reserve logistics formation over dealing the problem

1. A Study On Risk Involved In Reverse
Logistics
By
AYUSH SHARMA
MBA(IB)

2. Introduction
• The study’s special interest was into the field of
logistics and supply chain management.
• It assessed the impact of reverse logistics on
different cases of company over their supply
chain performance.
• Specific focus was made on challenges for reverse
logistics , and the effects or impacts that reverse
logistics over supply chain performance. On the
other hand, this discusses the background to the
study regarding to reverse logistics issues.

3. OBJECTIVES IN REVERSE LOGISTICS
1. PRODUCT LOCATION
2. PRODUCT COLLECTION SYSTEM
3. RECYCLING / DISPOSAL CENTRES
4. DOCUMENTATION SYSTEM

4. Research Questions
• How different companies face the problem of
reserve logistics?
• What effects does the current problem of
reverse logistics have on company supply
chain performance?
• What mechanisms can be drawn in order to
benefits from reverse logistics?

5. Research Approach
• The research used the descriptive approach.
• The study was based on an investigation on
basic study of company case study to know
the impact of reverse logistics on supply chain
performance and challenges reverse logistics
on companies.

6. Type of data
Secondary Data Collection
The research used secondary data. Data used for a
research project that were originally collected for
some other purpose. Secondary sources included
articles, books, journals, Newspapers, academic
surveys and the Internet. The researcher
gathered information through literature review,
from other literature authored by other writers
which are relevant to the top of study this
included journals, and books.

7. Study of Limitations
The study was limited in such a way that:
a) The study was only based on one organization
and only focused on reverse logistics.
b) The study also did not investigate further on the
benefits and impact of reverse logistics on supply
chain performance.
c) The researcher only researched on basic issues of
reverse logistics in companies.
d) The researcher also lacked of time .

8. Nokia India: Battery Recall Logistics
According to the case study of Nokia the problem
started BL-5C batteries since Nokia had initiated to
recall program to replace defective batteries in some
of its popular cell phone models, when nokia had
released its product advisory for BL-5C batteries.
Nokia efforts of replacing the affected battery with
new to its customers which involves the applying of
logistic process to solving the battery problem.

9. RESERVE LOGISTIC PROCESS BY NOKIA
CUSTOMER
DISTRIBUTORMANUFACTUERER

10. 1. LOG IN TO NOKIA WEBSITE
2. REGISTERED 15 DIGIT NO. OF AFFECTED BATTERY
3. NEW BATTERY SHIPPED TO CUSTOMER ADDRESS WITHIN 15
days
15 DIGIT NO.

11. LOGISTIC SOLUTION BY NOKIA INDIA:
ASSIGN OF OPERATION TEAM
SHIPPMENT OF AFFECTED BATTERIES TO DELHI PORT BY BLUE DART
FOR REPLACEMENT OF OLD TO NEW BATTERY THE TEAM USING PAYMENT BILL
CUSTOMER SEND THE SMS NOKIA SERVE PROVIDER WITH 15 DIGIT CODE
SHIPPMENT OF NEW BATTERY TO CUSTOMER WITHIN 15 DAYS
PROVIDING THE DELIVERY DOCUMENTATION AND VAT FOR DELIVERY TO CUSTOMER
NOKIA HEADQUARTERS IN DELHI BY AIR THEN SHIPPED BACK TO MATASUSHITA LTD

12. Samsung Note 7 Battery Explode:
According to this case study the Samsung launched the
Galaxy Note 7 . Due to some reason the Samsung to initiate a
recall in September of the first version of the Note 7 due to
faulty batteries that overheated and exploded. Samsung
estimate to recall over 2 million devices and discontinue the
product.

13. Reserve Logistics Process by Samsung :
Samsung (manufacturer ) Setting up lab for battery problem
Applying safety mode in batteries
Recall of product
Distributor of Samsung galaxy note 7
Recall of product
Retailer

14. • SAMSUNG SOLUTION TO BATTERY PROBLEM:
Samsung built a new test lab It staffed it with 700 researchers, 200,000 devices
and 30,000 batteries in an attempt to replicate the cause of fires in the phones.
The main root cause of the first manufacturer’s battery problem (Battery A) was
negative electrode deflections. The second manufacturer's product (Battery
B), suffered from abnormal ultrasonic welding burrs.
In response to this they have added up the new eight point battery safety
process.
Product Recall:
This is an emergency situation wherein the products distributed in the market are
called back to the factory because of any of the following reasons:
1.Defective products causing harm to human life
2. Products with defective design
3. Save the company image

15. True Value Market By Maruti Suzuki :
True Value Concept:
• It is an initiate of reverse logistics operations on the used cars.
• It was aimed at catering to customers who are both first-time
car buyers and those who are looking to upgrade themselves
to a passenger car in a higher segment.
• In this process used car reaches the dealer, designated
engineers would conduct standard checks of the returned
vehicle.
• The company purchased used-car is refurbished in the
authorized workshops using genuine automobile parts with
warranty period by the supplier.

16. Reverse Logistics Process of Maruti automobiles:

17. Maruti, reverse logistics operations should mainly
confined to warranty components .Maruti has taken
due attention regarding customer service and
replacement of warranty components to win the
goodwill of customers.
The three R’s of reverse logistics (Reduction, reuse and
recycle) are promoted during every stage of product
life cycle.
The amount of the vehicles that would be returned
both by warranty returns and in the true value
category is based on the sales of the vehicles.
Convenient finance options are also offered to buyers
of Maruti used cars.

18. Coco-cola Half Product Strategy
Coco cola half product strategy suggested to launched
its new form of product at lower prices to compete
with Pepsi co .
This strategy was adopted by coco cola to target the
lower segment of consumer.
In this strategy the company go for the scheme of
lower-priced smaller-sized version the gain
consumers like Consumer cant purchased 1.5 liters
bottle so that it could go 200 ml and 300 ml bottles if
they were available in the market at price of Rs 15 or
Rs 18 like Chhota coke at Rs15 .

19. Material
Parts
Manufacturer
Consumption
Sales
Product
Assembly

20. RESERVE LOGISTIC OF COCO COLA:
• Reverse logistics is integrated to their chain because
of the reusable nature of packages
• The delivery van delivers filled bottles to retailers on
route and collects the same number of empty bottles
from them for delivery to the factory.
• Reusable bottles are refilled for re-delivery to
customers for consumption.

21. Platform Marketing Benefitted From Reserve Logistics:
Logistics process of OLX:
CUSTOMER(SUPPLIER)
DISTRIBUTION (OLX)
CUSTOMER

22. OLX is one of the reverse logistics company.
It flow the business model of selling c consumer-
to-consumer (C2C) transactions, helping
connect people with companies that trade in
used goods.
It simply picked up used product to shipments
for ecommerce.
It sell second-hand items such as cars,
electronics and white goods. It will also offer
warranties for these items before shipments.

23. CONCLUSION
The conclusion is been drawn that reserve logistics basic problem that has been raised
due to dissatisfaction of customer were the good is been returned from the
consumer back to manufacturer due to some defect in the product or other different
purpose such as repair , reuse ,recycle etc .
In the above case study we have seen that every companies have different sort of
problem over their reserve logistic problem :
• Nokia and Samsung have recall their product due to battery defect in their product
which result into reserve shipment of product which cost the company with greater
loses.
• Olx which is ecommerce market company is which preferred to sell second-hand
items by buying from consumer to sell another consumer some time it causes the
default or dissatisfaction from the customer towards product.
• True value market is been followed by maruti where it repair or resale the reused
car with warranty period in their reserve logistics they resale their second used
car through better repairment service to the customer.

24. Coco cola which uses the half product method for their reserve logistic
process by selling of a 200ml bottle now costs Rs12 by remanufacturing of
used bottles back for refilling .
In my suggestion there should been operation management commission in
every company which they could run standard operating processor to
handle the reserve logistic problem by applying appropriate forecasting
method like better technologies support and change in shift part of process
of supply chain & settle a effective supply chain management.