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Reverse logistics
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- 2. REVERSE LOGISTICS… Aprocess associated with managing products beyond manufacturing and final sales. the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. Eg. Repair, warranty recovery, redistribution, value recovery, end-of-life recycling, etc.
- 3. LITERATURE REVIEW Nokia India: BatteryRecall Logistics Monali Malvankar The case talks about manufacturing process of Nokia, logistics challenges in India, and the reverse shipment process of Nokia . Reverse Logistics and the Creation of Reverse Flows for the Mobile Phone Industry Laurence Paquette This paper studies the supply chain management field of reverse logistics, describes this business discipline and its different challenges, and analyzes the reverse logistics characteristics of the mobile phone industry Reverse logistics in the electronic industry of China: a case study Kwok Hung Lau, Yiming Wang The paper presents a systematic analysis of the external and the internal factors affecting reverse logistics implementation in developing countries like China. Reverse Logistics Process Reengineering: Improving Customer Service Quality Mohammad M. Amini, Donna Retzlaff–Roberts The paper provides an overview of the various types of reverse logistics and describes a reverse logistics reengineering study for a major direct marketer
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- 7. REVERSE LOGISTICS ACTIVITIES Handling of returned merchandise Damage Seasonal inventory Resell via outlet Salvage of outdated products Recycling and reuse Material reuse Remanufacturing / refurbishing Hazardous materials disposition
- 9. FORWARD vs. REVERSELOGISTICS FORWARD LOGISTICS REVERSE LOGISTICS Quite easy forecasting Not predictable forecasting Distribution from one point to many Distribution from many points to one Uniform product quality and packaging Different product quality and different packaging Specified destinations and routes Not specified destinations and routes Uniform pricing Pricing depends on many factors Speed importance Speed is not necessary Clear costs of distribution Costs of distribution less visible Consistent inventory management Not consistent inventory management Easy negotiations in supply chain Complicated negotiations in supply chain
- 10. Forward Logistics Flow ReverseLogistics Flow
- 11. NEED/BENEFITS FOR REVERSELOGISTICS Regulations Recycling & Environmental consciousness Improved Inventory Management Profit Maximization Customer Relationship Management
- 12. REVERSE LOGISTICS CHALLENGES Retailer – Manufacturer Conflict Inefficiencies that lengthen the time for processing returns: Condition of the item Value of the item Timeliness of response They have to develop a working partnership to derive mutual benefit. Problem Return Symptoms Lack of information about the process. If you aren’t measuring it, you aren’t managing it.
- 13. REVERSE LOGISTICS CHALLENGES Cause and Effect Poor data collection leads to uncertainty about return causes. Improving the return process decreases costs. Being able to see defective products and to track return issues. Reactive Response Government regulation or pressure from environmental agencies . It has not been possible to justify a large investment in improving reverse logistics systems and capabilities.
- 14. EXAMPLES has full-service reverse supplychain business segment comprising 3 brands: • ReSolve - global relog services brand; • Intechra - leading source for IT asset disposition services; Arrow Electronics Inc. “Kuch Bhi lao Kuch Bhi Pao” (Bring anything, take away anything) exchange offer is a reverse logistics system Big Bazaar’s CISCO
- 15. EXAMPLES (contd.) Maruti TrueValue dealers helping the customers in resale of their used cars - part of reverse logistics system. Maruti Suzuki India Limited a very efficient reverse logistics system developed the Petroleum companies - supply cooking gas to consumers by refilling of the Gas cylinders Indane (IOCL) , HP Gas (HPCL) A Gurgaon-based reverse logistics company • Clientele includes: Samsung, LG, Panasonic, Haier, Electrolux, Black & Decker, Videocon, Onida, Panasonic, GreenDust Pvt Ltd.
- 16. CONCLUSIONS Reverse logistics isflow of surplus or unwanted materials, goods or equipment back to firm, through its logistics chain for reuse, recycle or disposal. Managing Reverse Logistics increases company’s financial performance. Also, it increases customer satisfaction, helps in branding the corporate image to be green.
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