REVERSE LOGISTICS

Reverse logistics returns value from the market to the source and cares for the environment, but it is also expensive and could result into bad image for the company if not properly managed.

Introduction1

Discussion2

Reverse Logistics2

Why reverse logistics?3

Legislation4

Prevention5

Recycling5

Disposal7

Reverse Logistics Activities8

Elements of management in reverse logistics8

Input Filtering8

Cycles of time8

Information systems of reverse logistics9

Returns "ZERO"9

Repair and reform9

Recovery of property10

Negotiation10

Financial Management10

Out sourcing11

Case Studies11

Toyota's Massive Recall13

The Tesco Horse meat scandal13

Key factors for success14

Management and Control14

Performance Indicators14

Financial aspects14

The reverse logistics and recycling14

Conclusion15

Reverse logistics returns value from the market to the source and cares for the environment, but it is also expensive and could result into bad image for the company if not properly managed.

Introduction

In recent years the strategies aimed at minimizing environmental impacts have gone from being reactive to preventive strategies and considering the total life cycle of products and processes. The concept of full life cycle plays a prominent role. Specifically, in relation to waste, management has developed new concepts and markets known as the recycling society, whose aim is to prevent uncontrolled disposal and the consideration of waste as raw material usable (Patki & Mahesh, 2010, pp. 22-32). This trend is creating new markets demanding new standards of quality, transparency, openness and organizational mergers and acquisitions among others. This new recycling society has fostered the development of new products and processes considered from the early design stage preventive aspects of their environmental impact to considering the rest of later stages in their life cycle as, potential reuse, incorporating improvements that minimize associated pollutant load, additional use, easy disassembly, etc (Patki & Mahesh, 2010, pp. 22-32). For companies like Toyota, Daimler Chrysler or Johnson and Johnson, pulling back the entire shipment because of known errors proved to be associated with huge costs, but the companies effectively managed the reverse logistics process, as they aim to provide services to the customer in a satisfactory manner (Patki & Mahesh, 2010, pp. 22-32). Reverse logistics has been playing a vital role in the recent times as it has helped the companies play an active role in being a member of the corporate social responsibility sector of the industry today (Patki & Mahesh, 2010, pp. 22-32). This helps the companies to contribute towards the development and betterment of the society by effective management of waste and disposal and taking corrective actions if errors are found or anything may prove to be harmful for the customer. Companies today have realized the importance of reverse logistics although huge costs are associated with the concept, but they ensure that they serve the society in the best possible manner (Patki & Mahesh, 2010, pp. 22-32). For this, various departments have been developed whose function is to control logistics and reverse logistics so that the communities are served better. The following paper discusses the view that how reverse logistics plays an important role for the organization and how it is associated to huge costs.

Discussion

Reverse Logistics

To define reverse logistics, it is necessary to remember the meaning of logistics, since practically the same, only in ...