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7.2 Small group discussion - Why is reverse logistics used?

Reverse logistics represents the other side of the coin of supply chain management. As you have learnt, there are a number of reasons to implement
a reverse logistics process, as well as a number of different concerns in this exercise.

Find and research a significant example of a reverse logistics operation in your context. If this is difficult to find, feel free to take one of the examples
mentioned in the set of notes. Discuss with your fellow students what the scenario highlights about the processes of reverse logistics. Use the
following questions to guide the discussion:

• Why was reverse logistics used in your example?


I have researched Amazon.
A Customer ordered a few items and one of the items was not what the customer thought it would be and decided to return this
item, a return can be requested on Amazon's website and a prepaid shipping label is sent to the customer, item is packed, label placed
on the package, the customer drops off the package at a UPS store, the package is shipped to Amazon, then sorted and inspected and then
depending on the condition of the item decisions are made to either, resale, refurbish, recycle or donate.

• Was it the best approach to reduce waste and improve sustainability, and why?
Yes, steps are followed to determine the best process for this returned item, can it be resold, repaired, recycled or donate to
charity.
They take all options into consideration before carrying out the final decision.

• How could the organisation have improved its reverse logistics processes?
Warehouse automation - when machines are sorting and inspecting items, this could improve efficiency, accuracy, and speed up the
processing time in the warehouses.
Self-service returns on your mobile - this will be faster, and the client can track the status of their return, and the managing of refunds would
empower the customer and they can see constantly where the process is which gives the customer more control.

• How did its reverse logistics processes affect the management of its supply chain?
I Would say the refurbishment and resale aspect has affected their supply chain positively because refurbishment and then reselling
items reduces the cost and need for new raw materials and manufacturing of this product.

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