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ANUSHA VADDIREDDY 1627561
ANUSUYA NANDI 1627538
ASHWIN KUMAR 1627504
SANDEEP RAJA Y 1627533
SIDHARTH S 1627528
ADAIKAPPAN L 1627502
REVERSE LOGISTICS
INTRODUCTION
“The process of planning, implementing, and
controlling the efficient, cost effective flow of goods
and related information from the point of
consumption to the point of origin for the purpose of
recapturing value or proper disposal”
REVERSE LOGISTICS FLOW
ACTIVITIES OF REVERSE LOGISTICS
Return to supplier
Resell
Salvage of outdated process
Recondition
Remanufacture
Reclaim material
Recycle
TYPES OF REVERSE LOGISTICS
Movement of capital items and equipment to the
next emergency response.
Removal of containers and packaging from response
area.
Destruction of spoiled food commodities and out of
date pharmaceuticals.
Return of rejected goods to the suppliers.
Movement of excess or over-supplied goods to other
programs or organizations.
OCCURRENCE OF RL
Downscaling of activities
Closure of programs or handover of emergency
response programs;
Product recalls (goods re-called by the
manufacturer);
Rejected goods returned to the vendor
Back-trucking of packaging materials for re-use or
disposal
FORWARD vs. REVERSE LOGISTICS
CHALLENGES AND BARRIERS
1. Meeting consumer needs:
Customers want the best price and completely flexible and hassle-free
returns policies.
2. Volume management:
Retail returns are around $60B+ annually, and total returns across the
U.S. high-tech service industry are forecast at $818B+ through 2008. Especially
during peak seasons, most of these returns are time-sensitive to process and
restock for resale.
3. Management of costs:
Expense management can represent up to 7% to 8% of the cost of goods.
The process is labour intensive with very little automation.
4. Data management:
Having accurate data is important, but it is very difficult to obtain and
manage relevant information. An organization should understand the data source,
know how to analyse it and should use third-party experts if possible.
5. Disposition of product:
Knowing the best location to handle, destroy, salvage and even where to
donate products is critical. So is the ability to handle a supplier return, whether it
is defective or working with overstock balancing.
6. Regulatory compliance:
Organizations require complete understanding of waste management
laws, regulations and processes, including the company’s corporate social
responsibility.
7. Partnership throughout the product lifecycle:
Having the right partner throughout the product lifecycle is key. Creating
a strong and cohesive supplier agreement, jointly determining the best approach,
cost sharing and having a positive relationship will help improve the bottom line
for everyone
8. Inadequate information and technological systems
REVERSE LOGISTICS IN DIFFERENT
INDUSTRIES
Automotive: Eg Recalls over defective parts.
FMCG: Eg: Improper handling/Packaging and
Expiry.
Apparel: Eg Returns from customers and season
change
Electronics: Eg: End of lease or Repairs.
AUTOMOTIVE RECALLS
The auto industry witnessed a record number
of recalls in 2016 reaching 52,985,779 in total.
Which is approximately equal to 53 million.
ELECTRONIC RETURNS
FMCG RETURNS
 Returns due to improper handling and packaging : weight short ,
seal short
 Returns due to expiry.
 Companies try to reduce the waste as much as they can in every
stage possible by offering discounts.
 If the products still doesn’t get sold they will be sent to other areas
where the sale is ideally better.
 Even if the products doesn’t get sold they bring back the products to
their manufacturing plants and try to re use the products and
packaging is recycled.
 While bringing the stocks or realigning the stocks consolidation
happens at every stage to reduce the costs and increase the
efficiency.
 Ideally vehicles which deliver the stock to the customers , handle the
returns as well.
APPAREL RETURNS
Returns from customers:
 Replacement
 Exchange
 Money back
Season Change:
Starts with the end of season sales
Sent back to the ware house
Stored till the next season
Sold again in the next season
If the stock still doesn’t sold , the stock goes back to the
warehouse and the labels are removed and sold to local
sellers for discounts.
EXAMPLES OF REVERSE
LOGISTICS
APPLE
The process started with entering data about the problem
(battery failure) on an Apple web site, along with the unit’s
series number.
Within about 12 hours, an email was received saying the
product was still under warranty and approving the return.
Within 2 days, Apple delivered via express parcel service a box
for shipping the product back to one of its service centers.
Instructions on the label about how to open and the address of
the owner and foam packaging was done.
The label contained the RMA number and all the other
information Apple needed to track the return when it was
received.
UPS
Better manage and re-integrate returned materials for
streamlined practices, reduced waste, and continuing
profits from existing products.
Advanced technology and Web-enabled return labels
extend your supply chain visibility and let you ensure
that returned parts arrive at their designated locations.
With UPS Returns Plus, drivers go straight to customers'
doors to collect return items, giving added insight into
inbound returns while providing customers with more
personal service.
UPS Mail Innovations®
Returns is a contractual postal
returns solution that offers convenience and efficiency
for customers.
UPS offers a portfolio of returns solutions that can
help you improve customer satisfaction while getting
a tighter grip on inventory.
Optoro, a reverse logistics startup to better manage
both the transportation and disposition of returns
and excess inventory this post-holiday season.
Optoro applies algorithm-based analytics to
determine where the retailer will best recoup its
losses on unwanted items.
H & M
H&M accepts used clothing at all of their stores
worldwide.
The clothes can be any condition or brand, and H&M will
use the clothing they’ve collected to create an all-recycled
clothing line.
This type of reverse logistics chain allows all types of
consumers to get involved with the brand, even if they
didn’t purchase their garment from H&M.
Challenges include for example, the fact that H & M
currently cannot make products with more than 20%
recycled fabric from collected garments without a loss in
quality and durability.
LOGINEXT
LogiNext Reverse™ is the leading-edge reverse delivery
management software which caters to the reverse leg of
logistics
Especially in e-commerce logistics, where shipments are
picked from customer locations and transported to the
hub for aggregation.
LogiNext’s reverse delivery management software not
only provides automated optimization for capacity and
route planning in first mile
Covers all scenarios for return-to-merchant (RTM) and
return-to-origin (RTO) cases.
Clustering of reverse pick-ups with last mile deliveries
helps in a high degree of resource optimization.
World’s most accurate and diverse geo-coding engine
with multiple map-data and geocoding partners, that
works across 140+ countries.
Mobile POS using Bluetooth based barcode reader and
thermal printer.
Visually compare planned route against the actual route
followed on a map interface and easily identify the
bottlenecks.
Heat map analysis of customer locations and delivery
vehicle density.
Plans and optimizes routes and capacity for all
distribution models, including Multiple Pick Up-Single
Drop and Multiple Pick Up-Multiple Drop Algorithms.
YRC REVERSE LOGISTICS
From multi-modal transportation, established ties with
big retailers and our North American-wide network to
the best return shipping professionals in the industry.
With YRC Freight, there is a reverse shipping system that
keeps the customers happy, costs down across all
departments, environmental footprint light and options
open.
Manage reporting, shipment history and document
searches, plus automated reports with the click of a
button.
Better tracking by use of Electronic data interchange and
Radio frequency identification.
CONCLUSION
Retailers are obliged to accept returns, though the cost of
doing so can reach up to $260 billion dollars.
The innovative strategies and their implementation in
reverse logistics will give a competitive advantage to the
businesses.
They would be able to manage their reverse supply
chains effectively leading to improved profitability,
customer satisfaction, and improved compliance of
environmental legislation.
 This is leading to reduced raw material costs,
operational costs, packing costs, reduced landfill and
Compliance costs.
Reverse logistics group8

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Reverse logistics group8

  • 1. ANUSHA VADDIREDDY 1627561 ANUSUYA NANDI 1627538 ASHWIN KUMAR 1627504 SANDEEP RAJA Y 1627533 SIDHARTH S 1627528 ADAIKAPPAN L 1627502 REVERSE LOGISTICS
  • 2. INTRODUCTION “The process of planning, implementing, and controlling the efficient, cost effective flow of goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal”
  • 4.
  • 5. ACTIVITIES OF REVERSE LOGISTICS Return to supplier Resell Salvage of outdated process Recondition Remanufacture Reclaim material Recycle
  • 6. TYPES OF REVERSE LOGISTICS Movement of capital items and equipment to the next emergency response. Removal of containers and packaging from response area. Destruction of spoiled food commodities and out of date pharmaceuticals. Return of rejected goods to the suppliers. Movement of excess or over-supplied goods to other programs or organizations.
  • 7. OCCURRENCE OF RL Downscaling of activities Closure of programs or handover of emergency response programs; Product recalls (goods re-called by the manufacturer); Rejected goods returned to the vendor Back-trucking of packaging materials for re-use or disposal
  • 9.
  • 10. CHALLENGES AND BARRIERS 1. Meeting consumer needs: Customers want the best price and completely flexible and hassle-free returns policies. 2. Volume management: Retail returns are around $60B+ annually, and total returns across the U.S. high-tech service industry are forecast at $818B+ through 2008. Especially during peak seasons, most of these returns are time-sensitive to process and restock for resale. 3. Management of costs: Expense management can represent up to 7% to 8% of the cost of goods. The process is labour intensive with very little automation. 4. Data management: Having accurate data is important, but it is very difficult to obtain and manage relevant information. An organization should understand the data source, know how to analyse it and should use third-party experts if possible.
  • 11. 5. Disposition of product: Knowing the best location to handle, destroy, salvage and even where to donate products is critical. So is the ability to handle a supplier return, whether it is defective or working with overstock balancing. 6. Regulatory compliance: Organizations require complete understanding of waste management laws, regulations and processes, including the company’s corporate social responsibility. 7. Partnership throughout the product lifecycle: Having the right partner throughout the product lifecycle is key. Creating a strong and cohesive supplier agreement, jointly determining the best approach, cost sharing and having a positive relationship will help improve the bottom line for everyone 8. Inadequate information and technological systems
  • 12. REVERSE LOGISTICS IN DIFFERENT INDUSTRIES Automotive: Eg Recalls over defective parts. FMCG: Eg: Improper handling/Packaging and Expiry. Apparel: Eg Returns from customers and season change Electronics: Eg: End of lease or Repairs.
  • 13. AUTOMOTIVE RECALLS The auto industry witnessed a record number of recalls in 2016 reaching 52,985,779 in total. Which is approximately equal to 53 million.
  • 15. FMCG RETURNS  Returns due to improper handling and packaging : weight short , seal short  Returns due to expiry.  Companies try to reduce the waste as much as they can in every stage possible by offering discounts.  If the products still doesn’t get sold they will be sent to other areas where the sale is ideally better.  Even if the products doesn’t get sold they bring back the products to their manufacturing plants and try to re use the products and packaging is recycled.  While bringing the stocks or realigning the stocks consolidation happens at every stage to reduce the costs and increase the efficiency.  Ideally vehicles which deliver the stock to the customers , handle the returns as well.
  • 16.
  • 17. APPAREL RETURNS Returns from customers:  Replacement  Exchange  Money back Season Change: Starts with the end of season sales Sent back to the ware house Stored till the next season Sold again in the next season If the stock still doesn’t sold , the stock goes back to the warehouse and the labels are removed and sold to local sellers for discounts.
  • 19. APPLE The process started with entering data about the problem (battery failure) on an Apple web site, along with the unit’s series number. Within about 12 hours, an email was received saying the product was still under warranty and approving the return. Within 2 days, Apple delivered via express parcel service a box for shipping the product back to one of its service centers. Instructions on the label about how to open and the address of the owner and foam packaging was done. The label contained the RMA number and all the other information Apple needed to track the return when it was received.
  • 20. UPS Better manage and re-integrate returned materials for streamlined practices, reduced waste, and continuing profits from existing products. Advanced technology and Web-enabled return labels extend your supply chain visibility and let you ensure that returned parts arrive at their designated locations. With UPS Returns Plus, drivers go straight to customers' doors to collect return items, giving added insight into inbound returns while providing customers with more personal service. UPS Mail Innovations® Returns is a contractual postal returns solution that offers convenience and efficiency for customers.
  • 21. UPS offers a portfolio of returns solutions that can help you improve customer satisfaction while getting a tighter grip on inventory. Optoro, a reverse logistics startup to better manage both the transportation and disposition of returns and excess inventory this post-holiday season. Optoro applies algorithm-based analytics to determine where the retailer will best recoup its losses on unwanted items.
  • 22. H & M H&M accepts used clothing at all of their stores worldwide. The clothes can be any condition or brand, and H&M will use the clothing they’ve collected to create an all-recycled clothing line. This type of reverse logistics chain allows all types of consumers to get involved with the brand, even if they didn’t purchase their garment from H&M. Challenges include for example, the fact that H & M currently cannot make products with more than 20% recycled fabric from collected garments without a loss in quality and durability.
  • 23. LOGINEXT LogiNext Reverse™ is the leading-edge reverse delivery management software which caters to the reverse leg of logistics Especially in e-commerce logistics, where shipments are picked from customer locations and transported to the hub for aggregation. LogiNext’s reverse delivery management software not only provides automated optimization for capacity and route planning in first mile Covers all scenarios for return-to-merchant (RTM) and return-to-origin (RTO) cases. Clustering of reverse pick-ups with last mile deliveries helps in a high degree of resource optimization.
  • 24. World’s most accurate and diverse geo-coding engine with multiple map-data and geocoding partners, that works across 140+ countries. Mobile POS using Bluetooth based barcode reader and thermal printer. Visually compare planned route against the actual route followed on a map interface and easily identify the bottlenecks. Heat map analysis of customer locations and delivery vehicle density. Plans and optimizes routes and capacity for all distribution models, including Multiple Pick Up-Single Drop and Multiple Pick Up-Multiple Drop Algorithms.
  • 25. YRC REVERSE LOGISTICS From multi-modal transportation, established ties with big retailers and our North American-wide network to the best return shipping professionals in the industry. With YRC Freight, there is a reverse shipping system that keeps the customers happy, costs down across all departments, environmental footprint light and options open. Manage reporting, shipment history and document searches, plus automated reports with the click of a button. Better tracking by use of Electronic data interchange and Radio frequency identification.
  • 26. CONCLUSION Retailers are obliged to accept returns, though the cost of doing so can reach up to $260 billion dollars. The innovative strategies and their implementation in reverse logistics will give a competitive advantage to the businesses. They would be able to manage their reverse supply chains effectively leading to improved profitability, customer satisfaction, and improved compliance of environmental legislation.  This is leading to reduced raw material costs, operational costs, packing costs, reduced landfill and Compliance costs.