Scope of reverse logistics. Reverse Logistics 2022-10-15

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Reverse logistics refers to the process of returning goods or materials from their final destination for the purpose of capturing value or proper disposal. This includes activities such as the return of defective products for repair or disposal, the return of excess inventory for credit, and the recovery of materials for recycling.

Traditionally, the scope of reverse logistics has been limited to the returns process within a single company or supply chain. However, the increasing focus on sustainability and the circular economy has led to the expansion of the scope of reverse logistics to include the reuse and refurbishment of products, the recycling of materials, and the use of closed-loop supply chains.

One key area where the scope of reverse logistics has been expanding is in the electronics industry. With the rapid pace of technological innovation, consumers are constantly upgrading their devices, leading to a constant stream of e-waste. This has led to the development of programs to collect and recycle used electronics, with many companies now offering take-back programs or partnering with specialized e-waste recyclers.

Another area where the scope of reverse logistics has been expanding is in the fashion industry. Fast fashion, which is characterized by the rapid production of cheap, trendy clothing, has contributed to a culture of disposability and has led to the development of programs to collect and recycle used clothing. This includes initiatives such as clothing donation bins, in-store recycling programs, and the use of recycled materials in the production of new clothing.

The expansion of the scope of reverse logistics has also been driven by regulatory pressure. In many countries, there are laws requiring the proper disposal of certain types of waste, such as electronic or hazardous materials. This has led to the development of specialized reverse logistics programs to ensure compliance with these regulations.

Overall, the scope of reverse logistics is constantly evolving as companies and industries look for ways to capture value from their waste streams and reduce their environmental impact. From the return of defective products to the recycling of materials, reverse logistics plays a critical role in the circular economy and the sustainable use of resources.

The Scope of Reverse Logistics Case Study Example

scope of reverse logistics

This paper provides content analysis of scientific literature on reverse logistics. If you are interested to know more about other courier companies, we invite you to visit our page. In India, the Supreme Court is in the process of imposing a ban on charging and discharging of automotive batteries on the grounds of pollution, and the union government is coming out with a new legislation making it mandatory to return used batteries to manufacturers for recycling and disposal. Getting things done in the workplace takes a combination of know-how, attitude and big-picture thinking. The Data Bridge Market Research new reports highlight the major growth factors and opportunities in the reverse logistics market. Gate Keeping Philips works closely with its Retail partners to monitor and manage returns.

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Reverse Logistics

scope of reverse logistics

Refurbished computers are sold at lower prices by all leading brands and the demand for such laptops seems to be growing. Experts say as much as 20 percent of everything purchased will be returned. If the plastic housing is still in good shape, for instance, the plastic can be reclaimed and used to refurbish another product. The latter have their own network to collect empty wine bottles from households, hotels, clubs and pubs. In the first stage, wrappers or packaging wastes are collected from households by retailers. Instead of considering the returns in negatively light, a business can extract benefits from this by seeking out the reasons for returns and hence try to gain a competitive edge.

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Scope of Reverse Logistics

scope of reverse logistics

So finally, how much should I pay? How much content will I get in one year? For example, out of a returned pallet only part of the pallet may be added to inventory and a different part of it may be credited to the customer. Companies have championed recycling, repair, and remanufacturing operations because they realize concrete bottom-line benefits from these activities. As a result, some companies have created off-site returns centers, which again require Managing Off-Site Repair Technicians Not all reverse logistics needs fall within the realm of returns. So, here in this blog we are going to share with you the interpretation and significance of. The company has gained outstanding sales by providing reverse logistics services and entering partnerships that strengthen its product portfolio. . First, we survey the existing literature on the area of reverse logistics.

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Target Reverse Logistics: Start With the Top Challenges in the Reverse Supply Chain

scope of reverse logistics

A customer orders a product for the purpose of using it but if the product has flaws, it is then sent back to the manufacturer. All products will be different, so the reverse logistics process needs to handle any of these instances. In many cases, it doesn't make sense to ship products from the consumer back to the distribution center if the value of the product is less than the cost of shipping. Types Of Reverse Logistics Reverse logistics covers a range of processes. Secondly, understanding the dynamic consumer behaviour is extremely important in comprehending their purchasing behaviour and increasing customer satisfaction. Distributors are more likely to be open to stocking all fast moving as well as slow moving stocks.

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Global Reverse Logistics Market Research Report, Future Demand and Growth Scenario

scope of reverse logistics

Postal Service and third-party logistics company Newgistics to operate the Samsung Take-back And Recycling S. Multiple research pieces suggest that the management of more than 40% of businesses thought Reverse Logistics is not important. Also, market share analysis and key trend analysis are the major success factors in the market report. . Depending on the product, such as an HVAC unit versus a computer, repairs may be necessary. These skills are nourished by a constant application of the same by him for the betterment of his organization. .

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Reverse Logistics: Meaning, Examples, Types, Importance And Benefits

scope of reverse logistics

At its core, reverse logistics must help companies efficiently handle returns and damaged or obsolete goods with an eye toward minimizing costs. To help develop KPIs, Tony Sciarrotta shared some of his insights and important KPIs he uses as the Director of Returns Management at Philips Consumer Electronics, North America. Many companies which consider reverse logistics as a troublesome process but there are some which can even earn profits out of it. The practice is more prevalent in the defence establishments where fighter planes are checked after each flight for their performance level, which is every time brought to the level of new one without any compromise on the quality front. Therefore, shippers are at the whims of carriers for routing optimization and trying to keep that package from soaring in total shipping cost. The MIS and the logistics department worked in conjunction and were able to reducepaperwork and thus serve customers faster.

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Nature And Scope Of Reverse Logistic Information Technology Essay

scope of reverse logistics

Nestle India, for example, take back the yogurt every day from their distributors after the expiry of its 24-hour shelf life. They have reduced cost of retrievĀ­ing and recycling the packing waste through economies of scale by joining hands together. Customer requirements of containers for packaging and movement of goods in the domestic or foreign markets are drawn from these depots. Postal Service USPS location, including their own mailboxes. It can even be good for public image.

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45 Things You Should Know About Reverse Logistics

scope of reverse logistics

UPS allows customers to We have used the following courier companies to give an overview of the reverse logistics processes with examples. Statistics has shown that the defective parts are found to have suffered more transit damage and handling damage than the good part. Because of the nature of the products, a chain of custody is required to satisfy regulatory burdens. You must have the process in place before you can begin to understand the reasons driving the return rate. . . For some products, WAD comes into play for disposal as the products are not suitable or not permitted to be resold after return.

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Green Reverse Logistics Brings Many Happy Returns

scope of reverse logistics

The recall process is very effective in the case of industrial products of high unit value, dispatched directly to a small number of customers. Finally, credits are generally issued at a later time and often for only some part of a return, including discarded or un-saleable goods. For a large-value industrial product, coordinating with and locating the customer does not pose any problem, as the number of customers is small, and besides, they are personally known. The problems in the customer service department include: Slow, error prone data entry and credit processing based on a multitude of papers delivered from the returns dock; No link between data collection and credit processing, allowing over-credit given to the customer; It is difficult to segregate problems by customer, salesperson, truck driver or warehouseman to eliminate misconduct. In the case of soft drinks industry, the delivery van enroute to retailers a, b, c see Figure 15. Forward logistics, or traditional logistics, is about getting your product to market and uses automated information systems to track items. Thus, the importance of reverse logistics in e-commerce is undeniable.

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