Reverse Logistics & Outsourcing

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Reverse Logistics is 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. It is the process of returning goods from consumers back to suppliers. Also comprises of sending new or used products backup stream for repair, remanufacturing, reusing, recycling and refurbishing activities. Hang Ten does not carry out reverse logistics. Probably, because the process is tedious and very costly in terms of transportation and it also cost more to recollect back the goods and Hang Ten aim is to have affordable pricing catered to price conscious consumers. Equipped with a cost efficient production and supply chain system, Hang Ten is able to be one of the most price competitive casual apparel retailers in the industry and offers great value-for-money to their consumers. It offers relatively affordable pricing as compared to its rivals, Giordano, Bossini and other clothes brands forever 21 and H&M. Thus, it keeps its producing and manufacturing costs low in order to pass the savings to consumers. With this consumers can continue to enjoy the affordable prices offered by Hang Ten. Engaging in reverse logistics would increase its costs and will not allow Hang Ten to price its clothes affordably. We propose that Hang Ten should engage in reverse logistics. This involves mainly recycling and remanufacturing processes. Textile recycling is the method of reusing or reprocessing used clothing, fibrous material and clothing scraps from the manufacturing process. Apart from this cotton that is a vital component in apparels can... ... middle of paper ... ...mers’ perceptions of the brand. This will in turn reap profits. It is important that Hang Ten practice outsourcing because of the benefits associated with it. Hang ten can also engage in outsourcing by sourcing for cheap labour from countries like India and China, base their operation in countries easy to set up and that are not very costly. Apart from this it can also outsource its colour dyeing process and customer service to a third party who is proficient in doing it.
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