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REVERSE LOGISTICS

By

Alisha Mahwala - 8
Atman Shah - 26
Chaitanya Bhusari - 28
Karan Doshi - 57
MEANING

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
REASON FOR RETURN

 Unsold goods

 Product recall

 Administrative mistakes

 Damage product/package in delivery

 Quality issues
REVERSE LOGISTICS FLOW

AUTHORIZATION RETURN RECEIVED

DISCREPANCY
HANDLED

CREDIT ISSUED DISPOSITION

REPLACEMENT
REPAIR
SHIPPED

REPAIR
SHIPPED
CHARACTERISTICS OF REVERSE LOGISTICS

 Diversified sources

 Complicated return processing

 Complex cost structure


REASONS TO RE-ENGINEER
REVERSE LOGISTICS MANAGEMENT SYSTEMS

 Processing cost, obsolescence cost have increased

 Importance of after sales service

 Loss of potential customer


STRATEGIES FOR SELECTING
A THIRD PARTY VENDOR

 Analysis your return process and the reasons for


return

 Develop details of current returns processing costs

 Analyze customer expectations in terms of speed


and issuing credit

 Resalable returns to fill customers orders


 Determine requirements, functions and business
metrics

 Evaluate all options before selecting third party


vendor

 Compare business requirements against all viable


options

 Evaluate all alternatives


SOFTWARE / SERVICE VENDORS

 ERP

 Module

 BoB

 3PL

 OEM/ODM vendors

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