Most of us think of logistics as a one-way street. Products are manufactured, packaged, stored in a warehouse, sold, and then shipped off to the customer ... end of story. Yet for many logistics managers today, that's not the end of the story. In addition to managing outbound goods, they also are responsible for reverse logistics--the flow of returned goods and packaging, including customer service and final disposition of returned items.
The need to manage waste materials and returned goods is growing in all kinds of industries. Today, companies like Xerox, Mobil, Home Depot, and Ethan Allen Furniture - to name just a few - have recycling programs that meet the needs of their individual industries. There are many reasons for the explosive growth of what's come to be known as "reverse logistics" over the past five years or so. The most prominent is increasing public awareness of the social costs of excess waste. A large-scale recycling program, therefore, generates goodwill among consumers and industrial customers. As support for recycling grows, moreover, companies want to be perceived as good citizens that are committed to protecting the environment. Another important reason is the need to control costs. Frequently, manufacturers treat recovery of products and packaging as an afterthought. A well-managed reverse-logistics program, however, can bring enormous savings in inventory-carrying, transportation, and waste-disposal costs.
For these and other reasons, more and more companies are launching reverse-logistics programs today. Unfortunately, it's often assumed that reverse logistics is simply a matter of reversing the outbound distribution process. In fact, recycling and returns management have their own unique and complex issues that affect logistics operations. A brief overview of those issues highlights the five main areas you should consider before starting a reverse-logistics program.
A related issue is what kind of resources you are willing to commit to a reverse-logistics program. The obvious answer is that the level of potential benefits will influence how much a company will invest in such a program. Too often, though, companies shortchange themselves by failing to devote sufficient time, money, and personnel to the project. "A lot of times, [reverse logistics] becomes a side job for somebody. It's not their focus or a hi...
... middle of paper ...
... of your process and convert these "costs" into investments for profitable, long-term customer relationships.
Tom Andel: Reverse logistics. A second chance to profit. Transportation and Distribution Magazine. July, 1997
Toby B. Gooley: There and back again. Logistics Management Distribution Report. Apr 30, 1999
Kathleen Hickey: Rite Aid in Reverse. Traffic World. June,1999.
"IS THIRD PARTY LOGISTICS IN YOUR FUTURE?" Modern Material Handling. Dec,2000.
Ken Krizner: A marriage between technology and operations leads ReturnBuy's attempt to re-invent reverse logistics.(Industry Trend or Event) Frontline Solutions, Feb. 1997.
Mitchell E. MacDonald: Put it in reverse! Logistics Management Distribution Report. May 1, 1997
Ronald A. Marguilis: Reverse logistics. Take it back Materials Management and Distribution. Nov, 1996
John Pogorelec: Reverse logistics is doable, important.(Technology Information) Frontline Solutions. Sept. 2000.
Greg Raimer: IN REVERSE. Materials Management and Distribution magazine. Sept, 1997.
Beth Schwartz: Reverse logistics strengthens supply chains. Transportation and Distribution Magazine. May, 2000.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
Warehousing Is An Integral Part Of Logistics Providing The Buffer Between The Production And Consumption Rate Of Flow
- Warehousing is an integral part of logistics providing the buffer between the production and consumption rate of flow (Jr., 2014, p. 173). Owning a warehouse is a costly capital investment as well as adding the on-going expenses of maintenance and staffing and being inflexible to changing environment. To avoid the capital investment and to increase the flexibility, a firm may look for different warehousing options such as contract warehousing known as 3rd Party Logistics (3PL) providers. 3PL may be favorable to some organizations as it reduces the negative effects of owning the warehouse while highlighting the benefits of public warehouse (Jr., 2014, p.... [tags: Supply chain management, Logistics, Supply chain]
1023 words (2.9 pages)
- KAIZEN APPROACH TO SUPPLY CHAIN MANAGEMENT: FIRS STEP FOR TRANSFORMING SUPPLY CHAIN INTO LEAN SUPPLY CHAIN. Chains are usually series of entities established for the sole purpose of offering services and goods to the market and the management mechanisms for supply chains vary significantly. One of the most prominent management approach employed in chains is the lean supply chain management. Kaizen approach to boost the lean control mechanism is an integral part of the process, usually applied at the early stages of the lean management strategy.... [tags: Supply chain management, Management]
811 words (2.3 pages)
- CHAPTER ONE INTRODUCTION 1.1 Background of the Study Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed... [tags: Supply chain management, Supply chain, Inventory]
1043 words (3 pages)
- Supply Chain Management & IT Introduction Supply Chain Management (SCM) has become such an integral and essential part of every day business that entire fields of major are dedicated solely to it. SCM, pioneered by Wal-Mart, has grown in the last few years to include not only the management of the physical aspects of SCM, but also the electronic components, such as the Internet and many SCM tools, for instance SAP. Inventory being held across the retail supply chain at any one time amounts to $1 trillion, according to a report by Benchmarking Partners, based on U.S.... [tags: Supply Chain Management Papers]
1682 words (4.8 pages)
- The larger a company’s supply chain, the more vulnerable the company becomes. When the company’s suppliers spread further and further away from the company, the company becomes even more vulnerable to political and currency risk, cyber attacks, missed inventory goals, and failed communication with the supply chain. For a company to overcome those potential vulnerabilities, a company must build safeguards into their operations. Those safeguards include a strong corporate backing in supply chain management, solid relationships with suppliers, more attention to forecasting, and a holistic approach to sustainability.... [tags: Supply Chain Management]
995 words (2.8 pages)
- This case study discusses a supply chain management approach analysis and describes how project managers should implement business processes to understand the importance of a successful project implementation. The case analyzes the “topics related to financial management, accounting, procurement, sales, marketing, contracts, manufacturing, distribution, logistics, the supply chain, strategic planning, tactical planning, operations management, organizational structures and behavior, personnel administration, compensation, benefits, career paths, and health and safety practices” (Schwalbe, 2011).... [tags: Business Management ]
1031 words (2.9 pages)
- Strategic Communication Strategic communication is an integral part of every business environment and workplace. Businesses without good communication tend to have difficulty in management and not do as well as businesses with high-quality communication. Internal communication within a business in which employees create relationships with another and share valuable information is recognized as the foundation of modern organizations (Men and Stacks, 2014). In business, employees and managers participate in three types of formal communication to relay information: downward, upward, and horizontal communication.... [tags: Communication, Management, Strategic management]
864 words (2.5 pages)
- Statement of Purpose I would like to introduce myself as an enthusiastic learner of excellence and with that endeavor in mind I am approaching formally for the doctoral study to the department of Textile and Apparel Management under the College of Human Environmental Science of University of Missouri. Regarding my professional experience, I have been teaching on Textile and Apparel in university level since January 2008 and I am now working as a Senior Lecturer at Southeast University, Bangladesh.... [tags: Supply chain management, Management, Textile]
863 words (2.5 pages)
- It has become apparent the effects of globalization has changed the marketplace so much in the past few decades that a much faster response is demanded from producers and their supply chain. This is done by effective supply chain management, which is the integration of key business processes acrosss the supply chain within organisiations. The objective of this is to create a system of best value for the entire supply chain including the consumer. In recent years, many firms have realised the importance of the optimization and streamlining of the supply chain management processes, it has since become the focus for many firms.... [tags: Globalization, Marketplace, Market]
1573 words (4.5 pages)
- 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.... [tags: Supply chain management, Retailing]
1866 words (5.3 pages)