Reverse Logistics Essay

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Christopher (2011) argues that the term called reverse logistics is used to depict the step of taking products back, generally at the end-of-life, but also for repair and recall. Reverse logistics can be defined as a chain of process to recover or sell the value of a product. That is if a company think supply chain stream in reverse, the one can make a decision the best way to deal with the bounced product. Especially, reverse logistics has received keen attention in the supply chain literature, since it mirrors the capacity of a company within supply chain to affirmatively effect the relationship that customers (Horvath et al., 2005). In addition, reverse logistics triggers main cost result for both the enterprise and its supply chain (Daugherty et al., 2005). As mentioned above, reverse logistics has been an essential structural component to make strategy in whole supply chain (Daugherty et al., 2001). Among a variety of industrial fields, automotive industry is the sector that has one of the complicated supply chains as car enterprises have vertical business relation with their suppliers to control thousands of parts for making a car. It means that the car parts companies should have their own supply chain to maintain relationship with their collaborating companies, and logistics also have to be operated to meet service demands of customers in supply chain. This dissertation presents a study of the effect according to reverse logistics strengthen in automotive parts supply chain. There are drivers promoting importance of reverse logistics. Regarding to this, Literature could be grouped as three parts: unavoidable returns, environmental and economic aspects. First of all, There are a few reasons for unavoidable returns of mate... ... middle of paper ... ... and people. They can also consider reverse logistics as a method to keep and manage their brand reputations, to market their products as well as to obtain competitive benefits (Marien, 1998). It is critical for the major companies which lead the market to improve environmentally sustainable business since environmentally unkind products and materials would be detrimental to firms’ reputations and then could trigger a significant damage. The literature review shows that there are attempts to identify the factors driving reverse logistics strengthen. As a result, it is construed that there are three main reasons and they will signpost to find the objective of this dissertation. Based on these views, this dissertation will discuss and analysis the effect according to increase of importance of reverse logistics, focusing on supply chain in an automotive parts industry.

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