Jan 12, 2018 a facet of the reverse logistics process is that companies should offer end of life recycling for items they sell. The hidden value in reverse logistics point of view deloitte. How to plan for reverse logistics in your supply chain. Performance evaluation of a reverse logistics enterprise an agentbased modelling approach. Reverse logistics costs in the united states are estimated to be approximately 4 of total u. Managing reverse logistics to improve supply chain efficiency and reduce cost reverse logistics can represent a significant chunk of supply chain cost, and its typically not very well managed, its time to manage reverse as an integral part of supply chain management. Reverse logistics repub, erasmus university repository. Six factors that will improve your reverse logistics process. Paperwork and poor workflow processes tend to plague reverse logistics operations.
Relationship between competitive variables and reversal logistics are also studied and analyzed. Reverse logistics is for all operations related to the reuse of products and materials. The terms reverse logistics systems, product recovery systems, product return networks, and enterprise returns management all refer to the same system. Methodology for performance evaluation of reverse supply chain. Ernst 2000, reverse logistics involves the return flow, considering either defective parts packages or products returned consumed that should go to a recycling. The volume and monetary value of product flowing in the reverse direction within the supply chain has been and. This thesis tries to understand the basic concepts of reverse. The reverse logistics process in the supply chain and. Reverse logistics can be profitable for your enterprise. Enterprise miner, we should use c increment in likelihood at every. Managing reverse logistics or reversing logistics management. I describe a holistic view of reverse logistics and distill 11 insights for successful implementation of reverse logistics from the existing literature and published case studies. Reverse logistics, a fairly new concept in logistics, has gained increasing importance as a profitable and sustainable business strategy. Schematic representation of the direct and reverse logistics processes.
Pdf reverse logistics operation management based on virtual. Pdf reverse logistics has been stretching out worldwide, involving all the. Reverse logistics management enterprise supply chain. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. During the same year, the first commercial study of reverse logistics was made by dr. Britoa reverse logistics diagnostic tool the case of. Reverse logistics deals with the planning, process and flow of finished goods inventory, packaging materials and parts of finished product back from end customer to the product company as sales return or warranty return or unsold inventory with trading partners. Youll learn how to configure and use sap erp to optimize reverse logistics processes, so you can streamline your processes and help your businesses perform more efficiently. Introduction a reverse supply chain represents the products collected from consumers and businesses and returned back to manufacturers, often via distributors. Figure 2 shows the synthesized basic elements of reverse logistics in a municipal enterprise.
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. Therefore, they just focus on trying to reduce the cost of returns processing. Supply chain management has broader objectives and actually encompasses logistics management. 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. Green logistics is becoming very important in the corporate world, since the. Reverse logistics consists of the activities to bring items back from their current location, through the same or a different supply chain.
Reverse logistics is the process of receiving returned merchandise with the purpose of proper disposal or recapturing value. Return management systems, and by the same token, reverse logistics requirements, vary based on product and business model attributes. Recycling direct program samsung takeback and recycling battery recyling packaging takeback mobile takeback it equipment copier handheld personal computer personal digital assistant pda computer flatbed scanner typewriter voluntary programs samsung recycling direct here. Flow of surplus or unwanted material, goods, or equipment back to the firm, through its logistics chain, for reuse, recycling, or disposal. Returns shouldnt be seen as a cumbersome, unavoidable cost but as an opportunity to strengthen and grow your business across multiple channels. The reverse logistics process can be divided into two categories depending on the areas of reverse flow which in turn comprises of primary products, or primary of packaging. Critical barriers to implementation of reverse logistics in the. Reverse logistics programs are typically complicated by a number of factors. The reverse logistics process is illustrated in figure 1. Chapter 15managing reverse flows in the supply chain truefalse 1. Performance measurement of reverse logistics enterprise. Developing a theory of reverse logistics informs journal on. Knowledge about barriers to reverse logistics allows manufacturing companies. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
Especially during the last decade, reverse logistics has obtained recognition both as a research field and as a practice. Reverse logistics rl has gained considerable attention in the literature. Ecn enterprise reverse logistics ecn erl automation helps solve this problem. Pdf performance evaluation of a reverse logistics enterprise an. The premise is the choice of reverse logistics for plastics on the one hand, considering their versatile applications, such as in the packaging, construction and automotive industries. Research executive summaries series tools to manage reverse logistics method the toolkit was developed through intensive interaction, workshopsindustrial forums each workshopindustrial forum was attended by on average 20 managers, with managers from. During the early nineties, the council of logistics management published two studies on reverse logistics. Youll focus on the configuration processes, rather than the actual transactions, with this practical reference guide for returns, repairs, and refurbishment processes. Supply chain spare part reverse logistics corporate citizenship reverse chain.
Reverse logistics management consists of managing the flow of merchandise from stores and customers back to the supplier. Memoire online reverse logistics et dechets dequipements. Dear all, i am working with a large retail group, which is in the business of mall management. Investing in a reverse logistics strategy can come with upfront capital expenses, but it can also yield longterm benefits. Elle nest pas a proprement parler tiree mais en general poussee. Research executive summaries series tools to manage reverse logistics method the toolkit was developed through intensive interaction, workshopsindustrial forums each workshopindustrial forum was attended by on average 20 managers, with managers from around 40 companies connected to the uk retail sector. The role of reverse logistics in creating added value for producers of plastics is presented here. Reverse logistics is a small part of the total logistics of a company.
The application of reverse logistics in a municipal. Reverse logistics processes in plastics supply chains abstract. The first objective of this study is to develop a comprehensive performance measurement pm framework and scorecard for rl enterprise. Reverse logistics deals with the handling of the goods that are being returned to the manufacturer by the customer. These keywords were added by machine and not by the authors. Operation of companies, usually based on theories and practice of management, proves that an organization is a complex unit with multilateral interrelations with natural environment. It covers all the activities that determine the fate of these returned goods. Reverse logistics is a new notion in the history of logistics and supply chain management. Logistics management is often confused with supply chain management. Enterprise reverse logistics is an awardwinning cloudbased supply chain software, it is designed to support small and medium size business. The first by stock 1992 recognized the field of reverse logistics as being relevant for business and society in. A company has varied disposal options to choose once a product has been returned. Performance measurement methodology for reverse logistics enterprise.
Reverse logistics capturing value in the extended supply chain. It collects and analyses data at the point of customer contact, and then automatically processes a goods return authorization gra based on the business rules and processes relating to that product, store and any other rules applied to the situation. Logistics forward process of planning, implementing and controlling the efficient, costeffective flow of raw materials, inprocess inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements council of logistics, 1988. Development of a performance measurement system for. While many retail organizations run bestinclass transportation and logistics systems and processes, some have neglected reverse logistics as a primary focal. Designmethodologyapproach the present work presents understanding rl performance and proposes a conceptual comprehensive reverse logistics pm framework and scorecard for managing rl enterprise. Feb 18, 2009 a cartoon of one product being returned using ecn erl enterprise reverse logistics. Increasing efficiency in reverse logistics processes such as the recovery of the returned products or disposal of endoflife products is one way in which firms attempt to maintain and increase competitiveness and market share. In our experience with numerous retailers, reverse logistics remains an overlooked area. Introduction to management of reverse logistics and closed loop. Revlog published two books, one on quantitative modeling as for aiding reverse logistics decisionmaking 7 and the other on managing closedloop supply chains 7. James r stock 1998, development and implementation of reverse logistics programs, oak brook, illinois, council of logistics management. Reverse logistics presentation reuse logistics free 30. Reverse logistics, supply chain, waste disposal, pharmaceutical industry, ghana.
When a customer purchases an appliance such as a washing machine and it reaches the end of its service life, the customer will often not know how to deal with that item. 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. Pdf a framework for reverse logistics researchgate. The us army first paid its attention to reverse logistics operations in 1998. Reverse logistics is the process of planning, implementing and. 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.
Methodology for performance evaluation of reverse supply. 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. It is estimated that reverse logistics costs account for almost 1 of the total united states gross domestic product. Pdf managing reverse logistics or reversing logistics. The organization framework, the operational process, the dynamic durative of virtual enterprise, those are expounded in detail.
Microsoft erp solution for forward and reverse logistics. Beheersing van retourlogistiek of omgekeerde beheersing van logistiek. Ppt reverse logistics powerpoint presentation free to. Reverse logistics is a type of inbound freight that most companies are losing money on. The second objective is to integrate analytical hierarchy process ahp approach for rl pm. These offering can streamline both traditional and ebusinessbased returns.
To work well, a flexible reverse logistics information system is required. Enterprise reverse logistics received a rating of 4. It is known smith and spiegelhalter 1980 that values of c 1 then smaller models are favored over complex models laud and ibrahim 1995. Reverse logistics is the process of handling products returned by customersand can include your companys return policy, technology tools, return merchandise authorization rma, thirdparty logistics providers 3pl, facility layout, item flow, etc. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The reverse logistics is often neglected among retailers, even though it will almost certainly have an impact on the bottom line.
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