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Supply chain management
REVERSE LOGISTICS
Objective
To make RL (Reverse Logistics)
•

efficient and cost effective for Indian

Company
•Identifying the drivers of a growing
market
for
recycled
and
remanufactured products.
•Creation of economically efficient
p ro d u c t re tu rn .
Logistics Channels
Forward Logistics: movement of
•

goods from source to the point of

consumption
Reverse Logistics: return goods to
•

supplier

Reverse Logistics
More complicated than forward logistics
because:
2.Presence of multiple reverse distribution
channel
-direct return to manufacturer
-Indirect return to repair facilities
6.Individualized returns with small
quantities.
7.Extended order cycles associated with
p r o d u c t e x c h a n g e s .
Background
•No Indian manufacturer across any
sector has ever claimed
responsibility for their faults.
•Few companies in India has come
forward to accept that they have
found some fault in their own
product.
•Growing environmental and

economical concern.
NOKIA
August 2007
•

Nokia had issued an advisory

about faulty batteries in some of its
phones. It said 46 million Nokia-
branded BL-5C batteries were
vulnerable to a short circuit that
could cause them to overheat while
recharging, and offered to replace
them for customers who are
c o n c e r n e d .
SONY
4 Sep, 2008
•

Sony says it is recalling 440,000

units of ‘Vaio’ laptop computers
worldwide due to faulty parts that
could trigger overheating.

APPLE
•20 Sep, 2008
Apple Inc said some power
adapters for the latest iPhone can
break and lead to the risk of electric
shock and urged users to exchange
them.
Purpose of RL
•Unsatisfied customer

•Environmental goals

•Lack of Non-renewable Resources

•Defects in product
Key challenges
•Localization and estimation of
potential returns
•Demands for new and reusable
products.
•Probability that a returned product be

in a specific state

Recovery options
[4]

•Repairing
•Refurbishing

•Remanufacturing

•Cannibalizing

•Recycling

•Disposal
Recovery paths
M
R
C
Manufacturer collects from consumer, retailer is
not involved.
[8]
M
R
C
Retailer collects from consumer and
manufacturer buys-back from retailer

Reverse Logistics
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Reads:
1,034

Uploaded:
02/15/2009
Category:
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Rated:
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(4 Ratings)
supply chain management
reverse logistivc
Science & Engineering
Presentations & Spreadsheets
supply chain management
reverse logistivc
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sapi5ume
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Done Logistics Oy
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Reverse Logistics
You could save money
if you manage your returns better
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