Analysis of efficiency of waste reverse logistics for recycling

Brazil is an agricultural country with the highest pesticide consumption in the world. Historically, pesticide packaging has not been disposed of properly. A federal law requires the chemical industry to provide proper waste management for pesticide-related products. A reverse logistics program was implemented, which has been hailed a great success. This program was designed to target large rural communities, where economy of scale can take place. Over the last 10 years, the recovery rate has been very poor in most small rural communities. The objective of this study was to analyze the case of this compulsory reverse logistics program for pesticide packaging under the recent Brazilian Waste Management Policy, which enforces recycling as the main waste management solution. This results of this exploratory research indicate that despite its aggregate success, the reverse logistics program is not efficient for small rural communities. It is not possible to use the same logistic strategy for small and large communities. The results also indicate that recycling might not be the optimal solution, especially in developing countries with unsatisfactory recycling infrastructure and large transportation costs. Postponement and speculation strategies could be applied for improving reverse logistics performance. In most compulsory reverse logistics programs, there is no economical solution. Companies should comply with the law by ranking cost-effective alternatives.