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Bottle Bill Common Ground: Issue #18 Optimised logistics

This newsletter was originally published in September 2023

In each issue, Bottle Bill Common Ground will explain a single principle or practice for a meaningful, modern DRS. We will cover topics such as ease of use for consumers, production standards for industry, and compliance and enforcement measures for government.

By following this roadmap, states can achieve major environmental and economic benefits

We are now focused on 10 essential practices — requirements on how to build, run, and maintain a modern deposit return system (DRS) for beverage containers.

Practice #8: Optimised logistics

Optimised Logistics ensures uniform and fair procedures for those who handle beverage containers returned to retailers and redemption centres. Container compaction would be applied wherever possible to reduce the number of trucks on the road and their travel time. Fuel
ecient or alternative fuel vehicles are encouraged for added environmental benefit. Producers would conduct regular auditing of service operators and vendor procurement procedures as a matter of
good business

If you’ve reached issue 18, you’re well aware that running a successful DRS comes with a multitude of responsibilities spanning various aspects, including financial management, operational compliance, and effectiveness parameters. When those responsibilities and their related parameters are clearly defined, the DRS works well. However, if left un- or ill-defined, the logistics of the system are compromised, leading to potential issues. System operators need to have the flexibility to manage DRS operations as they see fit, but this flexibility should always be balanced with the need to meet system performance and legal operational requirements. (Never forget Principle 8: Clear System Standards & Functions — the what and why of this super-important how).

When it comes to managing the logistical operations of the program, the system operator may choose to handle them directly or use contracted third-party service providers. It is in producers’ and the public interest to prioritise logistical approaches that balance cost-effectiveness and climate-friendly operations. Strategies for optimising logistics based on these parameters follow here.

DRS Operator Responsibilities

Optimising the logistics of a DRS starts with a review of typical system operator responsibilities. These responsibilities fall into four distinct categories: system operations; data management and reporting; marketing of collected material; and public communications. Let’s explore the specific activities associated with each category:

Optimising Logistics – Factors to Consider

When deciding whether to manage activities internally or through external vendors, a DRS operator typically evaluates factors such as expertise, quality and cost-effectiveness. The following performance criteria for contracts have proven effective in ensuring optimised, consistent, and fair DRS operations:

  • The service provider sets a minimum guaranteed collection schedule
  • The service provider loads all the containers it is picking up
  • Producers supply all necessary equipment to facilitate the smooth collection, and possibly emptying and sorting, of redeemable containers
  • The contracting agent provides the establishment with a document outlining the operation of the collection service, the scope of redeemable containers, and the rules required to receive service
  • Codified preference for service vendors that have implemented emissions-reducing operational procedures, e.g. reverse logistics and the use of alternative fuel vehicles

While it is vitally important to set up a strong performance-based contract with service providers, it is equally critical for the operator or producers to regularly audit their service operators. This will not only ensure smooth and effective operations but may potentially spare the operator or producers from reputational liabilities that could arise from inadequate service.

Managing a DRS is no small feat. No one can deny how complex it is for a system operator and their contracted service providers to carry out all of the operations. However, to achieve and maintain a high-performing DRS, corners must not be cut. Applying uniform and fair procedures, as well as clear performance requirements, will help deliver optimised contract logistics and quality assurances at every step of DRS operations.

Case Study: Quebec

Quebec’s newly legislated DRS reforms, whose implementation will begin in 2023, include specific provisions regarding the selection of service providers. Namely, they require producers to consider the following aspects when choosing a service provider:

Reduction in greenhouse gas emissions in the collection and recycling processes, as well as their transportation routes and modes for transporting collected containers

Ability to meet transportation, sorting, and recycling requirements for containers

Transparent business model with detailed impact on the community

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Money Back

This resource is in line with Reloop’s programme for packaging subject to deposits or charges.

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