Reverse supply chains differ from forward supply chains in information flow, physical distribution flow and cash flow. *Isi artikel merupakan pemikiran penulis dan tidak selalu mencerminkan pemikiran atau pandangan resmi Supply Chain Indonesia. Soon you may need to give just as much thought to your reverse supply chain. Reverse Logistics Logistics Sustainability Transportation Management 163 . Reverse Logistics and Supply Chain Challenges. With a new demand-planning and sourcing infrastructure in place, ModusLink focused on improving customer service levels within the client’s after market repair-service business by driving process efficiency and distribution improvements. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Reverse logistics is the process of moving products backward through the supply chain. 82 0 obj <> endobj With plenty of companies, supply management success is calculated only up until the product is delivered to the end-user. Unfortunately, this doesn’t always account for all situations. And therefore, it becomes even more interesting to understand the practical details of this process. Once collected, products need to be transported to facilities for inspection, sorting, and disposition. With both forward and reverse logistics in place, your supply chain system will become more transparent throughout the entire network. There is another extension to Supply Chain Process called as Reverse Logistics. In other cases, companies are taking the initiative, seeing opportunities to reduce their operating costs by reusing products or components. In addition, overall efficiency for supply chain related processes was improved by approximately 15 percent. For instance, Tom Giovingo, executive vice president at Wauconda, Ill.-based Fidelitone, an outsourced logistics and supply chain services provider, suggests that the reverse supply chain is frequently much more labor-intensive than the forward supply chain. However, on the general basis, there would be 5 distinctive processes in a reverse supply chain system. There is no one “best” design for a reverse logistics network; each has to be tailored to the products involved and the economics of their reuse. The technology dramatically reduces inspection and disposition costs, enabling the company to make a profit on the remanufactured tools. In many cases, it will make sense to outsource the logistics to a specialist. In general, a business should seek to make disposition decisions—based on quality, product configuration, or other variables—at the earliest possible stage in the returns process. Reverse supply-chain 1. If it’s the latter, the company should expect to make heavy investments in consumer education and other marketing efforts. Forward Supply Chain . Most commonly today, companies are using third-party service providers (3PLs) to partner with in their reverse logistics supply chain. All these processes require the product travel in reverse through your supply chain network. inherent challenges that a reverse supply chain faces, such as managing customer expectations on returns policies, partnering with other players in the supply chain and handling the mounting pressure from regulatory authorities. Beginning in 2003, for example, European Union legislation will require tire manufacturers operating in Europe to arrange for the recycling of one used tire for every new tire they sell. For instance, Kodak remanufactures its single-use cameras after the film has been developed. ù?=›� 誇`÷00R�üÏÀ8ÿ@€ ÅúE "Reverse logistics is an area of the supply chain that has been relatively ignored until recent years, as far as costs are concerned," says Bill Wascher, president and CEO of SEKO Worldwide. Reverse Solutions is trusted by the worlds top brands to implement efficient, sustainable solutions that drive innovation. Dive Brief: With the average retailer realizing 30% of annual sales during the holidays, coupled with a 24% return rate, technology now plays an important role in minimizing these reverse supply chain costs, Retail Info Systems News reported last week. Automatic consolidation of data from partners and systems. xÚbbd```b``–‘¥ ’é"ˆdùŸQ‹X‚E��Ev€Ù×Á$˜|&g€ee@$W$ˆÖ ‘¼M ²Z,6Gã'�dtN±�À¤Ä Basically, reverse logistics in the supply chain revolves around dealing with end-of-life, malfunctioning, or hardware upgrades. However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverse logistics). Despite a growing body of research in the area of reverse supply chain, industries are reluctant to adopt best practices of the reverse supply chain. The following are common types of reverse logistics. Better Reverse Supply Chain Process Transparency. Reverse logistics is for all operations related to the reuse of products and materials. May 12, 2017. companies must also learn about the primary components of the reverse supply chain management system. And, as with the conventional forward supply chain, the distribution channel has the opportunity to provide this support. Gain scale & agility in your reverse supply chain. Even with reverse supply chains, forward thinking pays big dividends. In addition, for many organizations, reverse logistics (also known as returns management) can represent a significant source of untapped profitability. Reverse Logistics is as important to a business’s bottom-line as the usual management of procurement, logistics and spend analysis. With plenty of companies, supply management success is calculated only up until the product is delivered to the end-user. It may also have to meet stringent environmental standards. Otherwise, companies may find themselves flooded with returned products of such variable quality that efficient remanufacturing is impossible. Reverse logistics is the term used to describe the way a company handles products that get shipped backwards through the supply chain. This text provides general information. A reverse logistics supply chain management strategy is critical to maintaining healthy inventory turn and operating expenses. Before setting up reverse flows, companies need to evaluate the supply chain within which the business operates. The Supply Chain Minded community aims to inform and connect professionals active in Supply Chain, Purchasing, Manufacturing, Warehousing, Transport, Distribution; Reverse Logistics, Service Logistics, Lean & Six Sigma, 3PL. Rite Aid has a partnership arrangement with Inmar to assist in these areas as their 3PL. The rise in e-commerce transactions, as well as flexible return policies and strict environmental regulations, are shifting the focus of companies to their reverse supply chain. The testing, sorting, and grading of returned products are labor-intensive and time consuming tasks. The most common scenario in which reverse logistics come into play is when a customer wants to return an item. By Max Moriarity, Consultant, Supply Chain Operations Practice Wednesday, August 22, 2012 . Depending on the volume, a separate reverse supply chain may be established. Reverse supply (also referred to as reverse logistics) stands for all operations related to the reuse of products and materials. If a company plans to sell a recycled product, it first needs to determine whether there is demand for it or whether a new market must be created. Reconditioning and remanufacturing processes tend to be much less predictable than traditional manufacturing because there can be a large degree of uncertainty in the timing and quality of returned products. Bosch is a good example. Unter der Bezeichnung Reverse Logistik (englisch Reverse Logistics) oder auf Deutsch Rückführungslogistik, Umkehrlogistik, Rücknahmelogistik werden alle logistischen Prozesse betrachtet, bei denen Güter vom (End-)Kunden ausgehen und wieder in der Lieferkette zurück laufen. Adopting an excellent method for your reverse supply chain creates ways to deposit … Returns are becoming one of the greatest supply chain challenges companies face today. Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. Your entire supply chain will benefit from partnering with XPO. "As the supply chain assumes a more important role in a business enterprise, companies are scrutinizing logistics costs to eliminate redundancies, and returns. Effective Reverse Supply Chains With creating the product being only a small portion of the business, many businesses invest time into making methods for an effective supply chain . How Do Reverse Logistics Work? Thus, reverse logistics is important for use in advanced green supply chain management concepts and practices. This area centers on error correction, upgrades in hardware and end-of-life of the products. These processes are clearly mentioned in the Reverse Supply Chain vs. Supply chain executives measure the effectiveness of that flow using the on-time delivery (OTD) metric. Harvard Business Publishing is an affiliate of Harvard Business School. A Huge Supply Chain Challenge. E-commerce as a whole has been designed as a user-first experience, with an order-management system doing much of the heavy lifting for most brands. It’s the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it. xÚÔUÛn7ı>ÚÜåuH�Y�mulDi\”àÃFb¡ºAZÑß÷WvÜ4®ıZ@ÔPœáápæJI/¤P2…�ŒB“JIa”�UÂk¸•†�°FÇë–cyâø‘P ¡_ŒoˆLÍh8. But the process can be streamlined if a company subjects the returns to quality standards and uses sensors, bar codes, and other technologies to automate tracking and testing. Unfortunately, this doesn’t always account for all situations. %PDF-1.5 %âãÏÓ Reverse logistics is for all operations related to the reuse of products and materials. 120 0 obj <>stream That can eliminate many logistics costs and get remanufactured products to market faster. The majority are handled by Genco (which Fedex recently acquired). JULY 28, 2020. For companies to remain competitive and compliant, it has become a priority for businesses across industries — from retail to automotive to electronics — to update their reverse supply chain … Aberdeen's research identifies senior-level oversight as "the top strategy for improving reverse logistics" among best-in-class companies, with 92 percent having a senior service director or executive that oversees all aspects of the return, exchange, repair and refurbishment of products and parts. Reverse logistics has become even more important with the arrival of the e-commerce era. Reverse logistics — defined as the return/exchange, repair, refurbishment, remarketing and disposition of products — has become an important way for companies to improve visibility and lower costs across the supply chain. Reconditioning. For many organizations, reverse logistics is a daunting task. It builds sensors into the motors of its power tools, which indicate whether the motor is worth reconditioning. Reverse Logistics Companies: Using Metrics to Track Performance. Sid Brown, the CEO of NFI, a global supply chain solutions company with locations across North America, said one of the biggest problems with the reverse supply chain is a shortage of labor. This is the reverse of the traditional supply chain movement of goods from vendor to customer. endstream endobj Distribution and Sales. Reverse logistics is a value-added process that addresses how a company receives items back from customers. All rights reserved. Whether a company is establishing a reverse supply chain by choice or necessity, it will face many challenges. Customer returns are a form of reverse logistics, but so is the unsold merchandise sent back from a store, among other scenarios. Inspection and Disposition. Whether your company establishes a reverse supply chain in-house or coordinates with an external provider, there are several benefits it can offer, including the ability to: Mitigate your losses: As a business, you want to maximize your profits and decrease your losses, and you can do that with industry-best reverse supply chain management practices. Companies may face hurdles such as complying with policies regulating the transport of waste as well as the unevenness of quality and quantity in return loads. Whether a company is establishing a reverse supply chain by choice or necessity, it will face many challenges. Supply chain and logistics news. What is a reverse supply chain? Dabei wird die Übersetzung des englischen Begriffs unterschiedlich verstanden und verschiedene Denkschulen konkurrieren miteinander. Bulky products like tires, for instance, will require very different handling than small but fragile products like cameras. A rather complex process, reverse logistics is the exact opposite of forward logistics. California Management Review, Vol. Reverse Logistics. "So we often are working with the same companies on both their forward and reverse supply chains." The Supply Chain Trends to Know in 2020 Download White Paper Real-Time Analytics Will Help to Better Answer, What Is Reverse Logistics’ Value. • Cognizant 20-20 InsightsReverse Supply Chain: Completingthe Supply Chain Loop Executive Summary Reverse Supply Chain Traditionally, businesses have concentrated on Reverse supply chain refers to the movement of improving the forward supply chain for their goods from customer to vendor. Copyright © 2020 Harvard Business School Publishing. endstream endobj 83 0 obj <>/Metadata 44 0 R/Pages 80 0 R/Type/Catalog/PageLabels 77 0 R>> endobj 84 0 obj <>/ColorSpace<>/Font<>/ProcSet[/PDF/Text/ImageC]/ExtGState<>>>/Type/Page>> endobj 85 0 obj <>stream Reverse logistics is any process that involves moving things from the customer back to the producer. The process for how a company handles that product is an example of reverse logistics. The quality, quantity, and timing of product returns need to be carefully managed. After all, most supply chains are created to get products out the door, not welcome them back in. Reverse Supply Chain / Reverse Logistics Definition. Supply chain visibility is also essential for any pharmaceutical supply chain including reverse logistics, as counterfeiting and lost or stolen products continue to be a major concern for this industry. For example, they make product design and manufacturing decisions with eventual recycling and reconditioning in mind. Companies are using reverse supply chains as integral parts of new businesses. These processes can include repair, warranty recovery, redistribution, value recovery, end-of-life recycling or any combination of these activities. NEW DELHI: With the nationwide lockdown disrupting the dispatch of goods by FMCG companies and suppliers, some retailers have resorted to the reverse supply chain mechanism as a stop-gap procurement arrangement. Better Reverse Supply Chain Process Transparency. An often missed and a key area is the reverse supply chain (reverse logistics). ModusLink continuously monitors the supply levels of all these elements at the PC manufacturer’s central European hub and replenishes stock on a daily basis to ensure that consistent inventory levels are always on hand to meet the forecasted demand. … For instance, Kodak remanufactures its single-use cameras after the film has been developed. Tell us your most challenging logistic requirements, and we'll engineer sophisticated solutions using our intelligent technologies. Reverse Logistics has become a critical component of supply chain management due to its impact on cost, sustainability, branding, customer service, and customer loyalty. Companies must plan and execute strategies to manage products beyond manufacturing and the final sale. It will have to educate customers and establish new points of contact with them, decide which activities to outsource and which to do itself, and in general figure out how to keep costs to a minimum while discovering innovative ways to recover value. This will ensure to the better management and control of all the stages of waste handling process. Reverse Logistics 163 . We get it - sometimes it comes down to “Buy or Build”. Asset Recovery Growing According to Dr. Dale Rogers, professor of logistics and supply chain management at Arizona State University, reverse logistics is going to become increasingly popular with logistics managers seeking a process to achieve proper disposal of excess inventory. In general, the companies that have been most successful with their reverse supply chains are those that closely coordinate them with their forward supply chains, creating what we call a closed-loop system. Strategic planning helps to minimize waste and risk, while tactical implementation of technology can enhance existing systems to edge out the competition. The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid- and senior-level managers across a broad spectrum of companies and industries. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Improved reverse supply chain visibility, increased productivity, and greater responsiveness to customers. Clearly, more companies need to go back to basics and ask what is reverse logistics’ role in the top trends of the supply chain? The choices in the supply chain are endless for company owners such as routes, item manufacturing or which provider to use to manage the entire pipeline. Key insights about reverse logistics process flow, 3PL companies, supply chain management, transportation and logistics, and logistics analytics are covered in this blog. Potential customers for remanufactured products or components include not just the original purchasers but also new customers in different markets. Reverse Supply Chain / Reverse Logistics Web Resources * Reverse Supply Chain / Reverse Logistics Print Resources * Reverse Supply Chain / Reverse Logistics References (4 of up to 20) * Blackburn, J., Guide, V., Souza, G. and Wassenhove, L. (2004) Reverse Supply Chains for Commercial Returns. Supply Chain Logistics Solutions From e-commerce in the virtual space to traditional brick and mortar - our suite of logistics services is comprehensive. This is the reverse Cerasis. Effective and efficient reverse supply chain implementation may help in managing these returns along with the end of life product returns. A synchronized supply chain to now include forward traditional logistics, inbound logistics, and reverse logistics. By embracing reverse logistics strategies including returns management; product repair and refurbishment; recycling of goods and materials; and proper disposal of materials from unwanted goods, companies can move the sustainability needle while also cutting costs and reaping products … The solution for developing a reverse supply chain is in partnering with companies that specialize in reverse logistics operations. That’s exactly what we bring to the table at Reverse Solutions. As Supply Chain Activities are evolving and partnering changes in business models, the focus and activities are not restricted to the management of raw materials and finished goods from point of origin from the vendors to plants and further on to the end customers. Efficiency is a vital aspect to successful supply chain management in the food and beverage industry, particularly when perishables are involved. To manage reverse supply chain, companies need sophisticated information systems. Reverse Logistics Supply Chain reverse logistics technologySupply chains face an ongoing crisis with the threat of rising demands across consumers and business-to -business purchasers. Reverse Supply Chain Management -explore the feasibility to incorporate forward supply chain strategy into the reverse supply chain in the electronic industry . Reverse supply chain refers to the movement of goods from customer to vendor. If you’re going to setup up, operate, and innovate a top-notch reverse logistics pipeline it takes skill, knowledge, and capital investments. 106 0 obj <]/Info 81 0 R/Filter/FlateDecode/W[1 3 1]/Index[82 39]/DecodeParms<>/Size 121/Prev 542227/Type/XRef>>stream In addition, the forward and reverse flow of materials, information, human resources, and finance occurs among different stakeholders in closing the loop of supply chains. … One of the most complicated and poorly understood terms – reverse logistics (RL), is also one of the toughest nuts to crack. The majority of companies in the food industry don’t have the resources needed to set up a reverse supply chain in order to reuse packaging materials, separate undamaged products from damaged products in a load, or repurpose unsold food for animal feed or … xÚb```¢LVÉıB ÄÀeaàXÈ ÉàĞx‘ß©€�áRâj¾†�s3²3;'€T)]c;¶ëæ75Ë…_€,�-f¦×8Ú×®Ûᦛؗ{€�£ƒ�Á£££�¡£�9££ƒ�ˆÅ2€üĞ�tS�ª1°Ç i1 –ÙÀ¸‰A€A�É›áC>S;£#£*c£)Ã3†,�å‚e\*9ÚÕÜÖ;¬ıÖùœ§˜õÛ?¦kP�h3°7>Ä«€X��ÃÙÂg\` @ I ACKNOWLEDGEMENT I would like to express my enormous gratitude and appreciation to all those who supported me and contributed to complete this thesis successfully throughout the entire research process. Including Returnly.com, LogiNext, Optoro etc Our research suggests that this task—retrieving the used product—is key to creating a profitable chain. Online ordering has been made a simple, one-click process. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Learn how Hollingsworth's solutions in warehousing, fulfillment and distribution, packaging, just-in-time delivery, kitting, program management, reverse logistics, and transportation can optimize supply chain management for the food and beverage industry. Companies may capture value from returned products by extracting and reconditioning components for reuse or by completely remanufacturing the products for resale. The company has made their supply chain work for them with fewer links in the chain, strategic vendor partnerships, a cross-docking inventory tactic, and technology innovations to cut costs. A successful business selling power hand tools that have been remanufactured as much thought to your reverse supply will! Your supply chain within which the business operates and cash flow sustainability can be found in logistics... Task—Retrieving the used product—is key to creating a profitable chain the conventional forward supply chains in information flow physical! 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