Reverse logistics is the process of moving goods from the point of consumption back to the point of origin for recapturing value or proper disposal. It helps companies increase competitiveness by reducing costs, improving customer service, and increasing revenues. Successful reverse logistics requires collection, sorting, and disposition of returned products through reuse, repair, remanufacturing, or disposal. It allows companies to demonstrate corporate responsibility and environmental compliance while differentiating themselves in the marketplace.

1. REVERSE LOGISTICS AND COMPETITIVENESS: A
BRIEF
REVIEWOF THIS RELATIONSHIP
-SUDIP MITRA PGDMABPM 53

2. REVERSE LOGISTIC
Is the process of moving goods from the point of consumption to
the point of origin for the purpose of recapturing value or proper
disposal.

3. INTRODUCTION
 Presently logistic seen by companies as a way to increase their competitiveness.
 In the past treated just as cost drivers.
 Reverse Logistic is the return of products into the production process.
 It is for recycling or for reintegration, considering both post-consumerlogistics and
aftermarket logistics.
 The growing concerns about the environment, coupled with the volume and variety of
products manufactured by companies.

4. 1. Reuse
2. Product update,
3. Material recovery
4. Waste management

6. Successful ReverseLogistics Projects
Example of complete reverse
logistic: Estee Lauder
Investment of 1.3 millionto buildits
propietaryreverse logistics system of
scanners, business intelligencetolos
linked to an Oracle database
The companyhas apparently
recovered its investment in the
first year through reducing labor
and other costs.
When companies decide to
embark on a reverse logistics
Project they can leverage
knowledge, tolos and processes
from other successful projects
Such as Estee Lauder s, to prevent
them form reinventing the Wheel.
Can be made to:
-Reduce Cost
-Improve customer service and
-Increase revenues

7. ReturnReasons
• when the product is not what is expected
• when the product does not arrive in a defined period
Customer NOT Satisfied
• The consumer assumes that the product is damaged but really
that was installed improperly due to lack of instructions.Installationor Usage Problems
• when the product does not work properly
• when the product has physical damage
• - when the product is repaired by warranty
Warranty Claims

8. ReturnReasons
•Incompleteorders
•Misguided amounts
•Prematuredelivery and duplicate
Faulty Order Processing
•Excessivequantities of products
•New orders atthe end of trimesterRetail Overstock
•Productlife finished
•New producttrends
•Old products areeliminated
End of product life cycle or
product replacement
• Installation by the manufacturer
• Standards of product safety
• Corrective measures
Manufacture recall programs

9. OtherComplications
Environmental
laws.
50% of the
goods sold
are returned.
Obsolence high,
product value
fall 12% per
month.
Reverse logistic
not adds value
to the product
and generates
financial
pressure.
The Green Factor E-Commerce Shorter Product Life Cycles Complexand underdeveloped
area

10. Attackingthe returnschallenge
(keystepsin the processof return)
Local
Screening
Collection Sorting Disposition
• Is doneat the point of
collection of the
returned products.
• To avoid unnecessary
costs of transportare
due to pick up the
products at the point
wherethey were
delivered. (scanner)
• Example: Nintendo
• There are many different
ways to collect the
products that are destined
to enter the reverse supply
chain
• The complexity of the
process and the multiple
parties involved generates
differents systems to
returns
• Example: Ford
• Some large retailers have
been using centralized
return centers (CRCs
dedicated to handle their
entire reverse logistics
operations.When a
company use that have an
optimization arise from a
whole range of areas
• Example: GM
Sell as-it
Repair or
Reuse
Dispose

11. Reverse Logistics - the driving
forces
Many companies use reverse logistics in-house or through outsourced
specialized companies ……..WHY???
 To recapture economic value,
 To increase competitiveness,
 To demonstrate corporate responsibility
 To clean distribution channels through inventory management
 To demonstrate compliance with legislation.

12. Reverse Logistics – the
restrictive forces
 The life cycle of a product does not end when it is discarded.
 The lack of involvement and commitmentof the entire supply chain caused by the
mismatch of objectives
 The lack of complete studies to ensure and prove the efficiency of reverse logistics
processes
 Absence of clear legislation.

13. Competitiveness and Reverse
Logistics
Chaves; Martins (2005) inform that:
 Compliance with environmental demand
 Reduced costs
 Customer Loyalty
 Positive Corporate image
 Improvement in the level of service offered to the customer

14. CONCLUSION
Reverse logistics is an important tool for organizations to differentiate themselves
from their competitors.
Organizations that adopt reverse logistics have processes well structured.
For the customer this means ensuring capacity to meet their needs, generating
customer loyalty and making it difficult for competitors to imitate simple services
that are geared towards value creation and the environment.