Creating value, not waste: Ecosystem collaboration for take-back

A take-back system can reduce the usage of virgin natural resources by reusing discarded products. However, if actors in the take-back system treat the discarded products as waste, the reuse value potential is lost. A situation that negatively impacts the sustainability and financial performance of the take-back system. The study explores the reuse of discarded white goods using data from multiple take-back value streams for discarded white goods. This is not an ideal case of a take-back system but rather a case showing some of the challenges in creating an efficient one. The study identifies interest alignment between collaborating actors as a key condition for maximizing the recoverability of discarded products, capturing value, and reducing value loss. Additionally, information asymmetry impacts value loss and financial performance. The study proposes introducing governance mechanisms and leads firm initiatives to promote conditions conducive to ecosystem actor alignment. An effective take-back system usually requires a lead firm - an orchestrator - responsible for the structure and performance of the take-back system, including governance, commercial arrangements, go-to-market coordination, value creation mechanisms, value sharing mechanisms, and risk management. • Resources are lost in take-back systems. • Treating products as waste instead of value results in excessive damage. • Actor behavior in the value stream must change to boost take-back value creation. • Information sharing reduces operations costs for a reuse process. • Proposed governance mechanisms are contracts specifying conditions for reuse and lead firm initiatives.