Reverse Logistics in Supply Chain Management
Abstract
A growing number of companies are finding that there is money to be made by sending things back. The concept is called reverse logistics, but most people simply call them returns. And all sorts of businesses have come to understand that their work is unfinished until their customers are happy, and the bottom line looks good. And that bottom line impact can be a huge one. In the U.S. alone, the cost is an annual $100 billion. So a growing number of companies have found ways to create a real business out of sending things back.
The evolution of reverse logistics for manufactured products is developing in direct proportion to the rapid advancements in technology and the subsequent price erosion
…show more content…
Today, the customers have the benefits of greater product variety. It has resulted in an increase in unsold products, rate of returns, packing materials, and also the waste. This has given rise to increase in the volume of product returns in the form of reverse logistics. The reverse logistics can lead to economic benefits by the recovery of the returned products for reuse, remanufacturing, recycling, or a combination of these options for adding value to the product.
Management Inattention
The conventional wisdom has been that over the last few years, most companies have practiced reverse logistics primarily because of government regulation or pressure from environmental agencies, and not for economic gain. Thus the management is taking less interest thinking no-profit issue. Companies are organized around the forward flow of goods.
Financial
…show more content…
Education and training are prime requirement for achieving success in any organization.
Problems with product quality
The product quality is not uniform in reverse logistics compared to the forward logistics where the product quality is uniform. Customers usually expect the same level of quality of product from the manufacturer regardless of the nature of the returned product. The returned product quality could be in any range; like that it could be faulty, damaged, or simply unwanted by the customer. Thus, there could be variations in the pricing of the products. Lack of appropriate performance management system
Measuring and managing the true performance of reverse logistics is very hard. Internal and operational metrics are in place, but metrics for end-to-end process performance are seldom used or available. If the firms take action linking their performance measurement system to their reverse logistics practices, they will be in a better position to succeed in their endeavour.
Inadequate information and technological
In addition to, the development of technology was one of the problems of for the workers around the company, which are everything substituted by the machines instead of
4. The Micro Environment – ??? To determine the best strategic position, it would be essential to understand the landscape of UPS is situated in. Hence, Porter’s five forces analysis is performed to comprehensively discuss the logistics industry in the European Union.
Inbound Logistic Process Target is a retail store selling goods worldwide through its retail stores located at various part of the world. It purchases goods from its suppliers and ship those goods to its distribution centre and retail outlets. The continuous supply of merchandise is a tough job as the Global purchase is a difficult process to manage when; sources of supply, regional economies, and governments change in international purchasing can lead to disputes and
It is imperative to understand the current conditions of what materials are candidates for return, compared to the performance level of returns achieved each day. The delta between the identified material returns and the actual returns will provide information for goal setting. Additionally, with the transfer of raw materials into the warehouse, there must be a transaction to receive it into inventory and distribute it to the appropriate location. At that point, the process will be complete for the appropriate accounting of the materials, creating availability for consumption at the next production demand. The data collected will be influential in developing a robust procedure for each assembly line to follow in a consistent manner.
On one hand, new technology allows for people to grow because of the immediate responses that they provided to the user. These immediate answers that are given to the user allows for them to succeed because the answers allow them to understand how they are wrong and how they can succeed in the future. Gilbert explains in his essay how when people seem to fail in the world we often accept a “fake explanation [which] can cause us to tuck an event away and move along to the next one” (142). However, with the impact of new technologies, these “fake explanations” are few and far between since computers now give an actual explanation for the failure. With computers and technology advancing at a fast rate, these “false explanations” which could be given are beginning to die out.
This reduced the company’s inventory costs by over 20% which improved delivery
Here 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.
The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.
Technology has made people dependent on it, gullible, and lose verbal skills, which has led to a naïve world. Getting information has never been easier than it is today. People simply need to type into Google what they wish to know, and there is the answer. They now rely on technology to help get information easier. Before technology became what it is today, finding an answer would require research and thinking for oneself.
In the early 2000s, The Boeing Company faced many challenges with increasing competition in the commercial aircraft market. To remain competitive, they began the development of their 787 Dreamliner aircraft using an unconventional approach in terms of supply chain management. The historical approach that Boeing used on previous aircraft designs required Boeing to procure raw materials and subassemblies from several different suppliers and manufacture the final assembly in house. Dreamliner sought out to be the first of Boeing 's kind to outsource 70 percent of its major subassemblies under a Partnering for Success initive (5) , leaving Boeing to assemble the final assembly performed in-house. Build airplanes the same way the automobile industry
BMW The 7-Series Project (A) AGENDA 1) Abstract/Executive Summary 2) Problem Statement 3) Case Analysis 4) Alternative Solutions 5) Recommendations 6) Limitations 7) Appendix Abstract/Executive Summary • To explore the BMW decision about how to manufacture the Prototype vehicles. • Previously, BMW prototypes were handcrafted at the company by skilled artists. • There is a proposal to change the process and make prototypes inorder to better understand the issues that may arise during final production phase.
For HomeHelp, this would be a benefit, as it will be having more working capital available for it. In the short term, both the companies would have to spend money on the technology to implement the time-based logistics. In the long term, there would be costs associated with the time-based responsive logistics on an ongoing basis as it results in frequent smaller shipments rather than consolidated larger shipments. It also entails costs of regular upgradation of technology needed. This could result in an increase in costs in the short term and long term for both companies, which have to be balanced with the advantages gained (Donald J. Bowersox, 2002, p. 40).
Process Drive to achieve functional excellence and integration across all major processes. - Core supply chain processes driving the business. - Best in class approaches to our core processes (manufacturing, integrated demand planning, procurement, cycle-time, compression, dynamic deployment) - Bulk linkages with suppliers and customers. C. Organization Providing the critical success factors of cohesion, harmony and integration across organization entities - Level of cross functional integration is required to manage core processes effectively - Leverage cross-company skills and abilities - Performance measurement and reporting structure help to achieve objectives D. Technology Empowers the Supply Chain to operate on a new level of performance and is creating clear competitive advantages for those companies able to harness it.
Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way
Modern Stores The interviews were taken and the data were collected and we had also taken help from other articles from academic journals for an overview over the data. At the later step, we wanted to understand that what actually influence the performance of the Cold Chain Logistics. And regarding the elements which is able to manage the Cold Chain Logistics most effectively in a company.