REVERSE LOGISTICS

Reverse Logistics

Abstract

Reverse logistics includes all of the activities that are mentioned in the definition above. The difference is that reverse logistics encompasses all of these activities as they operate in reverse. Therefore, reverse logistics is: The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.

Reverse Logistics

Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Reverse logistics is more than reusing containers and recycling packaging materials. Redesigning packaging to use less material, or reducing the energy and pollution from transportation are important activities, but they might be better placed in the realm of "green" logistics. If no goods or materials are being sent "backward," the activity probably is not a reverse logistics activity. (Tsoulfas 2008)

Reverse logistics also includes processing returned merchandise due to damage, seasonal inventory, restock, salvage, recalls, and excess inventory. It also includes recycling programs, hazardous material programs, obsolete equipment disposition, and asset recovery.

Awareness of the art and science of logistics continues to increase. Additionally, great interest in reverse logistics has been piqued. Many companies that previously did not devote much time or energy to the management and understanding of reverse logistics, have begun to pay attention. These firms are benchmarking return operations with best-in-class operators. Some firms are even becoming ISO certified on their return processes. Third parties specializing in returns have seen a great increase in the demand for their services.

In addition to this research project, several other academic endeavors focusing on the reverse flow of product are in process. Leading-edge companies are recognizing the strategic value of having a reverse logistics management system in place to keep goods on the retail shelf and in the warehouse fresh and in demand. (Daniel 2009)

Reverse logistics is double connected with environmental management issues.

Due to its nature, it aims to the recovery of used products and materials with obvious environmental gains.

As a logistics operation, Reverse Logistics is subjected to environmental performance measurements for the identification of the associated impacts on the environment and the opportunities for improvement.

It is important to point out that in addition to the environmental ones, there are also other criteria, such as social, political and technical, which are sometimes contradictory with each other that have to be integrated for effective decision-making.

The extension of the traditional supply chain may help companies meet market and customer expectations, legal and regulatory requirements, commercial and economic demands.Suppliers, manufacturers and importers together with customers have a role to play in activities related to the recovery and/or proper disposal of products that have completed their life cycle and of the packaging materials associated with them.Every product generated, transported, used and discarded within the supply and the reverse chain causes a certain ...