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Supply Chain Management And Reverse Logistics Pdf

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Companies that combine the "reduce, reuse, recycle" mantra with the supply chain wisdom of managing costs and stamping out inefficiencies are developing reverse supply chains that help the Earth, the customer, and the bottom line. The path to a greener supply chain is often paved with forward-looking ideas focused on environmentally friendly manufacturing, transportation, and distribution processes.

This paper compares and contrasts forward and reverse logistics in a retail environment, with the focus on the reverse flow of product.

Supply Chain Management and Reverse Logistics

Companies that combine the "reduce, reuse, recycle" mantra with the supply chain wisdom of managing costs and stamping out inefficiencies are developing reverse supply chains that help the Earth, the customer, and the bottom line. The path to a greener supply chain is often paved with forward-looking ideas focused on environmentally friendly manufacturing, transportation, and distribution processes.

For some companies, however, the key to jump-starting supply chain sustainability can be found in reverse. By embracing reverse logistics strategies including returns management; product repair and refurbishment; recycling of goods and materials; and proper disposal of materials from unwanted goods, companies can move the sustainability needle while also cutting costs and reaping products with a longer shelf life.

And, by working to cut out inefficient returns processes that result in unnecessary transportation moves, reverse logistics proponents can reduce carbon emissions and improve air quality. Considering the volume of consumer goods that ends up in landfills, it is clear that Mother Earth needs the help. In , for example, only , tons, or 18 percent, of the 2.

Environmental Protection Agency. The remaining 82 percent, or 1. In addition, because repairing and refurbishing products helps extend the life of their goods, companies embracing the reverse logistics cycle can wait longer to produce new products—as well as the carbon emissions that come from manufacturing those goods.

Reverse logistics is currently in the spotlight thanks to the convergence of a down economy—which has supply chain executives turning over every stone in search of cost savings—and rising public interest in corporate environmental responsibility.

Indeed, 84 percent of shoppers responding to a CapGemini survey list sustainable manufacturing features as an important aspect when making buying decisions. As a result, companies that can tout their green supply chain practices are rewarded with both fiscal efficiency and a public relations boost. But while many companies have embraced sustainable reverse logistics practices out of a desire to be green, the bottom line is still the biggest motivating factor.

At its core, reverse logistics must help companies efficiently handle returns and damaged or obsolete goods with an eye toward minimizing costs. Companies have championed recycling, repair, and remanufacturing operations because they realize concrete bottom-line benefits from these activities.

One business sector that is championing these activities—and seeing the bottom-line benefits—is the electronics industry, largely because of skyrocketing growth in high-tech gadgets. Thanks to ever-changing technology, top sellers such as digital cameras, cell phones, video game systems, computers, televisions, and other electronic devices become obsolete in a few short years—leaving electronics manufacturers to deal with mountains of unwanted product.

For electronics manufacturers, recycling unwanted components is one key aspect of green reverse logistics. In , Samsung, a global leader in the electronics industry, began its Recycling Direct program—partnering with take-back and recycling companies that do not incinerate, send materials to solid waste landfills, or export toxic waste to developing countries—and has since recycled 14 million pounds of waste from its consumer goods and IT products.

The company has established drop-off locations across all 50 states in more than fixed locations, where consumers can take unwanted electronics both Samsung and non-Samsung brands.

The company has also teamed up with the U. Using a pre-paid Smart Label, customers can return old printer cartridges to Samsung by simply dropping them in any mailbox. Through the S. Steel also credits the S. Postal Service, Samsung can conduct its recycling operations with minimal use of additional energy or materials consumption," Steel explains.

This approach to recycling returns yields convenience, as well as reduced time, energy, and resources for both Samsung and consumers. In addition to recycling, electronics manufacturers such as Samsung have realized that repairing damaged products and reusing the materials from obsolete or damaged goods—rather than simply disposing of them—is a green, cost-effective way of doing business.

The higher price points of new technology items such as LCD and plasma screens has led to a rebirth of remanufacturing, with electronics manufacturers finding ways to put products back in the marketplace to generate additional revenue.

This line of thought is fairly new for electronics companies—and consumers. Used and refurbished products now sit on store shelves next to new goods as a perfectly acceptable option. It is OK now to buy refurbished electronics; in fact, it has even become a selling point in some cases, because refurbished products are seen as being greener," ATCLE's Morris notes.

Once again, refurbishing also satisfies the executive suite's need to keep a lid on costs. Although a refurbished device will not bring full market value, it can still generate revenue to help reduce operational expense. Electronics is not the only industry benefiting from sustainable reverse logistics operations. Golf club maker Callaway, for example, routinely accepts trade-ins of used golf clubs; after replacing the grips, the company sells the refurbished clubs.

Consumers get a discounted price, Callaway earns additional revenue, and the landfills stay that much emptier. You bet it is. Does that make good business sense?

You bet it does," says RLA's Vick. Pharmaceutical companies are also getting a dose of green reverse logistics action. The plant creates two million kilowatt hours of electricity annually from this process, enough to light homes for one year. Another green reverse logistics example tracks to the rails: razor maker Gillette purchases high-caliber steel from worn-out rail tracks and uses it to manufacture its products. This partnership allows the railroads to dispose of unneeded steel in an environmentally friendly and cost-effective way, while helping Gillette cut purchasing costs and avoid the carbon emissions that would result from new steel production.

Transportation is another major aspect of reverse logistics ripe for a green makeover. As with forward logistics, the execution of reverse logistics inherently requires large transportation volumes, which carry all the environmental risks of pollution, emissions, and increased carbon footprint.

How then to transport returns effectively while still striving for sustainability? For Buy Seasons, an online retailer of costumes and party supplies, the Flexible Access program proved to be an environmentally friendly and cost-effective way to manage returns.

Buy Seasons, whose flagship Web site BuyCostumes. From August through October, the company's daily volume of 4, to 7, shipments increases tenfold to 40, to 50, packages per day, so the number of returns also piles up after Halloween.

Also scaring the company was the lack of environmental efficiency in its returns process. Because the company does not have an actual store, customers wanting to return merchandise had to drive to a postal location or UPS drop-off point.

From there, additional transportation legs were required to ship the returns back to Buy Seasons' warehouse in New Berlin, Wisc. To rectify both the operational and environmental inefficiencies of its returns process, Buy Seasons adopted UPS' Flexible Access program. Customers can now initiate a return, print a label, request package pickup, and track their return shipment online.

They also have the option of dropping off return packages at any USPS location, including a home or office mailbox—eliminating the need for extra transportation legs. It's convenient and it's green. The UPS solution also gives Buy Seasons better visibility into its returns volume, which has made the company more prepared to handle it. The solution gives us full tracking so we know on any given day whether to expect 90 returns or returns," Rowinski says.

Holding reverse logistics transportation moves to a minimum in order to keep a lid on costs and carbon footprint is especially challenging for spare parts and service logistics operations.

For every part that goes out, there's a part that has to come back," notes Todd Snyder, director of global service parts logistics solutions and implementations for UPS Supply Chain Solutions.

The traditional process of executing service parts returns involves multiple steps, parties, and transportation legs—all of which add up to inefficient operations and wasteful environmental impact. Typically, a field technician called to fix a copier, computer, or medical device receives a repair part from a field stocking location, performs on-site service, and has at least one defective part to return. The defective parts are usually shipped back to a third party's central DC, then out to the manufacturer for repair, and finally back to that DC to be restocked and reused.

The smart labels provide field technicians a way to send defective parts directly back to a manufacturer for repair, instead of going first to a central DC for triage and sorting. The program essentially cuts a leg of transportation from each reverse move, providing a more sustainable and cost-effective way for service parts operations to manage reverse logistics.

Electronics retail giant Best Buy has developed a similar solution to manage its repair parts reverse logistics through a partnership with Fidelitone, a Wauconda, Ill. The solution—a virtual parts returns process—has helped Best Buy greatly reduce freight emissions and logistical carbon footprint, while cutting millions of dollars each year in freight costs and expediting its receipt of credit on parts returns.

Thanks to technology developed as part of the virtual parts returns process, Best Buy's field technicians have the ability to determine immediately—based on business rules set up by Best Buy—whether a defective part is eligible for remanufacturing or is unusable. A technician at a customer's house repairing a flat-screen TV, for example, can take the damaged PC board out of the TV, find out where the replacement part was sent from, and determine what to do with the damaged part.

If the PC board can be repaired, the technician ships it out for remanufacturing; if it can be reused or has value for its components, the technician will return it to Fidelitone; and if the PC board is unusable, it is disposed of immediately.

Having access to this information at their fingertips allows technicians to save Best Buy from engaging in unnecessary—and non-green—transportation. Achieving a cost-efficient, sustainable reverse supply chain is now a priority for many companies. To accomplish that goal, they are combining the green mantra of "reduce, reuse, recycle" with the age-old supply chain wisdom of managing costs and stamping out inefficiencies.

When a consumer returns an electronics product because it is outdated or not functioning properly, they don't likely give much thought to what happens next. Brian Morris, director of engineering for the Texas-based 3PL, gave Inbound Logistics a detailed explanation of the process involved in giving a returned product a new life:.

If there is nothing wrong with it, we can repackage it for sale. If it's a faulty product, we identify the failure and determine what it takes to repair or refurbish that product," Morris explains. There must be an acceptable ratio to be profitable. The range is typically 70 to 80 percent of the product's original cost. If the plastic housing is still in good shape, for instance, the plastic can be reclaimed and used to refurbish another product.

Batteries are another key component. Most batteries are not exposed, so if they still hold a charge properly and are in good shape cosmetically, they are often put through reconditioning. After reconditioning, we use them as replacement batteries or sell them to other refurbishing operations. We also find uses for components such as keyboards and USB cables. Circuit boards can be crushed and smelted, and the precious metals—such as titanium, copper, and small traces of gold—are removed and sold to another circuit board manufacturer or even a jewelry house.

This helps them reduce costs, and it allows us to keep waste from piling up in landfills," Morris concludes. January Feature Stories. An Inside Look at Refurbishing When a consumer returns an electronics product because it is outdated or not functioning properly, they don't likely give much thought to what happens next.

Brian Morris, director of engineering for the Texas-based 3PL, gave Inbound Logistics a detailed explanation of the process involved in giving a returned product a new life: "When we receive returns from customers, we do a test inspection to find out how many faults the product has.

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Green Reverse Logistics Brings Many Happy Returns

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Environmental and economic issues have significant impacts on reverse supply chain management and are thought to form one of the developmental cornerstones of sustainable supply chains. Perusal of the literature shows that a broad frame of reference for reverse supply chain management is not adequately developed. Save to Library. Create Alert.

In recent years, your company has probably spent a lot of time and money fine-tuning its supply chain. Soon you may need to give just as much thought to your reverse supply chain. What is a reverse supply chain? And for a growing number of manufacturers, in industries ranging from carpets to computers, reverse supply chains are becoming an essential part of business. In some cases, companies are being forced to set up reverse supply chains because of environmental regulations or consumer pressures. Beginning in , for example, European Union legislation will require tire manufacturers operating in Europe to arrange for the recycling of one used tire for every new tire they sell.


PDF | This paper is aimed at introducing the concept of reverse logistics (RL) and its implications for supply chain management (SCM). RL is a.


The Reverse Supply Chain

Reverse logistics management for supply chains has been saved. Reverse logistics management for supply chains has been removed. An Article Titled Reverse logistics management for supply chains already exists in Saved items.

Skip to Main Content. A not-for-profit organization, IEEE is the world's largest technical professional organization dedicated to advancing technology for the benefit of humanity. Use of this web site signifies your agreement to the terms and conditions. Supply chain management and reverse logistics-integration of reverse logistics processes into supply chain management approaches Abstract: The supply chain management SCM concept is connecting overlapping business processes.

Differences between forward and reverse logistics in a retail environment

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2 Comments

Judas R. 13.06.2021 at 11:08

To browse Academia.

Girllover3443 15.06.2021 at 23:17

Reverse logistics is for all operations related to the reuse of products and materials.

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