The document provides a comparative analysis of the reverse logistics processes of Woolworths and Coles supermarkets in Australia. It outlines their reverse logistics processes which include collection and disposal of waste, returning goods to suppliers or warehouses, and backhauling to minimize transportation costs and environmental impact. Both companies work with partners for crate and pallet management. Woolworths and Coles also have sustainability strategies focused on reducing waste, emissions, and water usage. They donate surplus food to food banks and implement best practices like efficient stock management and recycling programs.

1. A COMPARATIVE
ANALYSIS ON THE
REVERSE LOGISTICS IN
WOOLWORTHS AND
COLES
Group 1
Bhargavi Jannu
Divya Susan Jacob
Karan Badami
Shardul Singh

2. OBJECTIVES
Understand the
reverse logistics
processes and
practices
Compare the logistics
practices carried out
at Woolworths and
Coles supermarkets
Analyze the reverse
logistics and supply
chain processes of
each organization
2

3. WHY REVERSE LOGISTICS?
Backflow of the supply chain management
with the purpose of managing returns of
specific products and their waste management
Regulates smooth flow of the operations
associated with planning and development
Sustainability regulations and stringent
market restrictions prompt the need for a
reverse logistics process.
Helps with product traceability
3

4. REVERSE LOGISTICS
PROCESS
4
Vahabzadeh, A., & Yusuff, R. (2014, July 15). Greening Your Reverse Logistic. Retrieved april 2, 2015,
from binus: http://ie.binus.ac.id/2014/07/15/greening-your-reverse-logistic/

5. REVERSE LOGISTICS
PROCESS CONT...
Gatekeeping
•Product be allowed to enter
the reverse flow?
Return Material
Allowance
•Credit customer, and fill out
return material allowance
Receiving and
Inspection
•Transport
•Consolidation
•Inspection of returned
products
Processing
•Confirm reason for return
•Confirm distribution batch
number
Options of Disposition
• Landfill
• Incineration
• Recondition
• Recycle
• Resale
Transport
•Consolidation and transport
•Dispatch
5

6. REVERSE LOGISTICS
FEATURES
Return Procedures
•Product
inspection and
quality control
•Control of
products storage
and inventory
Transport
•Well-defined
modes and
vehicles
•Pre-defined
frequency and
routes for
collection
•Control over
transport cost of
returned products
Storage and
Resources
• Locations
dedicated to
product returns
•Control over
storage costs of
returned products
•Information
systems
dedicated to
product returns
•Resources like
workforce and
cargo handling
equipment
Revaluation
•Provides
regaining of value
•Known costs and
revenues
•Existence of
secondary market
•Provides
corporate image
improvement
6

7. REVERSE LOGISTICS –
CRITICAL FACTORS FOR
PERFORMANCE
The existence of good entry controls
Standardization and mapping of processes
Reduction of cycle time
Implementation of information systems
Planning of the logistics network
The collaborative relationship between
customers and suppliers 7

8. KEY PERFORMANCE
MEASURES
Strong customer relations
leading to customer satisfaction and loyalty
Cost control
Direct or indirect
Efficient inventory management system
Increased profitability of the company
Reduction of organisational waste and
improved disposal techniques
Implementing green initiatives and following
environment regulations
8

9. ADVANTAGES OF REVERSE
LOGISTICS
Permits to reduce overall cost for the firm by
sending unsold goods back to the supplier
Retains productivity and growth by increase in
product lifecycle
Reduces administrative, maintenance and
repair cost
Helps retaining customers which enhances
customer loyalty
Reduces waste of raw materials and
manpower by extracting value from returned
product
9

10. REVERSE LOGISTICS -
BENEFITS OF USING
TECHNOLOGY
Cost Efficiency
Reduction in
Human Errors
Easier Audits
Improved
Public Image
10

11. BARRIERS FOR
IMPLEMENTING
REVERSE LOGISTICS
Management
• Competitive
issues
• Company
policies
• Lack of
resource skills
• Not a priority
• Ignorance
• Ineffective
strategic
planning
Financial
• Insufficient
Funding
• Preferential
tax policies
Policy
• Legal barriers
• Legally not
mandatory
• Lack of
Customer
awareness
Infrastructure
• Lack of
appropriate
standards or
systems
• Lack of
technology
• Forecasting
not up to
mark
11

12. REVERSE LOGISTICS
12
In Woolworths, reverse logistics can
be of two main types:
• Collection of the waste and
disposing them of sustainably or
returning of certain goods back to
the supplier or their warehouse
e.g. Pallets, Cardboard boxes,
Defective products part
• Utilizing the empty trucks to bring
back goods from a nearby supplier
into order to minimize time and
efficiency and also to reduce the
impact on environment
• Coles Collect provides a transport
solution to suppliers
• Suppliers will receive more
information and be able to address
problems with products, particularly
in terms of packaging.
• Efficiency through improved
planning, vehicle utilization and
capacity management of loads
• Joint project with CHEP for improved
pallet management system

13. POLICIES
13
Based on major factors like
• Time independent
• Physical space requirement
• Value and cost of the stock
• Government rules
• Sustainability
• No defined policies
• Space management and
damaged products are
removed from inventory as
early as possible
• Primary objective is to reduce
cost and waste reduction by
keeping it in minimum levels

14. STRATEGY & SUSTAINABILITY
14
Sustainability Strategy 2007-2015,
titled "Doing the right thing
ZERO food waste in the general waste
stream by 2015
• 40% reduction in carbon emissions
on project growth levels by 2015
• 25% Minimum reduction in carbon
emissions per square meter for all
new stores
• At Least 200 Million Liters of water
to be saved each year.
• 3.4 Million re-useable crates to
replace single-use waxed boxes.
• Energy efficient supermarket
• Introduced recyclable Plantic eco
Plastic trays for packaging their
meat products. These innovative
trays help in reducing food
packaging waste
• Improved their recycling rate to 68
percent thus decreasing the waste
going to landfill by 12.5 percent
• Recycling organic waste and
improved recycling of plastic,
shrink wrap, waxed cardboard
boxes

15. BEST PRACTICES FOLLOWED
15
• Reduced RL cost by 40%
($250K)
• Customer awareness initiative
helped reduce food waste
• Efficient stock management by
integrating ordering system
• Recycle 150K tonnes of
cardboard and 5K tonnes of
plastic and was able to export
waste to China
• Implemented pallet
management system
improving 50% efficiency and
cycle time and return 5 million
pallets to CHEP every year
• Suppliers follow Shelf Friendly
Packaging (SFP) to improve
faster and efficient restocking
of product

16. PERISHABLES
16
• Working with suppliers
• Adopt in-store practices to
minimise surplus
• Educate consumers about food
waste reduction
• Donate surplus edible to
Foodbank (@1,354 tonnes
grocery)
• Adopt in-store practices to
minimise surplus
• Donate surplus edible to
SecondBite
• Not fit for humans is donated as
animal feed
• Unedible food converted to
organic compost

17. NON-PERISHABLES
17
• If a damage can be fixed, its
sent back to the DC or else
donated to the charities
• If package is damaged, company
donates and are not available
for resale
• Cardboards and plastics were
recycled at their DC’s
• Most of the damaged products
are sent back to suppliers for
repair
• If not suitable for resale its
donated to charities and also to
a recycle partner RED group to
turn waste into outdoor
furniture for schools
• If any toxic substances are
present they are destroyed or
send to landfills

18. TRANSPORT &
PARTNERSHIPS
18
• Woolworths Primary freight is
the main transport system
operating between their
distribution center and stores
• Their partnerships with crates
and pallets suppliers like CHEP
• Along with 3PL companies like
Toll Logistics Company
• Coles collect is the transport
system that operates between
Coles and its suppliers
• Crates and pallets suppliers
are CHEP
• Their main logistics partner is
Linfox and they along have tie
ups with Toll logistics
Company as well

19. RECOMMENDATIONS
Implement a process-to-process cost reduction
strategy throughout the supply chain.
Improve the inventory management system and
maintain appropriate levels of inventory within the
organizations.
Reduce the shelf-time by reducing the extra time
allotted to defective and expired products. This, in
turn, will lead to storing fresh products.
With the association of a 3rd party logistics
provider, the organizations would be able to
manage their inventory and improve transportation
and hence, enhance the efficiency of the supply
chain. 19

20. THANK YOU
20