This paper points out the fundamentals of reverse logistics and looks into what kind of decisions todays logistics managers have to take on a daily basis for the improvement of their logistics model. The hard part is that returns are far more complex and. Ppt reverse logistics powerpoint presentation free to. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage of secondary goods and related information for the purpose of recovering value or proper disposal. Filter by location to see reverse logistics manager salaries in your area. Reverse logistics is a new notion in the history of logistics and supply chain management. Paperwork and poor workflow processes tend to plague reverse logistics operations. Pdf managing reverse logistics or reversing logistics. Mar 08, 2017 like other supply chain management processes, reverse logistics can be made more efficient and profitable with better planning, management and execution. Especially during the last decade, reverse logistics has obtained recognition both as a research field and as a practice. Modeling and analysis of reverse logistics rogers 2012. 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.
Reverse logistics also encompasses recycling of packaging and containers, reconditioning or refurbishing of products and disposition of obsolete goods. As this article will illustrate, modeling techniques can be helpful in improving the management of reverse logistics as well. Another pertinent factor that logistics management takes into account is the flow of goods in forward and reverse order. Logistics management is a work process of the procurement management that is a part of the supply chain management including logistics planning, implementation, and control of the produced or procured items. Logistics management is often confused with supply chain management. True tco must include costs from the entire supply chain. Mar 18, 2015 youll also have to weigh the minimum acceptable distance between repair centers and end users as part of your reverse logistics management. The returns management process is a core supply chain management process that comprises the activities related to returns avoidance, gatekeeping, reverse logistics and value maximisation in the. Reverse logistics programs are typically complicated by a number of factors. Managing reverse logistics to improve supply chain efficiency. To work well, a flexible reverse logistics information system is required. During the same year, the first commercial study of reverse logistics was made by dr.
The first by stock 1992 recognized the field of reverse logistics as being relevant for business and society in. 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. A dictionary definition of logistics is the branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities. The us army first paid its attention to reverse logistics operations in 1998.
Without reverse logistics management, your supply chain can hide runaway costs and uncertainties that make it hard to execute well. Whats driving the need for a reverse logistics supply chain strategy. Logistics grouping logistics functions in relation to selling products and services is a sign of the evolution of companies and their management thinking. Council of logistics management 1991 defined logistics as part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements. Overview and challenges for supply chain management article pdf available in international journal of engineering business management 612 july 2014 with 4,337 reads. Improving reverse logistics strategy logistics management. The role of reverse logistics in the concept of logistics centers. A reverse logistics supply chain management strategy is critical to. Sep 24, 2019 how much does a reverse logistics manager make. That entails tactical and strategic reverse logistics planning designed for longterm relationships and sustainable revenue generation. Role and function of logistics management techno faq.
In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and. Typically, a supply chain network creates a path for companies to reach consumers. Mar 21, 2012 key reverse logistics management element reverse logistics information systems one of the most serious problems that the companies face in the execution of a reverse logistics is the dearth of a good information systems. Logistics is a term associated with the movement and storage of produced or procured goods equipment and bulk materials and cargoes for the construction or other using. Download course materials logistics and supply chain. Therefore, they just focus on trying to reduce the cost of returns processing. At this point, you are basically doing damage control. The hidden expenses inherent in reverse logistics management may be the hardest to define and quantify but remain a critical element in getting your tco equation right. Reverse logistics can have a significant impact on a companys bottom line, in good and bad ways. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed. However, in reverse logistics, companies create a new supply chain network that works backwards, and allows consumers to reach. Definition of the council of logistics management clm logistics is the process of planning, implementing, and controlling the efficient, costeffective.
Reverse logistics is the process of handling return of products from a consumer or a retailer to a manufacturer through the use of the supply chain. Nowadays, reverse logistics is developing rather fast because as the volume of waste being recycled and reused has grown, the range of new waste management systems is being expanded and government regulations are being intensified. Jul 10, 2017 reverse logistics is a strategy in supply chain management in which a company collects and reuses some part of their distributed good. Managing reverse logistics or reversing logistics management.
Find materials for this course in the pages linked along the left. 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 management for supply chains deloitte us. In fact, the 15th annual state of logistics report asserts that in 2003 logistics costs accounted for 8. Nov 10, 2010 improving reverse logistics strategy getting to know your customers is key to keeping the retail supply chain tight, say industry experts. 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. Activities such as demand planning, inventory management and transportation have proved to be essential to the achievement of. 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. Reverse logistics management for supply chains download the pdf. Many modeling techniques have been developed to maximize the effectiveness and efficiency of forward logistics and supply chain management. 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. Ministry of foreign affairs, singapore chartered institute. This is exacerbated by the multiple entities customer, manufacturer, reseller and disposer that need to partner to develop a smooth reverse logistics.
Logistics management is an allinclusive term that encompasses both planning and execution of four key aspects of logistics, i. Basically, how can you bring this item back either for repair or return in the least costly manner. During the early nineties, the council of logistics management published two studies on reverse logistics. We believe that governments wont take a leading role in executing supply chain security, although they will. Pondicherry university a central university directorate of distance education logistics and supply chain management mba marketing paper code. Supply chain management has broader objectives and actually encompasses logistics management. Beheersing van retourlogistiek of omgekeerde beheersing van logistiek. What are the challenges of reverse logistics to the. 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. One of the most serious problems that the companies face in the execution of a reverse logistics is the dearth of a good information systems.
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