REVERSE LOGISTICS?
21st century is seen as the era of dot coms or one can say the era of startups with e-commerce ventures. besides all pure plays, many brick and mortar businesses are also joining the same league by entering into e-commerce. Online shopping has become a lifestyle now days but it has its ways back to 20th century. In India IRCTC in 2002 for the first time used e-commerce for booking tickets online and than it was followed by airlines for online booking,and then in 2007 came the discounted model of online retailing i.e..flipkart. Today in India travel and e-ticketing websites alone share 68%of total e-commerce business.After online travel segment, online retailing is the second
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the complications involved in reverse logistics such as refund, replacement, exchange increases the cost of supply chain. As per the sources reverse logistics accounts for 15 to 20 % of forward logistics and out of it 5 % are due to logistic failure and rest initiated at the end of customer. reverse logistics accelerate the delivery cost by 50% due to two way courier charges as 3PLs charge INR 45 to 50 higher than the forward delivery for reverse delivery. reverse logistics and mode of payment- relation
another important fact to know is that how ever COD has helped e-tailers in accelerating their sales but chances of returns are higher in such categories which have COD option. steps taken by e-tailers e-commerce retailers are taking various steps to reduce their reverse logistics . comapnies are trying to cut down returns in apparels categories by providing size recommendation features and taking information about the body type of customer before chowing them products .eg. voonik fashion. by sending reconfirmation mail and messages for delivery and giving options of cancellation before
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
The consignment model and its robust logistics have set Flipkart apart from other e-commerce sites. Therefore other e-portals should focus on procurement based on demand and its logistics very well. The best things e-portals need to understand is that to be successful in India, they need to be the gods of distribution.
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
Online retailing in China, dubbed ‘e-tailing’, has doubled every year since 2003. By 2020 the size of China’s online retail market is predicted to reach up to US$650 billion, exceeding the combined value of online markets in the USA, UK, Japan, German and France. With over 590 million internet users, China boasts the world’s largest online population - more than the US and Japan combined – and still growing at almost 10 per cent per annum.
Given the access to thousand of dropshipped products, Melvin started off by picking his store category — clothing. He then narrowed that very broad category down by testing a constant stream of ideas, retaining the ones that gained traction and removing the ones that didn’t work.
In the reverse logistics system, there is a high degree of uncertainty on the time and quantity in recovery process of the consumer or
Reverse logistics has become an increasing concern for many companies over the last decade. It is the process of the movement of goods, moving in the opposite direction, such as from the customer to the business. Some important processes involved are the physical movement of goods, customer support, warehousing and repair. Reverse logistics handles the issue of handling resources effectively. Rogers and Tibben-Lembke (1999) 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’. This definition is seen to...
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.
Unlike forward logistics, reverse logistics is planning, implementing and controlling effective and cost effective flow of materials from consumption point to its origin or source in order to bring back value or for effective disposal. This implies that reverse logistics basically entails events that are crucial to regain, transport, and dispose products. In this case, products are transferred backward from the customer and incorporate the flow of information linked to credit and tracking procedures. This means that a complete supply chain management system entails both forward and reverse logistics inventory management. Despite the difference from the conventional, forward or outbound logistics, reverse logistics is much wider and incorporates a series of assets, which have huge impacts on a company’s bottom line (Greve & Davis,
According to Mentzer (2001), several organizations have made supply chain management a key competency, particularly inbound logistics to support company operations. This is because its impact on services and products delivery to end consumer. Through supply chain management companies coordinate inter organizational operations for mutual efficiency. According to Brar and Saini (2001) to achieve supply chain efficiency organizations must be keen on their inbound logistics operations. This is because inbound logistics is the starting point of all supply activities in a firm and has an impact on subsequent supply chain activities. A disruption on inbound logistics flow may bring a company to a halt if production lines lack materials to run. This may lead to losses to an organization due to lost opportunities. Companies must therefore integrate inbound logistics in their supply chain plans for material sourcing and final product
Logistics is the process of effectively and efficiently managing the movement and storage of information, products, and services between supply chain players with the aim of meeting the needs and requirements of customers. Logistics is important in private companies because it allows companies to meet the requirements of customers and in turn gain profits, and stay competitive. Logistics is important to public companies because it allows them to successfully meet its social objectives and even during successfully conduct international trade.
Outsourcing is the final option for logistics management. When this happens, transportation firms concentrate on logistics, and the company can concentrate on it’s production. There are many cost savings using this type of program, however that lack of control can negatively effect many companies.
As part of curriculum of the Graduate Degree at Chitkara University, Rajpura , students are required to do a project in any reputed organization. For this reason, I did my project research in Safe Express,Chandigarh. The project work was titled “Global scenario of logistics & supply chain” & to suggest ways & means to improve the management strategic decisions.
In today’s era “INTERNET” is playing a significant role in our daily life. People can walk through the internet to one who is actually living on the different side of the planet, can send mails round the clock, search information & even buy things online. With this invention of internet there is a shift in traditional way of shopping. Now there is no need to open a physical store. One can be active at any time and place and purchase products and services. The number of users of internet is increasing day by day which means that online shopping is increasing. Various characteristics of online shopping is making it more convenient for the customers, as compared to traditional way of shopping such as the ability to view and purchase goods and
Distribution warehouse Distribution warehouses are specifically meant for product distribution purposes. These warehouses are majorly used to receive, store, and transfer high volumes of products. These warehouses house products from either a single or multiple manufacturers and they are in most cases stored temporarily. Consolidated types of warehouses are mostly used by house businesses that accept online orders. This type of warehouse is different from the distribution type of warehouse in that, after goods are received into the warehouse, they are broken down into small segments before being transferred to the next destination.