Embarking on reverse logistics rl had given carlsberg many advantages such as economic. A related definition of reverse logistics emphasizes both the focus of reverse logistics on the backward flow of materials from customer to supplier and the goals of maximizing value from the returned item or assuring its proper disposal rogers and tibblembke 1999. Contents understanding the true cost to serve 04 reverse logistic approaches 11 criteria to consider when choosing a reverse logistics service provider 12 conclusion 15 1 nternational cooperative nternational a wiss entity emer rms of the networ of independent rms are afliated futureproof your reverse logistics 5 with nternational nternational provides no client services o memer rm has any. We start by giving an understanding framework of reverse logistics. For reverse logistics, uncertain quantity and quality of returned products is the challenge faced by firms in reverse logistic networks. Reverse logistics rl is an innovation able to bring about immense benefits for organisations in a wide range of industries through enhancing the performance of supply chain procedures.
Purpose the purpose of this research is to identify the barriers faced in the adoption of reverse logistics rl and the respective overcoming schemas. The council of logistics management clm published the first known definition of reverse logistics in the early nineties stock, 1992 the. Hollingsworth is your partner for reverse logistics and return management, delivering efficiency, timeliness, and accuracy. These complex systems the retail industry uses to manage the reverse flow of unsold retail items have created questions about when discard occurs and when resource conservation and recovery act rcra regulations apply to these unsold retail items.
Reverse logistics is an integral component of the supply chain and manufacturers have come to realize that an effective reverse logistics program is an important and strategic part of their business profitability and competitive position. Reverse logistics includes all of the activities that are mentioned in the definition above. Return management systems, and by the same token, reverse logistics requirements, vary based on product and business model attributes. Salvage of parts and materials from endoflife vehicles. These activities management calls as reverse logistics. Pdf a framework for reverse logistics researchgate. Reverse logistics is the first to be presented in 1992 by stock autry, 2005. In our experience with numerous retailers, reverse logistics remains an overlooked area. First, efficient reverse logistics processes can result in lowering of total supply chain costs for the firm, thereby. Reverse logistics gets its name because it is the opposite of forward logistics. Reverse logistics can make the returns process easy for your customers and help you replace or refund their purchases quickly. Epa finalized a memorandum that focuses attention on epas regulations on reverse distribution and policy on reverse logistics. Paperwork and poor workflow processes tend to plague reverse logistics operations.
The way forward part i of ii although reverse logistics is often overlooked, retailers that master this discipline can gain competitive differentiation and turn the. According to leite 2010, reverse logistics aims to plan, operate and control the return of goods aftersales and postconsumer. By this means, we put in context the driving forces for reverse logistics, a typology of return reasons, a classification of products, processes and actors. A good example is the reverse logistics sop which is the opposite of sellercustomer distribution. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Reverse logistics a framework repub, erasmus university. These include reverse flow network design, inventory control for profits, closed loop supply chain, green supply chains. How to develop a reverse logistics strategy eight tactics to try by curt barry december 2003 catalog success magazine multichannel industry leaders such as cabelas, talbots, eddie bauer, neiman marcus, nordstrom, lands end and l. Every business has a production line which most of the time, goes towards a single direction. Reverse logistics at end of the topic, you should be able to describe what is a reverse logistics and.
Rl magazine is a monthly digital publication of the reverse logistics association and is the only magazine in the world completely focused on the issues and nextbest practices of the reverse logistics industry. Reverse logistics is the process of receiving returned merchandise with the purpose of proper disposal or recapturing value. Reverse logistics a wellplanned, customized reverse logistics strategy will reduce storage and distribution costs, improve brand reputation, create more sustainable business practices, and satisfy customer demands. Reverse logistics operations are one of the more interesting and significant trends in supply chain. It will not be good if operations are doing well in a single direction only since it should be continuous. In order to enhance the efficiency of recycling in reverse logistics, rfid is adopted to detect the quantities of return products so that efficient routing can be scheduled.
Abstract this paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. This is exacerbated by the multiple entities customer, manufacturer, reseller and disposer that need to partner to develop a smooth reverse logistics program. Reverse logistics is for all operations related to the reuse of products and materials. In addition we provide a decision framework for reverse logistics and we present it. The three primary areas in which reverse logistics plays a significant role are. Reverse logistics areas of activity and reverse steps. A body of knowledge is beginning to develop around the reverse logistics field which only emerged within the last two decades or so. In general, logistics indicates the products are transported from producer to customer, while reverse logistics is in an opposite way autry, 2005. A reverse logistics consists of all the activities which are included in the logistics, but in reverse logistics, all activities mentioned above are performed in reverse direction. Therefore, we can say that it is a process of a costefficient method of planning, implementing and managing the flow of goods or material from the point of consumption to the point of origin to recycle them or to dispose of them properly. Our broad portfolio of post sales services can also help you reduce downtime for your customers repairs. However, not everything will smoothly run as problems can arise, especially with recalling unusable products.
Yet, the construction industry has not kept pace in reaping the benefits of rl. After research, the correlation among reverse logistics. In this paper we define and compare reverse logistics definitions. Drivers of product returns bernon and cullen, 2007 forecast accuracy and demand variability. The difference is that reverse logistics encompasses all of these activities as they operate in reverse. However, reverse logistics as a research field is relatively new. Comprehension and implementation of reverse logistics are also connected to the understanding of the life cycle of a product, which is related to the environmental impact assessment referring to a product or service, from the acquisition of raw material to its final. Pdf reverse logistics has been stretching out worldwide, involving all the layers of supply chains in various industry sectors.
Keywords closedloop supply chain, reverse logistics, marketing, consumer behaviour 1. The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess. Recovering lost profits by improving reverse logistics 5 impacting the bottom line many executives compare the amount of money spent processing returns to other supply chain activities and conclude that investing resources elsewhere would yield greater results. Especially during the last decade, reverse logistics has obtained recognition both as. Reverse logistics may also include the sale or donation of usable.
The questions in this quiz will test your knowledge of how reverse logistics. Reverse logistics, dealing with the ph y sical flows of products, components and materials flowing from usersowners to reusers, i s a gro wing field both in practice and in the academic world. Reverse logistics is a poorlyunderstood concept in business, and what is even more poorly understood is the role that technology has in facilitating this important process. Introduction as a research topic, reverse logistics rl has attracted the attention of not only companies and professionals but also academia, which has been tackling this issue over the last 1520 years. Logistics in general has been estimated to take up about 10. Reverse logistics is a type of inbound freight that most companies are losing money on. Pdf products, components, materials and other equipment stream forward and back wards and back in their supply chains. The study sought to investigate the impact of reverse logistics on supply chain performance in malawi manufacturing sector. Reverse logistics an overview sciencedirect topics. With the proper planning and systems in place, a recall can be managed effectively to mitigate financial and legal risk, as well as prevent irreparable brand damage. There are many definitions of reverse logistics appear gradually. The study also tries to look at the environmental aspects of reverse logistics.
Growing green concerns and advancement of green supply chain management. Epas regulations on reverse distribution and policy on. Therefore, they just focus on trying to reduce the cost of returns processing. Meeting the reverse logistics challenge supply and. Many firms attracted by the value available in the flow, have proactively participated in handling returned products at. Combining or separating forward and reverse logistics. Reverse logistics, sometimes also known as reverse distribution, is the process of returning usable products to distributors or manufacturers, sometimes after consolidation at a corporate distribution center or by a thirdparty broker. The role of reverse logistics in the concept of logistics. We handle over 20,000 skus and more than 2 million parts annually, supporting our services with extensive experience and a proven track record of excellence. Reverse logistics maturity model rlmm homing in on reverse logistics needs and key success drivers there is no one way when it comes to going and staying circular. Since reverse logistics involved many more steps and processes as materials move back through the supply chain, its understandable that it takes up a notable amount of all logistics costs in the u. The customers are always at the receiving end because sales are the primary target. These external processes are typically separate from the outbound customer delivery logistics flows and use different software. Pdf reverse logistics for the construction industry.
In attempting to better manage the constant flow of returned goods, manufacturers have identified target areas key to streamlining the reverse logistics. While many retail organizations run bestinclass transportation and logistics systems and processes, some have neglected reverse logistics as a primary focal. Research executive summary 3 research executive summaries series tools to manage reverse logistics figure 2. Reverse logistics is a broader concept for overall supply chain optimization, which aims to support closedloop supply chains by the improvement of such activities as product design, supply chain design, and product recovery. In this paper we give an overview of articles that describe how firms and other organizations deal with reverse logistics. Reverse logistics programs are typically complicated by a number of factors.