Reverse Logistics And Supply Chain Management

ABSTRACT

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

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

Recall

2. Return

3. Recycle

4. Repair

5. Review

• Recall

Product recall plays an important role in reverse logistics. Recall of products take place due to some defects that might endanger the customer or because of some safety issues that will put the manufacturer in a risk of legal action. When such an incident occurs, the manufacturer has to act immediately and effectively since this can harm the brand of company and can lead to adverse effects, upon consumption. The recalled commodities need to be refurbished or recycled, which is a different part of Reverse Logistics.

Recall is a proactive mechanism, which is applied to avoid accidents and loss of lives. Product recalls are also mandatory for development of the producers. On a quantitative end, recall ratio is considered as a quality indicator by the customers.

There are three types of recall:

i. Class I recall:- The most severe classification is a Class I recall, where there is a reasonable probability that the use of the product will cause serious adverse health consequences or