REVERSE LOGISTICS IN CONNECTION WITH WASTE MANAGEMENT

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1 REVERSE LOGISTICS IN CONNECTION WITH WASTE MANAGEMENT Rudolf Kampf 1, Daniela Hykšová 2 Summary: This article focuses on waste management and its connection with reverse logistics, case study of waste management in the Pardubice public transport company. Article focuses on suggesting an alternative way of waste processing of polluted diluents. Improving waste processing could gain expenses saving and generate more profit from this area. Key words: Reverse logistics, waste management, Pardubice public transport company, wastes 1 INTRODUCTION Despite the pressure from the side of law and society - on the area of ecology and strictly connected waste management - is growing, most companies in Czech Republic underestimate these problem. Common opinion is, that department of waste management is necessity - very expensive necessity. On the contrary, it should be improvement. If each company would pay more attention to each activities of waste management and treat it as an equal part of reverse logistics, the whole waste management department would gain more income. 2 WASTE MANAGEMENT IN COMPANY Waste management in companies is based either on legal framework of the Czech Republic, and also of the European Union. Main laws, intimations and directions based on legal Framework of the Czech Republic are: Zákon č. 185/2001 Sb., o odpadech; Zákon 477/2001 Sb., o obalech; Vyhláška MTP č. 503/2004 Sb. definující Katalog odpadů, Seznam nebezpečných odpadů a seznamy související s vývozem, dovozem či tranzitem odpadů, Vyhláška MTP č. 383/2001 o podrobnostech nakládání s odpady, 1 doc. Ing. Rudolf Kampf, Ph.D. Univerzity of Pardubice, Jane Perner Transport Faculty, Department of Transport Management, Marketing and Logistics, Studentská 95, Pardubice, Tel.: , , 2 Ing. Daniela Hykšová Univerzita Pardubice, Univerzity of Pardubice, Jane Perner Transport Faculty, Department of Transport Management, Marketing and Logistics, Studentská 95, Pardubice, Tel.: , Kampf, Hykšová: Reverse logistics in connection with waste 94

2 Main documents of the European Union are: Směrnice Evropského parlamentu a Rady č. 94/62/ES o obalech a obalových odpadech, Směrnice o skládkách odpadů 31/99/ES, Rámcová směrnice rady č.75/442/es o odpadech. These documents cover whole problems regarding waste management. They define each terms, rules of cataloguing, stocking and financing. Complete list of each terms are shown in table no. 1. Tab. 1 - Common factors of laws, directions and terms about waste and wrapping Activity Zákon č. 185/2001 Sb., O odpadech Zákon 477/2001 Sb., O obalech Rámcová směrnice rady č.75/442/es O odpadech Vyhláška č. 383/2001 Směrnice Evropského parlamentu a Rady č. 94/62/ES Definition Cataloguing + Marking Prevention Storing/transportation + Reverse taking Financing + + Recycling Information systems THE PROBLEMATICS OF WASTE MANAGEMENT IN THE PARDUBICE PUBLIC TRANSPORTATION COMPANY A.S. Source: Authors The Pardubice public transportation company a.s., is providing urban mass transportation in town of Pardubice. It is also a significant maker of wastes, which procession is main task of few external companies. Transportation company is producing approximately 141,3 tons of waste per year. This amount consists of civic, dangerous and other waste. Most of the product amount of waste is being processed using classic ways, to be more precise it is transported to external company, where it is being processed for initial price. Part of this waste, approximately 31% is sold to another companies by transportation company. Resulting comparing of expenses and pay-offs items of waste management is positive, therefore this part could be considered as healthy balance sheet. Despite that transportation company is gaining income from this part, not all possible options gaining profit are used. 3.1 Alternative waste processing suggestion Suggestion of alternative waste processing solution focuses mainly on dissolution reagents, whose are being used for spray guns maintenance. Total expenses connected with Kampf, Hykšová: Reverse logistics in connection with waste 95

3 gaining and extermination of dissolution reagents are around CZK per year. Detailed specification of these expenses are covered with table no. 2 Tab. 2 - calculation of expenses connected with both acquiring and extermination of dissolution reagents Sort of activity Year income / Year expense Dissolution reagents washing consumption Expenses for 1l of dissolution reagent Expenses for buying dissolution reagent Waste production /polluted diluent / Expenses for extermination of 1kg of waste Expenses for extermination of wastes Total emissions Tax for 1 kg of emissions Tax for polluting the air Total expenses 800 l 20,31 CZK CZK 550 kg 13 CZK CZK 250 kg 2 CZK 500 CZK CZK Source: Public transportation company of Pardubice a.s., authors Currently there are many devices, able to recycle or in other manner of speaking able to process produced waste. One of them is distillation devices, whose are providing recycling and repeatedly use of dissolvent reagents used for cleaning and degreasing. Using basic principle of distillation, polluted reagent is cleaned of resin, pigments, varnish, oil etc. Rests of distillation are lodging on the bottom of special tank and after ending the distillation they can be removed without any obstructions. Effectivity of these devices is high. Based on amount of pollution it is possible to get back almost 65% of total amount of used reagents. Acquisition of such device would be advantage from long-term aspect, because it would mean saving money spent on extermination of polluted diluents and buying a new one. Total financial saving (table no.3) is based on rough financial saving, from which expenses for electricity and function are subtracted. Kampf, Hykšová: Reverse logistics in connection with waste 96

4 Tab. 3 - Expenses and Revenues Expenses for electricity during operation of Rough financial savings distillation device Diluents saving 520 l Duration of 12l diluent distillation 4 hours Financial saving CZK Total duration of 800 l of diluents distillation 268 h/year Resulted waste saving 344 kg Electric input of distillation device 1,04 KW Waste extermination saving 4 094CZK Power drain 279 kwh/year Total rough financial saving CZK Electricity expenses 3 CZK/kWh Total expenses 837 CZK Total financial savings Rough financial savings Total electricity expense Total financial expense CZK -837 CZK CZK Source: Public transportation company of Pardubice a.s., author From above tables, it is obvious that buying a distillation device would be possible saving of 57% spent expenses in this case. It is also important to compare return of investment time with lifetime of distillation device which must be higher. 4 CONCLUSION Waste management is area, on which we can take two points of view. First point of view is based on fulfilling legislative regulations without any creative thoughts. Resulting effect is, that companies still thinks about waste management as of necessary financial evil. Second point of view is more complicated in organizing each activities and also more time consumption. It is based on searching for as many alternatives suitable for legislative regulations and company needs as possible. It is also based on searching for ways and methods of processing product waste and therefore gaining more savings of expenses and in ideal case gaining income. 5 ACKNOWLEDGEMENTS This article was created during solution of project MD ČR CG Modeling of waste logistics in urban agglomerations. Kampf, Hykšová: Reverse logistics in connection with waste 97

5 REFERENCES [1] HOBZA, M. Logistika. Hradec Králové: Gaudeamus, ISBN [2] ŠKAPA, Radoslav. Reverzní logistika. I. Vydání. Brno: Masarykova univerzita, ISBN [3] SIXTA, Josef, MAČÁT, Václav. Logistika teorie a praxe. 1. vyd. Brno: CP Books, s. ISBN [4] Zákon č. 185/2001 Sb., ze dne 8. Března 2001 o odpadech. [5] Zákon č. 477/2001 Sb., ze dne 4. prosince 2001 o obalech. [6] Vyhláška MŢP 383/2001 Sb., ze dne17.října 2001 o podrobnostech nakládání s odpady. [7] Gamin s.r.o. [online] [cit ]. Dostupné z WWW: < Kampf, Hykšová: Reverse logistics in connection with waste 98

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