The application of logistic approach to the management of reverse flows

The hope is that somewhere out there lies a solution to all those disappointments and their attendant costs. Most companies operate two or more distinct physical supply chains- and sometimes a number of them. The higher the percentage of cost that can be recovered, the better.

Auctions, international dispositions where the product is shipped offshore, factory outlets, value retailers such as firms like T.

The first, and often most important attribute, is the quality of the product being returned. Or put another way, to turn trash into cash. This represents approximately 0. But remember, the products being returned reach all the way back to manufacturers and raw materials suppliers across the country and around the world.

This could be the case, for example, where merchandisers responsible for buying product that did not sell well to the consumer are in charge of managing those returns. Any reverse logistics initiative should reduce real costs while better satisfying customers, and, as Steve Banker suggests, play a part in building sales.

Another reverse logistics consideration is brand protection. It can also make a huge difference in retaining consumer loyalty and protecting the brand, as we explain more fully below.

Drains are similarly critical to a product supply chain. All logistics activities are supply chain activities. Both of these retailers operated on a then-innovative business philosophy: We then describe some of the key considerations in building a reverse logistics competency and then list key metrics that need to be put in place.

Capturing the potential benefits begins by clearly understanding the nature of reverse logistics. Once it arrives, the product may not be exactly what they wanted, so they return it.

In some organizations, in fact, it is actually viewed as an embarrassment. Going back to the Sears and JCPenney examples, a company can turn returns into a strength that improves its relationship with consumers.

That also applies to reverse logistics. Similarly, firms need to make disposition decisions fast. Finally, there are the financial drivers that come into play.

This meant that their stores were likely to attract a long-term consumer because the risk associated with shopping there was reduced. In many companies, reverse logistics still is not considered very important—though as we said this is changing.

The model designates eight specific return points: In other words, what important capabilities are required at each step? The longer it continues to stay in the system, the more its value is likely to decline. Without the veins to carry away waste products, cells would cease to function, literally drowning in their own waste.

The agents can often walk consumers through setup and early usage issues, in effect, talking them out of returning the computers. When supply chain professionals consider reverse logistics, they will reap not only the direct rewards of rationalizing return product flow, but also the corollary benefit of optimizing the business process.

As part of this process, the company should develop procedures for analyzing return rates and tracing the returns back to the root causes.

This metric tracks the percentage of product in the reverse logistics stream that is recycled in an appropriate manner. Yet this has not always been the case. If you expect zero product returns in your supply chain, you are living in dreamland.

Second, the product is not all in new condition. Every system needs to have a means to rid itself of excess or unwanted materials. Recalls require more upfront planning than most other return types.

What percentage of product that moves to the reverse logistics system is reclaimed and resold? In short, secondary markets have become a significant portion of domestic economic activity in the United States. Amount of product reclaimed and resold:Managing Supply Chains: A Logistics Approach.

[C. A LOGISTICS APPROACH, 9E, International Edition refined its focus on the supply chain approach by blending logistics theory with practical applications.

Closing the Supply Chain Loop: Reverse Logistics and the SCOR Model

From The Community Operations - Producing Goods and Services. Managing Reverse Flows in the Supply Chain.

Strategic 5/5(1). Reverse logistic process control measures for the pharmaceutical industry supply chain Article in International Journal of Productivity and Performance Management 58(2) · January Reverse Supply Chain: Completing the Supply Chain Loop • Cognizant Insights Executive Summary Reverse logistics practices have been in existence for a long time, especially in the automotive industry, where manufacturers try • Product returns and management of their deposition.

This study investigates the reverse logistics network design problem, including collection/inspection, recovery and disposal centers that a mixed integer linear programming model is considered. In Reverse logistics network design: a water flow-like algorithm approach | SpringerLink.

Logistics Strategy: Modeling "Logistics Flows" customer service related flows (such as spare parts); and reverse logistics flows (product returns, recyclable containers, etc.). for decisions about whether to deploy common or differentiated supply chain applications across different logistics flows (for example, warehouse management.

Reverse logistics in the pharmaceuticals industry: A systemic analysis Article (PDF Available) in The International Journal of Logistics Management 25(2) · .

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The application of logistic approach to the management of reverse flows
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