Importance Of Reverse Logistics

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Supply Chain Management (SCM) plays one of the most primitive roles in determining the successful running of a business, especially the one that deals with food sector. Having an efficient and effective supply chain is a prerequisite to maintain the quality of product, as well as the process when we talk about food industry. Reverse Logistics, being an integral part of SCM, is usually neglected, specifically in the Indian industry given a few important constraints. The 5 major attributes of Reverse Logistics (Recall, Return, Recycle, Review and Repair) are necessary considerations for effective Business Operations.

The research study we conducted has shown us that majority (around 80%) of the manufacturers and certain third party logistical …show more content…

Reverse Logistics (RL), on the contrary, is the flow of products, services & information in the opposite direction from the consumption end to the origin. In this concept, the explanation of the means and ends is reversed, with the consumer or distributor being the origin and the manufacturer being the end. Reverse logistical actions, though started taking place since the 1860s, its definition was first given by James R. Stock of the Council of Logistics Management in …show more content…

Returns are majorly done because ‘fresh’ products are in demand than the older stock. To avoid such unnecessary returns, the firm should match supply and demand effectively beforehand.

• Recycle

Recycling is a resource recovery option for a part or the whole components of the product. These recovered resources may or may not be used by the original manufactures. The unused resources are sent to other industries as input resources. The concept of “Reverse Logistics Network Modelling” is used for an effective recycling process.
There are two basic stages in the recycle process:
i. Collection ii. Re-processing
Environmental concern, cost reduction and waste disposal legislation are the underlying motivation for recycling of products. In the case of food products, the packets can be recycled if it is made of plastics. In case of beverages, the bottles are returned to the parent manufacturer, where the recycling process takes place, to be refilled with the next batch of the

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