Happy Returns

SAN FRANCISCO—While raw materials recycling has been taking a recessionary hit, many shippers of finished goods are finding a demand for “seconds.”

 That’s the conclusion drawn by Pietra Rivoli, an associate professor in the Robert Emmett McDonough School of Business at Georgetown University in Washington, DC, who noted that some creative solutions have been crafted by reverse logistics in the used garment industry.

 “Shippers who are reactive and agile enough to anticipate new market trends will hold their own in an unsteady economy,” she said.

 As one prominent example of such market prowess, she cited Clifton, New Jersey-based Trans-Americas Trading Co., which runs a global garment recycling business.

 “I’ve studied their business model, and it one that seems to understand fashion cycles and how they work,” she said.Rivoli, who specializes in corporate and international finance as well as social and public policy issues related to international business, is also the author of  The Travels of a T-Shirt in the Global Economy.
“Repackaging and turning around inventory in this business is very difficult,” she said, “because there’s so much human psychology at play. How does one know that a swimsuit that is rejected in the Ukraine, is going to be embraced in some part of Africa? There’s a tremendous amount of volaltility to this kind of forecasting.
And a considerable logistics challenge, said Eric Stubin,  president of Trans-Americas Trading Co.
His company operates in a 65,000 square foot / 3 acre facility, where they utilize a network of slider belt conveyors in their processing operations.  
“These conveyors are arranged in a pattern that speeds the movement of the apparel between stations, and also ‘pushes’ the handlers to maintain an ambitious pace while not overwhelming them,” said Stubin.“Employees inspect and classify — and in some instances de-label — and package some 140,000 garments daily,” he added.
To read more on this subject check our our archives: "Reverse Logistics…."