… Companies should consider not only the costs for shipping and storing but also how quickly the value of the returned products will decline and the need for control over the products. "As the supply chain assumes a more important role in a business enterprise, companies are scrutinizing logistics costs to eliminate redundancies, and returns. This is essential as even improvements within the reverse logistics supply chain do not always pay off to the tune of their expected savings. Thankfully, today we have the right technological support in place to help us sail through many of these hurdles. Otherwise, companies may find themselves flooded with returned products of such variable quality that efficient remanufacturing is impossible. Reverse logistics is for all operations related to the reuse of products and materials. There is another extension to Supply Chain Process called as Reverse Logistics. A few weeks ago there was a great study released by McKinsey exploring the idea of circular economies and supply circles. Although benefits are received when new technology is added to a product, the surplus of earlier product remains stagnant or left in storage… costing a company valuable space and loss of funds. For instance, Kodak remanufactures its single-use cameras after the film has been developed. 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. 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. 106 0 obj <]/Info 81 0 R/Filter/FlateDecode/W[1 3 1]/Index[82 39]/DecodeParms<>/Size 121/Prev 542227/Type/XRef>>stream Reverse logistics is the process of moving products backward through the supply chain. Reverse Solutions is trusted by the worlds top brands to implement efficient, sustainable solutions that drive innovation. Adopting an excellent method for your reverse supply chain creates ways to deposit … And, as with the conventional forward supply chain, the distribution channel has the opportunity to provide this support. 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 … One of the most complicated and poorly understood terms – reverse logistics (RL), is also one of the toughest nuts to crack. Inspection and Disposition. Before setting up reverse flows, companies need to evaluate the supply chain within which the business operates. The majority are handled by Genco (which Fedex recently acquired). Thus, reverse logistics is important for use in advanced green supply chain management concepts and practices. Your entire supply chain will benefit from partnering with XPO. A rather complex process, reverse logistics is the exact opposite of forward logistics. If it’s the latter, the company should expect to make heavy investments in consumer education and other marketing efforts. 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. Reverse Logistics is as important to a business’s bottom-line as the usual management of procurement, logistics and spend analysis. Reverse Logistics Logistics Sustainability Transportation Management 163 . It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Including Returnly.com, LogiNext, Optoro etc Unfortunately, this doesn’t always account for all situations. 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 Trends to Know in 2020 Download White Paper Real-Time Analytics Will Help to Better Answer, What Is Reverse Logistics’ Value. 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. However, on the general basis, there would be 5 distinctive processes in a reverse supply chain system. 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\` @ For companies to remain competitive and compliant, it has become a priority for businesses across industries — from retail to automotive to electronics — to update their reverse supply chain … 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. "So we often are working with the same companies on both their forward and reverse supply chains." Companies are using reverse supply chains as integral parts of new businesses. Reverse Supply Chain Reverse supply chain refers to the movement of goods from customer to vendor. All rights reserved. Finally, some companies are using reverse supply chains as integral parts of new businesses. Top companies for reverse logistics at VentureRadar with Innovation Scores, Core Health Signals and more. ù?=›� 誇`÷00R�üÏÀ8ÿ@€ ÅúE Reverse logistics is a value-added process that addresses how a company receives items back from customers. By Max Moriarity, Consultant, Supply Chain Operations Practice Wednesday, August 22, 2012 . Reverse supply (also referred to as reverse logistics) stands for all operations related to the reuse of products and materials. 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. 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. Online ordering has been made a simple, one-click process. Supply chain and logistics news. California Management Review, Vol. 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 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. 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. 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. Download artikel ini: SCI - Artikel Reverse Logistics (584.2 KiB, 795 hits) However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverse logistics). Unter der Bezeichnung Reverse Logistik (englisch Reverse Logistics) oder auf Deutsch Rückführungslogistik, Umkehrlogistik, Rücknahmelogistik werden alle logistischen Prozesse betrachtet, bei denen Güter vom (End-)Kunden ausgehen und wieder in der Lieferkette zurück laufen. Over the past decade, the company has recycled more than 310 million cameras in more than 20 countries. The following are common types of reverse logistics. Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. For example, they make product design and manufacturing decisions with eventual recycling and reconditioning in mind. Reverse supply chain refers to the movement of goods from customer to vendor. Amazon has multiple solutions in place to handle their customer returns. 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. Clearly, more companies need to go back to basics and ask what is reverse logistics’ role in the top trends of the supply chain? Supply chain executives measure the effectiveness of that flow using the on-time delivery (OTD) metric. In other cases, companies are taking the initiative, seeing opportunities to reduce their operating costs by reusing products or components. … This is the reverse 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. Reverse logistics is the term used to describe the way a company handles products that get shipped backwards through the supply chain. These processes can include repair, warranty recovery, redistribution, value recovery, end-of-life recycling or any combination of these activities. This will ensure to the better management and control of all the stages of waste handling process. 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. 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. 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. Reverse Logistics and Supply Chain Challenges. 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. Unfortunately, this doesn’t always account for all situations. “Remanufacturing and refurbishment activities are a critical part of that procedure,” says Rogers. In many cases, it will make sense to outsource the logistics to a specialist. After all, most supply chains are created to get products out the door, not welcome them back in. 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. Reverse Logistics 163 . Reverse supply chains differ from forward supply chains in information flow, physical distribution flow and cash flow. This text provides general information. Reconditioning. Reverse logistics is for all operations related to the reuse of products and materials. In recent years, your company has probably spent a lot of time and money fine-tuning its supply chain. Smart manufacturers are designing efficient processes for reusing their products. Improved reverse supply chain visibility, increased productivity, and greater responsiveness to customers. Once collected, products need to be transported to facilities for inspection, sorting, and disposition. Cerasis. xÚbbd```b``–‘¥ ’é"ˆdùŸQ‹X‚E��Ev€Ù×Á$˜|&g€ee@$W$ˆÖ ‘¼M ²Z,6Gã'�dtN±�À¤Ä Even with reverse supply chains, forward thinking pays big dividends. *Isi artikel merupakan pemikiran penulis dan tidak selalu mencerminkan pemikiran atau pandangan resmi Supply Chain Indonesia. With plenty of companies, supply management success is calculated only up until the product is delivered to the end-user. 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. Reverse Supply Chain vs. Reverse Logistics has become a critical component of supply chain management due to its impact on cost, sustainability, branding, customer service, and customer loyalty. 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. An often missed and a key area is the reverse supply chain (reverse logistics). The testing, sorting, and grading of returned products are labor-intensive and time consuming tasks. It builds sensors into the motors of its power tools, which indicate whether the motor is worth reconditioning. 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. Whether a company is establishing a reverse supply chain by choice or necessity, it will face many challenges. Reverse logistics has become even more important with the arrival of the e-commerce era. Tell us your most challenging logistic requirements, and we'll engineer sophisticated solutions using our intelligent technologies. Potential customers for remanufactured products or components include not just the original purchasers but also new customers in different markets. Rite Aid has a partnership arrangement with Inmar to assist in these areas as their 3PL. The technology dramatically reduces inspection and disposition costs, enabling the company to make a profit on the remanufactured tools. 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. 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. 120 0 obj <>stream 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 . Reverse Supply Chain / Reverse Logistics Definition. Bosch, for instance, has built a successful business selling power hand tools that have been remanufactured. Our research suggests that this task—retrieving the used product—is key to creating a profitable chain. JULY 28, 2020. That’s exactly what we bring to the table at Reverse Solutions. Companies must plan and execute strategies to manage products beyond manufacturing and the final sale. Gain scale & agility in your reverse supply chain. May 12, 2017. A rather complex process, reverse logistics is the exact opposite of forward logistics. endstream endobj 82 0 obj <> endobj Reverse Logistics. To manage reverse supply chain, companies need sophisticated information systems. Companies may capture value from returned products by extracting and reconditioning components for reuse or by completely remanufacturing the products for resale. When it comes to supply chain management, RL holds a rather strategic position in its design and development. Bulky products like tires, for instance, will require very different handling than small but fragile products like cameras. Distribution of a COVID-19 vaccine will soon be the biggest supply chain challenge facing the world. The solution for developing a reverse supply chain is in partnering with companies that specialize in reverse logistics operations. All these processes require the product travel in reverse through your supply chain network. Reverse supply-chain 1. While the reverse supply chain is an appraoch that is yet to be addressed by many manufacturers, a growing number of companies are looking for external support to help them implement reverse logistics processes. The post Reverse … Effective and efficient reverse supply chain implementation may help in managing these returns along with the end of life product returns. How Do Reverse Logistics Work? In addition, overall efficiency for supply chain related processes was improved by approximately 15 percent. And for a growing number of manufacturers, in industries ranging from carpets to computers, reverse supply chains are becoming an essential part of business. Customer returns are a form of reverse logistics, but so is the unsold merchandise sent back from a store, among other scenarios. Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. 46(2). "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. Basically, reverse logistics in the supply chain revolves around dealing with end-of-life, malfunctioning, or hardware upgrades. 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. %PDF-1.5 %âãÏÓ We also provide kitting, packaging and other high-value-add services, including end-to-end reverse logistics management of merchandise returns. 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