samsung products are put together, packed, and ready to be sold, all the boxes are sent to regional distribution centers. People who work at facilities are supposed to check all the printers or other devices they receive. When all the quality standards are followed, the goods are supposed to be given to local retailers. Small stores are required to find customers and receive payments for their services to gain profit for the manufacturing company.

It would be proper to mention that such supply chain method is used by many corporations as it is the most efficient and cheap way of logistics. The operations described above reduce manufacturers’ delivery expenses. However, the majority of modern factories receive their raw materials new, whereas it is more beneficial to use plastics and metals thrown away by the firm’s clients. There is another interesting fact that is important to remember in the given case. When the clients sent their printer cartridges to Samsung recycling centers, they receive new models of the same product for free if it is needed.

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It is necessary to maintain the surface of our planet clean and air fresh. The majority of factories disregard this ecological issue due to the profits that they might gain with the help of such business organization. Unfortunately, only several companies change their production strategies to satisfy their clients. The supply chain method described above requires much investment. However, it is supposed to buy itself in one decade.

Solution: Case Details

There are many methods of recycling the materials received from printer cartridges that run out of their exploitation terms. As it is mentioned above, all the plastic details are melted at specific facilities. However, there is another solution that helps to gain additional profits and maintain the environment clean. As there are multiple metals used in the manufacturing process, all the recycled details can be sold to other manufacturers or jewelry stores that might need these materials for their own businesses. It would be proper to mention that buying titanium, silver, gold, and copper that is extracted from unused electronic devices is much cheaper than unused minerals. Also, this method keeps all the natural resources mentioned above untouched.

Case Questions

Consider the examples of recycling and refurbishing de- scribed in the case. Who are the various stakeholders who benefit from these efforts? How do efforts to build sus- tainable supply chains differ from simple good business practice?

The case study described above presents two examples of recycling and refurbishing the materials extracted from broken or old products. As it is mentioned above, some printer cartridges are repaired and sold at lower prices (comparing to new models). However, when there is no chance to fix technical issues, all the products are melted and used for new electronic devices. Moreover, such computer components as various batteries, keyboards, screens, and other parts might undergo the same process that is aimed at the improvement of the environment and elimination of particular pollution issues that people face on a daily basis.

It would be proper to mention that there are many individuals interested in reproduction, refurbishment, and recycling materials used in the manufacturing process of electronic devices. Also, several companies tend to engage in the same program to improve their rating among customers and contribute to the campaign of saving our planet’s damaged nature. Therefore, various stakeholders who might benefit from the efforts described above are listed below:

  • The American government. It is possible to see that many politicians are trying to develop different strategies to reduce the rate of pollution in the country. Therefore, some financial and national institutions might invest their money in the program initiated by Samsung to keep the environment as clean as possible.
  • Customers. Clients are always interested in buying some products that will help improve their living standards. When people know that the money they give for various electronic devices is spent on the improvement of their habitats’ quality, they will prefer a certain manufacturer to other competitors.
  • Garbage and toxic chemicals recycling companies. These firms are obliged to gather as much dangerous material and garbage that can be used several times as possible. Therefore, it is beneficial for them to let other people contribute to the same activity.
  • Electronic gadgets manufacturers. As it is mentioned above, the raw materials expenses reduce significantly due to recycling programs. This strategy helps transnational corporations save millions of dollars on purchasing new plastics, minerals, and metal substances used in the production process.

The efforts to build sustainable supply chains significantly differ from good business practice. The primary goal of any business and management is to gain as many profits as possible with low initial and regular expenses. Therefore, many companies aim at earning money, whereas other essential factors are disregarded. On the other hand, when employees and corporations’ owners try to improve their supply chains, they show their respect to their clients and other members of the society. When all the supplies logistics are organized well and various recycling strategies are considered, more people might benefit from the appropriate manufacturing management.

Would Samsung have put in place the Take Back & Re- cycling program in a business environment that did not emphasize sustainability? Why or why not? What about ATCLE’s refurbishing services?

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The Samsung Company would never put in place the Take-Back & Recycling program in a business that does not emphasize and support sustainability. Before discussing the given topic, it would be proper to state that the term of sustainability implies our planet’s energy that is intended to protect its surface from being affected by various damages caused by humans. As Samsung promotes the development and manufacturing of electronic gadgets with the help of services and programs that prevent the environment from being polluted, the company would not support other firms that contradict the given ideology by their actions. It would be proper for the Korean company’s managers to collaborate and merge only with partners that are ready to change their supply chains to improve the living standards of people who buy their products on a regular basis. Perhaps, the firm made some attempts to put in place its recycling program in a business environment that does not support the philosophy described above. However, every partner has to have a desire to improve the environment and contribute to the planet’s benefits.

The refurbishment services of ATC Logistics and Electronics Company are also aimed at reducing the costs of purchasing new materials by replacing them with recycled parts. If people who buy their products did not know about the firm’s supply chain organization, the company’s rating would not increase. Therefore, there would be no point to adopt the program mentioned above if members of the society were not aware of various pollution issues.

In your opinion, will sustainability become another core measure of operations and supply chain performance, in addition to cost, quality, delivery, and quality? Why or why not?

Sustainability will become another core measure of operations and supply chains performance (along with such factors as products’ cost, quality, and delivery). As it is discussed in the previous sections of this paper, clients are likely to support the companies that remain effective and use modern methods of maintaining the environment clean. It would be proper to mention that customers care about all the processes used in manufacturing because there is a big competition on every market. Therefore, electronic products are almost the same, regardless of their brand and innovative functions. As contemporary individuals live in a consumerist society, they are focused on different issues presented by transnational corporations. Also, people are concerned about the amount of tremendous harm caused to the planet’s nature. The majority of buyers want the electronic devices they buy to be cheap and of a high quality. However, the list of these priorities will also include the manufacturers’ sustainability in the future. The money that consumers pay for their purchases is no longer spent on the raw materials expenses. Instead, it is invested in the development of new green technologies and appropriate programs that focus on the popularization of different recycling strategies.

Conclusion

Samsung and ATC Logistics and Electronic Companies are the first businesses that started promoting recycling programs in the United States of America. These corporations repair and fix the broken products and sell them at lower prices. However, if there is no chance to repair a particular detail or device, they send them to recycling factories that allocate the acquired materials among different manufacturers for the further production process. Such a strategy saves the firms’ finances and prevents the environment from being polluted with toxic gases and materials that are unlikely to disintegrate fast. Clients are likely to support such programs and businesses as they want their money to be invested in the future of our planet, whereas other firms aim only at their individual benefits.

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StudyCorgi. (2021, April 24). Samsung Company: Green Reverse Logistics and Supply Chains. Retrieved from https://studycorgi.com/samsung-company-green-reverse-logistics-and-supply-chains/

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"Samsung Company: Green Reverse Logistics and Supply Chains." StudyCorgi, 24 Apr. 2021, studycorgi.com/samsung-company-green-reverse-logistics-and-supply-chains/.

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StudyCorgi. 2021. "Samsung Company: Green Reverse Logistics and Supply Chains." April 24, 2021. https://studycorgi.com/samsung-company-green-reverse-logistics-and-supply-chains/.

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StudyCorgi. (2021) 'Samsung Company: Green Reverse Logistics and Supply Chains'. 24 April.

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