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RIGA TECHNICAL UNIVERSITY
Faculty of Computer Science and Information Technology
Institute of Information Technology
Professor – Yuri Merkuryev
Associate Professor – Jelena Pecerska
LSCM European Dimension
Reverse Logistics Performance in Indian E-Commerce Industry
Presenter:
Jitesh Shashtri (181ADM120)
Topics
Covered
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 2
Logistics in India (Facts and Figures)
Reverse Logistics – Terminologies and Definition
Performance of Reverse Logistics in India
E-Commerce Industry and Problems in Reverse Logistics
Professional Bodies in Indian Logistics Sector
Infrastructure Investments/Future of Logistics in India
Conclusion
Logistics in India (Facts and Figures)
3LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Source: NITI Aayog 2018 Report
Logistics in India (LPI & Size)
4LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Logistics in India (Shortfall & Employment)
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 5
Source: NITI Aayog, Economic Survey
Employment – In Millions
Logistics in India – Contributions
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 6
Source: NITI Aayog, Economic Survey
Reverse Logistics -
Definition
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
7
“T Hierry” tackle reverse logistics under the expression product recovery
management as being: the management of all used or discarded products,
components and materials that fall under the responsibility of a
manufacturing company. The objective of product recovery management is
to recover as much of the economic (and ecological) value as reasonably
possible, thereby reducing the ultimate quantities of waste.
“Council of Logistics Management” defines Reverse Logistics as: 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.
“F Leischmann” has analysed various definitions of reverse logistics in order
to define it as: the process of planning, implementing, and controlling the
efficient, effective inbound flow and storage of secondary goods and
related information opposite to the traditional supply chain direction for
the purpose of recovering value or proper disposal.
Source: Strategic issues in product recovery management & Quantitative Models for Reverse Logistics
by T Hierry
Reverse
Logistics
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Source: Developing a reverse logistics competency: The influence of collaboration and information
technology by Morgan T.R
Performance – Reverse Logistics (India)
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 9
0
10
20
30
40
50
60
2019 2020
$BILLIONS
REVERSE LOGISTICS MARKET SIZE - INDIA
Problems/E-Commerce and Reverse Logistics
The Cost of Returns
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 10
Image Source : Descartes Systems Group
Pain Points/E-Commerce and Reverse Logistics –
Moving Information and Product
11
Information Management:
 Multiple marketplaces and Vendors
 Multiple Carrier Platforms
Need to consolidate multiple carriers into a stand-alone
web-based platform and manage orders from multiple
marketplaces within a single gateway.
Product Flow:
 Sorting and Disposition Management
Customer driven
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Image Source : Descartes Systems Group
CILT – The Chartered Institute of Logistics and
Transport (India)
• CILT is an international logistics body founded in UK in 1921,
although the Indian chapter of CILT was formed in 1987 and had
more than 3500 practising professionals including more than 35
corporate organizations as its members.
• It was established to promote knowledge in the development of
logistics sciences and transport further providing a source of
authoritative views for communication to the ruling government,
leading industry associations and the business community. CILT
currently has active membership of more than 35000 practising
logisticians.
• Special training programme on Reverse Logistics for E-Commerce
Source: http://www.ciltindia.in/training-courses
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 12
Infrastructure Investments/Future of Logistics - India
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 13
Infrastructure Investments/Future of Logistics - India
14
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Infrastructure Investments/Future of Logistics - India
15
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Conclusion and Recommendations
If applied properly, then reverse logistics can reduce the processing cost of up to 25%,
increase productivity by 10%, increase net profit by 2 - 5%, and improve customer
satisfaction with increased retention.
With changing times, it becomes important for logistics players in India to invest in adopting
and upgrading technologies and reinventing processes to make them smarter and efficient.
Not just Block Chain technologies, but the rise of robotics and artificial intelligence is also
redefining the logistics industry in India as it minimizes human intervention, enhances quality
and reduces cost.
Businesses need to know that carrier systems, accounting solutions, ecommerce platforms
and the warehouse must work in lock-step to secure a seamless customer experience and
safeguard the bottom line.
16
LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
Reverse logistics performance in Indian E-commerce industry

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Reverse logistics performance in Indian E-commerce industry

  • 1. RIGA TECHNICAL UNIVERSITY Faculty of Computer Science and Information Technology Institute of Information Technology Professor – Yuri Merkuryev Associate Professor – Jelena Pecerska LSCM European Dimension Reverse Logistics Performance in Indian E-Commerce Industry Presenter: Jitesh Shashtri (181ADM120)
  • 2. Topics Covered LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 2 Logistics in India (Facts and Figures) Reverse Logistics – Terminologies and Definition Performance of Reverse Logistics in India E-Commerce Industry and Problems in Reverse Logistics Professional Bodies in Indian Logistics Sector Infrastructure Investments/Future of Logistics in India Conclusion
  • 3. Logistics in India (Facts and Figures) 3LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri Source: NITI Aayog 2018 Report
  • 4. Logistics in India (LPI & Size) 4LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
  • 5. Logistics in India (Shortfall & Employment) LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 5 Source: NITI Aayog, Economic Survey Employment – In Millions
  • 6. Logistics in India – Contributions LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 6 Source: NITI Aayog, Economic Survey
  • 7. Reverse Logistics - Definition LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 7 “T Hierry” tackle reverse logistics under the expression product recovery management as being: the management of all used or discarded products, components and materials that fall under the responsibility of a manufacturing company. The objective of product recovery management is to recover as much of the economic (and ecological) value as reasonably possible, thereby reducing the ultimate quantities of waste. “Council of Logistics Management” defines Reverse Logistics as: 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. “F Leischmann” has analysed various definitions of reverse logistics in order to define it as: the process of planning, implementing, and controlling the efficient, effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal. Source: Strategic issues in product recovery management & Quantitative Models for Reverse Logistics by T Hierry
  • 8. Reverse Logistics LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri Source: Developing a reverse logistics competency: The influence of collaboration and information technology by Morgan T.R
  • 9. Performance – Reverse Logistics (India) LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 9 0 10 20 30 40 50 60 2019 2020 $BILLIONS REVERSE LOGISTICS MARKET SIZE - INDIA
  • 10. Problems/E-Commerce and Reverse Logistics The Cost of Returns LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 10 Image Source : Descartes Systems Group
  • 11. Pain Points/E-Commerce and Reverse Logistics – Moving Information and Product 11 Information Management:  Multiple marketplaces and Vendors  Multiple Carrier Platforms Need to consolidate multiple carriers into a stand-alone web-based platform and manage orders from multiple marketplaces within a single gateway. Product Flow:  Sorting and Disposition Management Customer driven LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri Image Source : Descartes Systems Group
  • 12. CILT – The Chartered Institute of Logistics and Transport (India) • CILT is an international logistics body founded in UK in 1921, although the Indian chapter of CILT was formed in 1987 and had more than 3500 practising professionals including more than 35 corporate organizations as its members. • It was established to promote knowledge in the development of logistics sciences and transport further providing a source of authoritative views for communication to the ruling government, leading industry associations and the business community. CILT currently has active membership of more than 35000 practising logisticians. • Special training programme on Reverse Logistics for E-Commerce Source: http://www.ciltindia.in/training-courses LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 12
  • 13. Infrastructure Investments/Future of Logistics - India LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri 13
  • 14. Infrastructure Investments/Future of Logistics - India 14 LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
  • 15. Infrastructure Investments/Future of Logistics - India 15 LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri
  • 16. Conclusion and Recommendations If applied properly, then reverse logistics can reduce the processing cost of up to 25%, increase productivity by 10%, increase net profit by 2 - 5%, and improve customer satisfaction with increased retention. With changing times, it becomes important for logistics players in India to invest in adopting and upgrading technologies and reinventing processes to make them smarter and efficient. Not just Block Chain technologies, but the rise of robotics and artificial intelligence is also redefining the logistics industry in India as it minimizes human intervention, enhances quality and reduces cost. Businesses need to know that carrier systems, accounting solutions, ecommerce platforms and the warehouse must work in lock-step to secure a seamless customer experience and safeguard the bottom line. 16 LSCM European Dimension, Riga – 2019 Jitesh Jayeshkumar Shashtri