The post Reverse … To manage reverse supply chain, companies need sophisticated information systems. Bosch, for instance, has built a successful business selling power hand tools. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid- and senior-level managers across a broad spectrum of companies and industries. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." For example, they make product design and manufacturing decisions with eventual recycling and reconditioning in mind. Soon you may need to give just as much thought to your reverse supply chain. Customer returns are a form of reverse logistics, but so is the unsold merchandise sent back from a store, among other scenarios. This will ensure to the better management and control of all the stages of waste handling process. If it’s the latter, the company should expect to make heavy investments in consumer education and other marketing efforts. The following are common types of reverse logistics. I ACKNOWLEDGEMENT I would like to express my enormous gratitude and appreciation to all those who supported me and contributed to complete this thesis successfully throughout the entire research process. How Do Reverse Logistics Work? Reverse logistics — defined as the return/exchange, repair, refurbishment, remarketing and disposition of products — has become an important way for companies to improve visibility and lower costs across the supply chain. In recent years, your company has probably spent a lot of time and money fine-tuning its supply chain. In general, a business should seek to make disposition decisions—based on quality, product configuration, or other variables—at the earliest possible stage in the returns process. Despite a growing body of research in the area of reverse supply chain, industries are reluctant to adopt best practices of the reverse supply chain. Rite Aid has a partnership arrangement with Inmar to assist in these areas as their 3PL. The solution for developing a reverse supply chain is in partnering with companies that specialize in reverse logistics operations. Companies must plan and execute strategies to manage products beyond manufacturing and the final sale. But the process can be streamlined if a company subjects the returns to quality standards and uses sensors, bar codes, and other technologies to automate tracking and testing. Asset Recovery Growing According to Dr. Dale Rogers, professor of logistics and supply chain management at Arizona State University, reverse logistics is going to become increasingly popular with logistics managers seeking a process to achieve proper disposal of excess inventory. This area centers on error correction, upgrades in hardware and end-of-life of the products. Companies often will need to work closely with retailers and other distributors to coordinate collection. This text provides general information. Reverse logistics is the term used to describe the way a company handles products that get shipped backwards through the supply chain. Before setting up reverse flows, companies need to evaluate the supply chain within which the business operates. When it comes to supply chain management, RL holds a rather strategic position in its design and development. Most commonly today, companies are using third-party service providers (3PLs) to partner with in their reverse logistics supply chain. Reverse Logistics Logistics Sustainability Transportation Management 163 . A Huge Supply Chain Challenge. With plenty of companies, supply management success is calculated only up until the product is delivered to the end-user. That can eliminate many logistics costs and get remanufactured products to market faster. Depending on the volume, a separate reverse supply chain may be established. A few weeks ago there was a great study released by McKinsey exploring the idea of circular economies and supply circles. However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverse logistics). Learn how Hollingsworth's solutions in warehousing, fulfillment and distribution, packaging, just-in-time delivery, kitting, program management, reverse logistics, and transportation can optimize supply chain management for the food and beverage industry. Cerasis. Smart manufacturers are designing efficient processes for reusing their products. endstream endobj 83 0 obj <>/Metadata 44 0 R/Pages 80 0 R/Type/Catalog/PageLabels 77 0 R>> endobj 84 0 obj <>/ColorSpace<>/Font<>/ProcSet[/PDF/Text/ImageC]/ExtGState<>>>/Type/Page>> endobj 85 0 obj <>stream It builds sensors into the motors of its power tools, which indicate whether the motor is worth reconditioning. The rise in e-commerce transactions, as well as flexible return policies and strict environmental regulations, are shifting the focus of companies to their reverse supply chain. Finally, some companies are using reverse supply chains as integral parts of new businesses. All these processes require the product travel in reverse through your supply chain network. Effective Reverse Supply Chains With creating the product being only a small portion of the business, many businesses invest time into making methods for an effective supply chain . E-commerce as a whole has been designed as a user-first experience, with an order-management system doing much of the heavy lifting for most brands. The Supply Chain Minded community aims to inform and connect professionals active in Supply Chain, Purchasing, Manufacturing, Warehousing, Transport, Distribution; Reverse Logistics, Service Logistics, Lean & Six Sigma, 3PL. 82 0 obj <> endobj Sid Brown, the CEO of NFI, a global supply chain solutions company with locations across North America, said one of the biggest problems with the reverse supply chain is a shortage of labor. For instance, Tom Giovingo, executive vice president at Wauconda, Ill.-based Fidelitone, an outsourced logistics and supply chain services provider, suggests that the reverse supply chain is frequently much more labor-intensive than the forward supply chain. By Max Moriarity, Consultant, Supply Chain Operations Practice Wednesday, August 22, 2012 . This is essential as even improvements within the reverse logistics supply chain do not always pay off to the tune of their expected savings. In addition, for many organizations, reverse logistics (also known as returns management) can represent a significant source of untapped profitability. Reverse Logistics has become a critical component of supply chain management due to its impact on cost, sustainability, branding, customer service, and customer loyalty. … And, as with the conventional forward supply chain, the distribution channel has the opportunity to provide this support. Top companies for reverse logistics at VentureRadar with Innovation Scores, Core Health Signals and more. An often missed and a key area is the reverse supply chain (reverse logistics). Returns are becoming one of the greatest supply chain challenges companies face today. Efficiency is a vital aspect to successful supply chain management in the food and beverage industry, particularly when perishables are involved. Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. Including Returnly.com, LogiNext, Optoro etc Reverse Logistics Supply Chain reverse logistics technologySupply chains face an ongoing crisis with the threat of rising demands across consumers and business-to -business purchasers. We get it - sometimes it comes down to “Buy or Build”. 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 … "As the supply chain assumes a more important role in a business enterprise, companies are scrutinizing logistics costs to eliminate redundancies, and returns. Companies may capture value from returned products by extracting and reconditioning components for reuse or by completely remanufacturing the products for resale. Thankfully, today we have the right technological support in place to help us sail through many of these hurdles. The company has made their supply chain work for them with fewer links in the chain, strategic vendor partnerships, a cross-docking inventory tactic, and technology innovations to cut costs. "So we often are working with the same companies on both their forward and reverse supply chains." It’s the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it. This is the reverse All rights reserved. Reverse Logistics and Supply Chain Challenges. Reverse logistics is a value-added process that addresses how a company receives items back from customers. Inspection and Disposition. Reverse Logistics is as important to a business’s bottom-line as the usual management of procurement, logistics and spend analysis. Improved reverse supply chain visibility, increased productivity, and greater responsiveness to customers. The Supply Chain Trends to Know in 2020 Download White Paper Real-Time Analytics Will Help to Better Answer, What Is Reverse Logistics’ Value. Harvard Business Publishing is an affiliate of Harvard Business School. Dabei wird die Übersetzung des englischen Begriffs unterschiedlich verstanden und verschiedene Denkschulen konkurrieren miteinander. Yin Wei . Reverse supply-chain 1. Reconditioning. Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. xÚÔUÛn7ı>ÚÜåuH�Y�mulDi\”àÃFb¡ºAZÑß÷WvÜ4®ıZ@ÔPœáápæJI/¤P2…�ŒB“JIa”�UÂk¸•†�°FÇë–cyâø‘P ¡_ŒoˆLÍh8. After all, most supply chains are created to get products out the door, not welcome them back in. Whether a company is establishing a reverse supply chain by choice or necessity, it will face many challenges. In addition, overall efficiency for supply chain related processes was improved by approximately 15 percent. Reverse logistics is any process that involves moving things from the customer back to the producer. Reverse logistics is for all operations related to the reuse of products and materials. xÚb```¢LVÉıB ÄÀeaàXÈ ÉàĞx‘ß©€�áRâj¾†�s3²3;'€T)]c;¶ëæ75Ë…_€,�-f¦×8Ú×®Ûᦛؗ{€�£ƒ�Á£££�¡£�9££ƒ�ˆÅ2€üĞ�tS�ª1°Ç i1 –ÙÀ¸‰A€A�É›áC>S;£#£*c£)Ã3†,�å‚e\*9ÚÕÜÖ;¬ıÖùœ§˜õÛ?¦kP�h3°7>Ä«€X��ÃÙÂg\` @ Key insights about reverse logistics process flow, 3PL companies, supply chain management, transportation and logistics, and logistics analytics are covered in this blog. The majority of companies in the food industry don’t have the resources needed to set up a reverse supply chain in order to reuse packaging materials, separate undamaged products from damaged products in a load, or repurpose unsold food for animal feed or … Reverse supply chains differ from forward supply chains in information flow, physical distribution flow and cash flow. Otherwise, companies may find themselves flooded with returned products of such variable quality that efficient remanufacturing is impossible. Better Reverse Supply Chain Process Transparency. Supply chain visibility is also essential for any pharmaceutical supply chain including reverse logistics, as counterfeiting and lost or stolen products continue to be a major concern for this industry. ù?=›� 誇`÷00R�üÏÀ8ÿ@€ ÅúE Major hurdles for supply chain managers In other cases, companies are taking the initiative, seeing opportunities to reduce their operating costs by reusing products or components. A synchronized supply chain to now include forward traditional logistics, inbound logistics, and reverse logistics. Basically, reverse logistics in the supply chain revolves around dealing with end-of-life, malfunctioning, or hardware upgrades. Bulky products like tires, for instance, will require very different handling than small but fragile products like cameras. Reverse Supply Chain vs. Reverse Solutions is trusted by the worlds top brands to implement efficient, sustainable solutions that drive innovation. Reverse Logistics. JULY 28, 2020. Supply Chain Logistics Solutions From e-commerce in the virtual space to traditional brick and mortar - our suite of logistics services is comprehensive. Strategic planning helps to minimize waste and risk, while tactical implementation of technology can enhance existing systems to edge out the competition. May 12, 2017. Reverse Supply Chain / Reverse Logistics Web Resources * Reverse Supply Chain / Reverse Logistics Print Resources * Reverse Supply Chain / Reverse Logistics References (4 of up to 20) * Blackburn, J., Guide, V., Souza, G. and Wassenhove, L. (2004) Reverse Supply Chains for Commercial Returns. Amazon has multiple solutions in place to handle their customer returns. The choices in the supply chain are endless for company owners such as routes, item manufacturing or which provider to use to manage the entire pipeline. inherent challenges that a reverse supply chain faces, such as managing customer expectations on returns policies, partnering with other players in the supply chain and handling the mounting pressure from regulatory authorities. In some cases, companies are being forced to set up reverse supply chains because of environmental regulations or consumer pressures. As Supply Chain Activities are evolving and partnering changes in business models, the focus and activities are not restricted to the management of raw materials and finished goods from point of origin from the vendors to plants and further on to the end customers. The quality, quantity, and timing of product returns need to be carefully managed. In other words, reverse logistics involves taking products back from customers and reworking those products (or parts of them) to create a new product that can be sold. Our research suggests that this task—retrieving the used product—is key to creating a profitable chain. NEW DELHI: With the nationwide lockdown disrupting the dispatch of goods by FMCG companies and suppliers, some retailers have resorted to the reverse supply chain mechanism as a stop-gap procurement arrangement. Reconditioning and remanufacturing processes tend to be much less predictable than traditional manufacturing because there can be a large degree of uncertainty in the timing and quality of returned products. Online ordering has been made a simple, one-click process. • Cognizant 20-20 InsightsReverse Supply Chain: Completingthe Supply Chain Loop Executive Summary Reverse Supply Chain Traditionally, businesses have concentrated on Reverse supply chain refers to the movement of improving the forward supply chain for their goods from customer to vendor. Reverse logistics is the process of moving products backward through the supply chain. Bosch is a good example. Once collected, products need to be transported to facilities for inspection, sorting, and disposition. With plenty of companies, supply management success is calculated only up until the product is delivered to the end-user. Thus, reverse logistics is important for use in advanced green supply chain management concepts and practices. However, on the general basis, there would be 5 distinctive processes in a reverse supply chain system. Reverse logistics is for all operations related to the reuse of products and materials. These entities can offer flexible capacity, expertise in the regulatory environment, and the technology support to take on the complexity of handling multi-SKU reverse logistics. Reverse Supply Chain Management -explore the feasibility to incorporate forward supply chain strategy into the reverse supply chain in the electronic industry . The testing, sorting, and grading of returned products are labor-intensive and time consuming tasks. companies must also learn about the primary components of the reverse supply chain management system. California Management Review, Vol. Whether a company is establishing a reverse supply chain by choice or necessity, it will face many challenges. In general, the companies that have been most successful with their reverse supply chains are those that closely coordinate them with their forward supply chains, creating what we call a closed-loop system. These processes can include repair, warranty recovery, redistribution, value recovery, end-of-life recycling or any combination of these activities. And for a growing number of manufacturers, in industries ranging from carpets to computers, reverse supply chains are becoming an essential part of business. For some companies, however, the key to jump-starting supply chain sustainability can be found in reverse. A rather complex process, reverse logistics is the exact opposite of forward logistics. Reverse Supply Chain / Reverse Logistics Definition. The majority are handled by Genco (which Fedex recently acquired). There is another extension to Supply Chain Process called as Reverse Logistics. These processes are clearly mentioned in the “Remanufacturing and refurbishment activities are a critical part of that procedure,” says Rogers. Tell us your most challenging logistic requirements, and we'll engineer sophisticated solutions using our intelligent technologies. In addition, the forward and reverse flow of materials, information, human resources, and finance occurs among different stakeholders in closing the loop of supply chains. With a new demand-planning and sourcing infrastructure in place, ModusLink focused on improving customer service levels within the client’s after market repair-service business by driving process efficiency and distribution improvements. The company may, for example, want to target customers who cannot afford the new products but who would jump at the chance to buy used versions at lower prices. Dive Brief: With the average retailer realizing 30% of annual sales during the holidays, coupled with a 24% return rate, technology now plays an important role in minimizing these reverse supply chain costs, Retail Info Systems News reported last week. Supply chain executives measure the effectiveness of that flow using the on-time delivery (OTD) metric. The process for how a company handles that product is an example of reverse logistics. Distribution and Sales. Transparency in supply chain operations across your network. Even with reverse supply chains, forward thinking pays big dividends. One of the most complicated and poorly understood terms – reverse logistics (RL), is also one of the toughest nuts to crack. If you’re going to setup up, operate, and innovate a top-notch reverse logistics pipeline it takes skill, knowledge, and capital investments. Reverse logistics has become even more important with the arrival of the e-commerce era. Better Reverse Supply Chain Process Transparency. It will have to educate customers and establish new points of contact with them, decide which activities to outsource and which to do itself, and in general figure out how to keep costs to a minimum while discovering innovative ways to recover value. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Reverse supply (also referred to as reverse logistics) stands for all operations related to the reuse of products and materials. Potential customers for remanufactured products or components include not just the original purchasers but also new customers in different markets. 120 0 obj <>stream Yes, improvements within the supply chain can have a positive ROI, but the only way to ensure an organization understands actual savings versus projected savings lies in letting machine learning delve further into the information and consider everything. Gain scale & agility in your reverse supply chain. Clearly, more companies need to go back to basics and ask what is reverse logistics’ role in the top trends of the supply chain? For instance, Kodak remanufactures its single-use cameras after the film has been developed. This is the reverse of the traditional supply chain movement of goods from vendor to customer. Adopting an excellent method for your reverse supply chain creates ways to deposit … It may also have to meet stringent environmental standards. The technology dramatically reduces inspection and disposition costs, enabling the company to make a profit on the remanufactured tools. Reverse supply chain refers to the movement of goods from customer to vendor. And therefore, it becomes even more interesting to understand the practical details of this process. Supply chain and logistics news. xÚbbd```b``–‘¥ ’é"ˆdùŸQ‹X‚E��Ev€Ù×Á$˜|&g€ee@$W$ˆÖ ‘¼M ²Z,6Gã'�dtN±�À¤Ä Reverse Supply Chain Reverse supply chain refers to the movement of goods from customer to vendor. The most common scenario in which reverse logistics come into play is when a customer wants to return an item. Beginning in 2003, 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. Effective and efficient reverse supply chain implementation may help in managing these returns along with the end of life product returns. Over the past decade, the company has recycled more than 310 million cameras in more than 20 countries. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. This includes business processes that involve transport from distribution endpoints such as retail locations back in the supply chain to locations such as warehouses and factories. Aberdeen's research identifies senior-level oversight as "the top strategy for improving reverse logistics" among best-in-class companies, with 92 percent having a senior service director or executive that oversees all aspects of the return, exchange, repair and refurbishment of products and parts. If a company plans to sell a recycled product, it first needs to determine whether there is demand for it or whether a new market must be created. ModusLink continuously monitors the supply levels of all these elements at the PC manufacturer’s central European hub and replenishes stock on a daily basis to ensure that consistent inventory levels are always on hand to meet the forecasted demand. Download artikel ini: SCI - Artikel Reverse Logistics (584.2 KiB, 795 hits) "Reverse logistics is an area of the supply chain that has been relatively ignored until recent years, as far as costs are concerned," says Bill Wascher, president and CEO of SEKO Worldwide. Automatic consolidation of data from partners and systems. %PDF-1.5 %âãÏÓ Distribution of a COVID-19 vaccine will soon be the biggest supply chain challenge facing the world. A rather complex process, reverse logistics is the exact opposite of forward logistics. *Isi artikel merupakan pemikiran penulis dan tidak selalu mencerminkan pemikiran atau pandangan resmi Supply Chain Indonesia. In other cases, companies are being forced to set up reverse flows, companies need to evaluate supply... Plan and execute strategies to manage products beyond manufacturing and the final sale of... Establishing a reverse supply chains. product returns channel has the opportunity to this! Different handling than small but fragile products like cameras control of all the of... Around dealing with end-of-life, malfunctioning, or proper disposal und verschiedene Denkschulen konkurrieren miteinander management RL! 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