ESSAY

Essay

Essay: Reverse Logistics

Introduction

The Logistics concept has evolved over time gradually becoming the Supply Chain as a result of manufacturing companies seeking to coordinate with suppliers, wholesalers, retailers and clients in order to maintain long-term competitive advantage, This improvement in market range has been crucial and indeed the management of the company intends to continue its interest in these new markets, neutralizing any potential competition by basing its strategy on having flexible manufacturing processes as well as obtaining all the possible certifications connected with the safety and quality of the products manufactured.

Background

Market globalization and the rapid expansion of information and communication technology are drastically transforming the new business environment. These changes and advances in technology have created an intolerable situation for everybody involved in management. The work of handling these returns is called reverse logistics. The Reverse Logistics Association, the industry?s leading trade group, defines reverse logistics as “all activity associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity, thus saving money and environmental resources.”

Managers in all organizations must now seek to achieve maximum competitiveness in performing all business processes. In order to do this, they must constantly evaluate the technology on offer and try to achieve performance improvements with what is usually a less than adequate internal skills base. In these circumstances, the use of full-time external specialists through outsourcing has become an important solution to the problem of maintaining competitiveness. (Heywood J. Brian, 2001 Pp. 22)

Consequently, the characteristics and the quality of a product or service sold to a customer largely depend on several firms involved in its creation. This brought about new challenges for the integration of legally separated firms and the coordination of materials, information and financial flows not experienced in this magnitude before. A new managerial philosophy was needed - Supply Chain Management. Supply Chains are a hot management topic. Eyes are opening to a more global view of end-to-end material, information, and financial flows. (Monczka, R., Morgan, J., 1997)Chapter 1 provides the fundamental concepts of supply chain management and establishes the impact that supply chain decisions have on the performance of a firm.

Definition Analysis Supply chain management can be viewed as a pipeline or conduit for the efficient flow of products/material, services, information and financials from the supplier's suppliers through the various intermediate organizations/companies out to the customer's customer or the system of connected networks between the original vendors and the ultimate final customer (Monczka, R., Morgan, J., 1997) Managing Supply Chains, a Logistics Approach”Supply chain is an extended undertaking that crosses the boundaries of individual firms to span the related activities of all the companies involved in the total supply chain.

This extended undertaking should attempt to execute or implement a coordinated, two way flow of goods/services, information and financials (Monczka, R., Morgan, J., 1997 Pp. 15). The three indicated flows at the bottom of the illustration are very important for the successfully management of a supply ...