Research ExperienceResearch Experience The UNITE The UNITE Mobility Mobility

Greece-LatviaGreece-Latvia

Elias A. Hadzilias, Dr. Eng.NTUA - RTU

May 20th, 2011

Elias Hadzilias – SCD 2010 IESEG School of Management 2Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 2

National Technical University of Athens

The National Technical University of Athens (NTUA) is the oldest educational institution of Greece in the field of technology, founded in 1836.

School of Mechanical Engineering, Section of Industrial Management and Operations Research.

Broad area of research activities.

Elias Hadzilias – SCD 2010 IESEG School of Management 3Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 3

The UNITE secondment

Host organisation: Riga Technical University, Department of Modelling and Simulation (

www.itl.rtu.lv/mik) Prof. Galina Merkurjeva UNITE Research theme: Internet of Things - Collaboration and

networked enterprises Research topic: Development of a reference model for the web-based

support of virtual enterprise networks in the reverse supply chain of the electronics sector in Latvia

Elias Hadzilias – SCD 2010 IESEG School of Management 4Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 4

Research objectives of the UNITE mobility in RTU

1. Analyse the reverse supply chain of the electronics sector in Latvia.

2. Identify potential areas of improvement.

3. Study the relevant decisions in the context of a closed-loop supply approach to develop the reference model.

4. Recognise opportunities for the Latvian economy and companies.

Elias Hadzilias – SCD 2010 IESEG School of Management 5Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 5

The closed loop supply chain concept

Distribution Reseller orCustomer

Sales

ManufacturingRawMatls

Overstocks

Refurbished product (Secondary Market)

Return Stream

ReturnsEvaluation

SpareComponents

Spares Recovery

Scrap

Forward supply chainForward supply chain

Reverse supply chainReverse supply chain

Elias Hadzilias – SCD 2010 IESEG School of Management 6Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 6

Types of returns

Commercial returns 30 to 40 day free returns policy in Greece

Repair / warranty returns

Leasing

End-of-use returns Cell phones: 80% replaced after first year of

use

End-of-life returns Mandatory take-back in EU

Elias Hadzilias – SCD 2010 IESEG School of Management 7Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 7

Example: reverse supply chain for mobile phones

Source: Valma, 2011Source: Valma, 2011

Elias Hadzilias – SCD 2010 IESEG School of Management 8Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 8

Example: reverse supply chain for computers

Source: Lee and Dong, 2007Source: Lee and Dong, 2007

Elias Hadzilias – SCD 2010 IESEG School of Management 9Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 9

Research methodology

Interviews with representatives from the following organisations: Dilers (http://www.dilers.lv) LETERA - Latvijas Elektrotehnikas un

elektronikas rūpniecības asociācija (http://www.letera.lv/)

LZE - Latvijas Zaļais elektrons (http://www.lze.lv/)

Collect information about the AS-IS structure of the reverse supply chain

Collect statistical data

Elias Hadzilias – SCD 2010 IESEG School of Management 10Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 10

AS-IS situation: Centralised reverse supply chain

Re-stock

Remanufacture

PartsRecovery

Scrap

ProductReturns

Retailers &Resellers

Centralized Evaluation & Test Facility

4th Party LogisticsValue Chain Integrator• Collect containers• Transporters

4th Party LogisticsValue Chain Integrator• Collect containers• Transporters

Elias Hadzilias – SCD 2010 IESEG School of Management 11Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 11

Facts about the electronics sector (WEEE cat 3 & 4)

E-waste collected in EU-27: ≈ 1.000.000 tons (2010) E-waste collected in Latvia: 1050 tons (2010) Electronic products (cat 3 & 4) put in the market: 4125 tons

(2010) The agreement reached on 14/3/2011 by the EU Council

foresees that member states must annually collect 45% of the average weight of electrical and electronic equipment placed on their national markets. This would take effect four years after the entry into force of the revised law. Four years later, member states are to achieve a 65% collection rate.

Latvia may attain a collection rate of 40-45% by 2016 and must achieve the full collection targets by 2022 at the latest.

Elias Hadzilias – SCD 2010 IESEG School of Management 12Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 12

Elias Hadzilias – SCD 2010 IESEG School of Management 13Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 13

Further research

Process statistical information to consider viability of the AS-IS model

Develop reference model Propose alternative WEEE management in the electronics

sector Feasibility studies:

Automation: real-time data collection using sensors, actuators and RFID Optimised flow: multi-tier system integration across the network,

collaborative decision making through decision support and business intelligence and networked risk management programs

Decision analysis: • Simulation models to evaluate trade-offs of cost, time, quality, service and

carbon footprint• Probability-based risk assessment and predictive analysis• Networked planning/execution with optimised forecasts and decision

support

Elias Hadzilias – SCD 2010 IESEG School of Management 14Dr. Elias A. Hadzilias – RTU Friday 20/5/2011 14

Paldies!Paldies!

Thank you!Thank you!

Σας ευχαριστώ!Σας ευχαριστώ!(Sas efharist(Sas efharistόό))

Feel free to contact me at:Feel free to contact me at:elhadzil@central.ntua.grelhadzil@central.ntua.gr