By Patrick Avenell
The Australian and New Zealand Recycling Platform (ANZRP) will end its business relationship with logistics provider, Infoactiv, on 30 September 2013 and begin establishing its own recycling network. Infoactiv had worked as ANZRP’s recycling services provider for only one year, setting up TechCollect, the brandname for the ANZRP's TV and PC recycling bsuiness.
This split clears the way for Infoactiv to become the fourth approved ‘co-regulator’ under the legislation.
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In a letter sent to various recycling service providers on Wednesday 26 June 2013, Infoactiv managing director Helen Jarman said: “Infoactiv’s role as a Program Manager will cease on 30 September 2013, after its initial year of establishment of the TechCollect program”.
TechCollect was ANZRP’s publicly promoted recycling scheme, made up of permanent and ‘one-off event’ locations where people could dispose of end-of-life televisions and computer hardware for recycling. In addition to confirming the split, ANZRP CEO Carmel Dollison said the ANZRP would retain ownership of all extant TechCollect sites.
“As part of ANZRP’s strategic plan for TechCollect's second year, we have begun the process to internalise the program management function, which during year one has been conducted on our behalf by Infoactiv,” Dollison said. “We are happy to say that our relationship with Infoactiv remains very positive and we have received their support to bring the TechCollect program management function into ANZRP.
“This change will see the initiative well-placed to establish more direct relationships with our valued collection partners.”
This move to in-house logistics will bring the ANZRP into line with the other two approved co-regulators, DHL Supply and E-Cycle Solutions (part of QLS Group).
Unlike, DHL and the QLS Group, which are for-profit, dedicated logistics providers, the ANZRP is a not-for-profit body established by the various industry groups to participate in the National Television and Computer Recycling Scheme. Its clients include high profile technology companies such as Apple Australia, Canon Australia, Panasonic Australia and Toshiba.
While being not-for-profit appears advantageous on face value, the ANZRP is the most expensive co-regulator for clients due it not having a heritage in logistics services.
While DHL and E-Cycle Solutions have both announced success in meeting their 2013 financial year targets, the ANZRP had previously remained silent, leading to industry speculation that it was behind its targets.
One industry insider close to this Scheme said the ANZRP could fall thousands of tonnes behind its target due to the challenge of setting up new systems for the second year running.
“ANZRP will have to set up all the infrastructure to establish the collection points, and arrange the transport,” the insider said. “It is a major logistical exercise and they have no experience doing this.”
Dollison rejected this speculation:
“TechCollect is well on track to meet all of its recycling targets and is looking forward to expanding the program in year two,” she said.
Failing to meet a yearly target initially results in the difference being rolled over to the next financial year. Continued difficulties can result in more drastic punishment, including the stripping of a provider’s co-regulatory status.
“In our first year we have secured over half of all possible liable parties as members, established 80 permanent sites and conducted 60 recycling events, providing access to over 86 per cent of the Australian population, whilst maintaining the highest health, safety and environmental standards,” Dollison said.
Should Infoactiv gain regulatory approval, a process that can take three months, it will then become a new direct competitor to the ANZRP. All co-regulators compete to sign up ‘clients’ — the importers of TVs and PCs into Australia — that pay a levy based on weight to fund the recycling. Infoactiv’s institutional intelligence could provide it with a significant competitive advantage in negotiations.
Helen Jarman provided the following breakdown of Infoactiv’s achievements over the past 12 months:
“Infoactiv has played a critical role in helping ANZRP establish the TechCollect program, and has:
• Signed/opened over 140 services, across every state and territory nationally;
• Staged 61 targeted collection ‘events’ nationally to enable community participation and lift collection volumes;
• Provided a collection service to over 86% of the population;
• Built the program collection rates and driven down input costs against the budgeted program costs.”