Introduction

² Traditionally, reverse flows were not viewed as adding value for customers or revenue for the manufacturer or producer. ² Information and financials (cash) are also an important dimension of reverse logistics and closed loop supply chains. ² Global supply chains present challenges and opportunities for reverse flows Including green laws.

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² Retailers lose 3 to 5% of gross sales to returns accounting for about 4. ² Internal returns are about double the counter sale returns.Importance and magnitude of Reverse Flows ² Transportation companies and warehouses have dealt with returns.5% of the cost of logistics. University of Management and Technology 2 .

damaged. or near the end of their shelf life but still have some value for salvage or resale ² Products that are unsold from retailers. but can be repaired or remanufactured and resold ² Products that are old.Categories of Reverse Flows ² Products that have failed. obsolete. usually referred to as overstocks that have resale value ² Products being recalled due to a safety or quality defect that may be repaired or salvaged University of Management and Technology 3 . are unwanted. or defective.

computer inkjet cartridges. containers. etc.Categories of Reverse Flows ² Products that can be recycled such as pallets. ² Products or parts that can be remanufactured and resold ² Scrap metal that can be recovered and used as a raw material for further manufacturing ² Disposal flows University of Management and Technology 4 .

recycling. ² Closed loop supply chains ³ Designed and managed to explicitly consider both forward and reverse flows activities in a supply chain. refurbishing. or scrap/salvage. ‡ Reserve logistics involves the processes for sending new or used products ´back up streamµ for repair. ‡ Explicitly designed and managed for both flows University of Management and Technology 5 . reuse.Reverse Logistics Systems versus Closed Loops ² Reverse logistics ³ The process of moving or transporting goods from their final destination for the purpose of capturing value or for proper disposal. resale.

Hurdles & incentives in Reverse Logistics No awareness of current cost associated with reverse Logistics Poorly defined processes Lack of system support Paperwork Customer retention / satisfaction Cost savings in the long run University of Management and Technology 6 .

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