In attempting to better manage the constant flow of returned goods, manufacturers have identified target areas key to streamlining the reverse logistics. Product disposition alternatives in a reverse supply chain there are a wide array of products, which in the forward supply chain. The purpose of this paper is to analyse the impact of reverse logistics on order and inventory variance amplification in a singleechelon supply chain sc and to propose a new order policy for dampening such amplification. Reverse logistics technology technology utilized retail manufacturing automated material handling equipment 31. Product disposition alternatives in a reverse supply chain there are a wide array of products, which in the forward supply chain reach at. The purpose of this professional paper is to identify and describe the way logistics and supply chain management. The study sought to investigate the impact of reverse logistics on supply chain performance in malawi manufacturing sector. Schematic representation of the direct and reverse logistics. In our experience with numerous retailers, reverse logistics.
To make rational decisions about the structure of a reverse supply chain, its best to divide the chain into its five key components and analyze options, costs, and benefits for each. Elements including low carbon and environmental protection must be included in the entire logistics and supply chain. Many firms have meanwhile implemented large supply chain management scm. Supply chain management and reverse logistics harald dyckhoff. 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. Click download or read online button to get supply chain management and reverse logistics. This is the reverse of the traditional supply chain movement of goods from vendor to customer. Reverse logistics management for supply chain deloitte us. Reverse logistics supply chain management mackie group. Introduction to management of reverse logistics and closed loop. Distribution and logistics management and is a frequent speaker and consultant on. A reverse logistics supply chain management strategy is critical to maintaining healthy inventory turn and operating expenses.
Impact of reverse logistics on supply chain performance. In some ways, reverse logistics in the supply chain strategy is the prime green opportunity of an organization. Global logistics and supply chain management john mangan pdf free global logistics and supply chain management john mangan, chandra lalwani and tim butcher mangan, john, electronic text. 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. Only 18% of computers were recycled in 2007 but through reverse logistics, the environmental protection agency reports a marked rise to 40% recycled units in 20.
Logistics and supply chain management in the hotel. Currently, dr stock serves as editor of the international journal of physical. Any process or management after the sale of the product involves reverse logistics. 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. Also covered are reverse supply chain models such as centralized. Reverse logistics an overview sciencedirect topics. Among the various aspects of scm, emphasis is placed on reverse logistics. The final part of the professional paper will focus on how logistics and supply chain management practices can be implemented across the hotel industry. Rl is a research area focused on the management of the recovery of. The reverse logistics process in the supply chain and. Reverse supply chain is an umbrella term for a number of models, all of which are built to carry out five key processes. Understanding the dynamics behind how, when, and why.
The council of supply chain management defines logistics management as. Companies and their supply chain managers can no longer afford to treat reverse logistics as an afterthought. The volume and monetary value of product flowing in the reverse direction within the supply chain. There is just too much at stake in terms of brand protection, sustainability requirements, and ultimately profitability. The distinction between reverse logistics management and closed loop supply chain management refers to the strategic design intentions that lead to the design of reverse flows and the last targeting of the designed supply chain. Global strategic logistics and supply chain management. Rl is a research area focused on the management of the. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage. Pdf productioninventory control in an eoqtype reverse logistics system. International logistics and supply chain management notes pdf dresden files death masks audiobook, materials handling, supply chain logistics design. In our experience with numerous retailers, reverse logistics remains an overlooked area. Supply chain management and reverse logistics harald. Managing this process can equate to an average of 710% of the total cost of goods. This paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm.
Reverse logistics, a key function of the supply chain, is a complex and often difficult to. Tracking warranty and routing status things get even more complex when a reverse logistics value chain. Reverse logistics is a strategy in supply chain management in which a company collects and reuses some part of their distributed good. This book reflects major trends of the recent decade in scm and, additionally, presents ideas and visions for logistic networks of the 21st century. Closed loop supply chain management and reverse logistics a literature 157 3. Embarking on reverse logistics rl had given carlsberg many advantages such as economic. Pdf this paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm. Download supply chain logistics management pdf free. International logistics and supply chain management notes pdf.
And while maximizing efficiency is always important, reverse logistics can also provide a wide. In reality, reverse logistics costs are less than 4% of total supply chain costs for most companies. Managing reverse logistics to improve supply chain. The reverse logistics experts at fedex supply chain analyze returns processes and optimize operations by eliminating waste streams and identifying the best disposition method for each product whether its return to vendor, return to stock, liquidation, recycle or salvage. Supply chain management and reverse logistics springerlink. The reverse logistics process is illustrated in figure 1. Global logistics and supply chain management john mangan.
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. Our particular objective was to view the management of the reverse logistics process from a holistic supply chain. Understanding the dynamics behind how, when, and why customers return items is critical to understanding purchasing behavior and improving overall experience. When a manufacturers product normally moves through the supply chain network, it is to reach the distributor or customer. Supply chain management and reverse logistics request pdf. Reverse logistics, a supply chain management technique, might be the answer your company is looking for. Reverse supply chain reverse supply chain refers to the movement of goods from customer to vendor. Abstract this paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm. Reverse logistics is a broad area and, in this particular study, we focused on the management of retail returns. Supply chain management and reverse logistics download. Reverse logistics is a part of such reverse supply chains. Reverse logistics supply chain management basics datex. This book attempts to describe the concept of supply chain management and logistics in traditional system and figure out the progress of green supply chain management and reverse logistics. In 2000, recycling activities in the european union eu created 229,286 jobs, which by 2008 had.
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