Reverse Logistics In Supply Chain Management

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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

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