The problem essentially revolves around the tradeoff between cost and responsiveness in designing an rl network for an ecommerce firm. The function has been around since the phoenicians began shipping amphorae of wine to rome in 1,500 bc the movement of product invariably results in the. In conventional systems of prospect logistics, the flow starts from the raw material provided by suppliers, then manufactured parts and components for assembly of the end product which goes to consumers, and, when fully used can be recycled. International journal of engineering business management. The papers were identified through a searching procedure carried out by using keywords such as closedloop supply chain, reverse supply chain, reverse logistics, product recovery management, remanufacturing, and marketing. Building competitive advantage through innovative reverse. While many retail organizations run bestinclass transportation and logistics systems and processes, some have neglected reverse logistics as a primary focal. In addition, reverse logistics should be properly managed just as forward logistics because it is also a cost centre to the company. Find the ways to economically acceptable model of reverse logistics, focusing on converting waste materials for renewable energy, is the task in progress.
The word logistics has its origin from greek word logistike which means the art of calculating. However, efforts to synthesize the research in an integrated body of knowledge seem comparatively limited. Dowlatshahi, a strategic framework for the design and implementation of remanufacturing operations in reverse logistics, international journal of. The reverse logistics process is illustrated in figure 1. Reverse logistics activities in three companies of the. The impact of reverse logistics on operational performance. Reverse logistics operations are one of the more interesting and significant trends in supply chain management. Reverse logistics is for all operations related to the reuse of products and materials.
The term reverse logistics refers to the return process, whichespecially if it involves crossborder transactionscan get quite complex. Ellrain arizona state university reverse logistics is a process whereby companies can becotne more environmentally efficient through recycling, reusing, and reducing the amount of nialerials used, viewed narrowly, it can be thought of as the reverse. Reverse logistics an overview sciencedirect topics. To achieve this aim, the basic hypothesis is tested. The lack of awareness of benefits of reverse logistics is a major barrier for its implementation. The implementation of reverse logistics rl as a strategic decision has gained significant attention amongst organisations due to its benefits to sustainable development.
The role of reverse logistics in the concept of logistics. Reverse logistics is a poorlyunderstood concept in business, and what is even more poorly understood is the role that technology has in facilitating this important process. Today, the customers have the benefits of greater product variety. Product returns are unavoidable for virtually any online retailer or supplier and providing a quick and efficient way to return and exchange purchased goods is an important way to please customers.
Modeling and analysis of reverse logistics rogers 2012. As a result, this research aims at answering the question as to, to what extent does reverse logistics affect sustainable manufacturing. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Reverse logistics rl is a logistics function focusing on the backward flow of products from customers to suppliers hazen, 2011.
Minahan 1998 estimated that reverse logistics activities constitute between 3 to 4% of a companys total logistics cost. With the proper planning and systems in place, a recall can be managed effectively to mitigate financial and legal risk, as well as prevent irreparable brand damage. The present work is an attempt to design a reverse logistics rl network for an ecommerce firm based on one of the most frequently returned items namely fashion goods. An integrated multicriteria decisionmaking approach for. It is the process of moving goods from their typical final destination for the purpose of recycling, reuse, capturing value, or proper disposal. Brazilian journal of operations production management volume nmero 3 216 pp. Pdf an examination of reverse logistics practices myles. Recovering lost profits by improving reverse logistics, white paper commissioned by ups, october 2015, 4 the reverse logistics and sustainability council identifies different classes of products that require reverse logistics services, including used items reclamation, items unsold by retail outlets unsellable, damaged. Reverse logistics is a component of the supply chain that has been often overlooked, even by large ecommerce retailers. Introduction while the forward supply chain concerns the flow from raw materials to end products and from manufacturer to consumer govindan et al. The reverse logistics process in the supply chain and. Reverse logistics is a broad term referring to the logistics management and disposing of hazardous or nonhazardous waste from pac kaging and products.
American journal of mechanical and industrial engineering. Managing reverse logistics to improve supply chain efficiency. Pdf the benefits of reverse logistics semantic scholar. This paper provides content analysis of scientific literature on reverse logistics. In this whitepaper, weve defined the reverse supply chain process, the steps involved and how it can be used as a. Managing reverse logistics to improve supply chain. The final research paper addresses reverse logistics performance metrics within an organization. Ellrain arizona state university reverse logistics is a process whereby companies can becotne more environmentally efficient through recycling, reusing, and reducing the amount of.
Using such products with an aim to maximize the economic value for the automobile companies reflects the importance of reverse logistics. Dec, 2010 relationship with reverse logistics performance in the areas of two measures, cost effectiveness and process effectiveness. Reverse logistics programmes can result in significant cost savings when the proper systems are put into place schwartz, 2000. Growing green concerns and advancement of green supply chain management. Reverse logistics strategies and their implementations. Reverse logistics, green supply chain, end of life, remanufactured product, deposit system. Most commonly today, companies are using thirdparty service providers 3pls to partner with in their reverse logistics supply chain. The history, evolution, and future of reverse logistics. The study also tries to look at the environmental aspects of reverse logistics. Abstract this paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm. Ernst 2000, reverse logistics involves the return flow, considering either defective parts packages or products returned consumed that should go to a recycling. The relationship between resource commitment and program performance daugherty, patricia. Jan 01, 2014 this paper is aimed at introducing the concept of reverse logistics rl and its implications for supply chain management scm. Factors influencing implementation of reverse logistics.
Feb 05, 2017 reverse logistics is basically a phenomenon which refers to the management of products when they are of no use to the consumers. Research on reverse logistics organization method in express. Mar 05, 2018 logistics management is an integrated part of supply chain management. Reverse logistics is a broad term referring to the logistics management and disposing of haz. Companies and researchers are just beginning to appreciate the important differences between forward and reverse chains, and there is great opportunity to apply modeling methodologies to managing reverse logistics. Reverse logistics gets its name because it is the opposite of forward logistics. Most research focuses only on a small area of reverse logistics network, such as network design, production planning or environmental issues. The improved reverse logistics system is shown in fig. The customers are always at the receiving end because sales are the primary target. Drivers and barriers of reverse logistics practices. The aim of this paper is to understand, types of returns under reverse logistics and to suggest best practices for reverse logistics by which organizational. Introduction there are a few example definitions of the reverse logistics, which are more or less general or stressing some of its function. It has resulted in an increase in unsold products, rate of returns, packing.
Different from sustainable development which is focused on economy, environment and society, circular economy ce puts forward more requirements on the circularity and resource efficiency of manufacturing industry. Rl is a research area focused on the management of the recovery of p. As a research topic, reverse logistics rl has attracted the attention of not only. Introduction product recovery refers to the set of activities designed to reclaim value from a product at the end of its useful life ferrer and whybark, 2000. Jun 20, 2018 reverse logistics deals with value recovery in industrial processes.
Reverse logistics rl is an innovation able to bring about immense benefits for organisations in a wide range of industries through enhancing the performance of supply chain procedures. Jun, 2012 as this article will illustrate, modeling techniques can be helpful in improving the management of reverse logistics as well. In this paper are described that the concept of reverse logistics, the strategic importance of the reverse logistics and reverse logistics in. Other authors have categorized reverse logistics as the second. Until recently, many businesses had the same reverse logistics strategy treat it as a burden and avoid it as much as possible. Reverse logistics reverse logistics, the term was first proposed by stock in 1992 to the u. Reverse logistics is the process of receiving returned merchandise with the purpose of proper disposal or recapturing value. Shifting logistics 1999, and conference sessions bear out austhof, helferich, and otis 1997.
Reverse logistics report, 2018 many retailers and manufacturers ignore the importance of reverse logistics. Reverse logistics areas of activity and reverse steps. The rising impact of reverse logistics on ecommerce. Impact of reverse logistics applications on customer satisfaction. Innovative reverse logistics services combined with these metrics, lead to a more responsive organization. Reverse logistics deals with the processes associated with the reverse stream from usersowners to reusers. They usually emphasize on lastmile delivery, route planning and optimization, and order fulfillment. Exploring the relationship between reverse logistics and. The aim of this paper is to develop a framework which will define the metrics that can help to develop successful reverse logistics operations. This paper will explore emerging trends in reverse logistics and returns management before examining the current role of the postal service in returns and its future opportunities for growth.
The results clarify the main trends in reverse logistics and closedloop supply chain subjects for the journal of cleaner production and the. The motivation of the study is to find which processes in the process industry offer better opportunities to recover value, which would justify further research. The problem essentially revolves around the tradeoff between cost and responsiveness in. Comprehension and implementation of reverse logistics are also connected to the understanding of the life cycle of a product, which is related to the environmental impact assessment referring to a product or service, from the acquisition of raw material to its final.
Rl is a crucial component of green supply chain management gscm as it can help to reduce the waste generated by handling and disposition of returned and used products through employing a range of disposition. The main reverse channels are reuse, remanufacturing, and recycling parts and materials. Rogers and ronald tibbenlembke university of nevada there is a new focus on reverse logistics, as a growing number of articles in the trade press jedd 1999,2000. Introduction the reverse logistics is an actual and very attractive field. Dec 01, 2016 the reverse logistics is a bridge between achieving success and maintaining balance in socioenvironmental issues. The effect of reverse logistics on sustainable manufacturing. Operation of companies, usually based on theories and practice of management, proves that an organization is a complex unit with multilateral interrelations with natural environment. Rubio, s, chamorro, a, miranda, f j 2008 characteristics of the research on reverse logistics 19952005. Reverse logistics is like cleaning up the morning after a big party a mess that no one really wants to face, resulting from things that are left over or illused from the day before the notion of reverse logistics isnt new, of course. As the case study method is an exploratory and descriptive approach that allows indepth insights into the research object yin, 1994, the case study method was used for this study. Impact of technology on logistics and supply chain management rajiv bhandari f303, arenja complex, sector 8, c. Reverse logistics, reverse supply chain, case study research, conceptual development 1. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics.
Carter university of maryland at college park and lisa m. A related definition of reverse logistics emphasizes both the focus of reverse logistics on the backward flow of materials from customer to supplier and the goals of maximizing value from the returned item or assuring its proper disposal rogers and tibblembke 1999. The results clarify the main trends in reverse logistics and closedloop supply chain subjects for the journal of cleaner production and the evaluations reveal some suggested opportunities for new. Research on reverse logistics organization method in. Ellrain arizona state university reverse logistics is a process whereby companies can becotne more environmentally efficient through recycling, reusing, and. In this paper the reverse logistics process is discussed is brief. Ibima publishing journal of supply chain and customer.
In attempting to better manage the constant flow of returned goods, manufacturers have identified target. These entities can offer flexible capacity, expertise in the regulatory environment, and the technology support to take on the complexity of handling multisku reverse logistics. Reverse logistics is an integral component of the supply chain and manufacturers have come to realize that an effective reverse logistics program is an important and strategic part of their business profitability and competitive position. These activities management calls as reverse logistics. Council of logistics management council of logistics, management, clm, a research report. Reverse logistics practices have been in existence for a long time, especially in the automotive industry, where manufacturers try to recover value from recycling car parts. Best practices for reverse logistics management by varun. It implies positive effect of reverse logistics on sustainable manufacturing the theoretical as pact hypothesis. Schematic representation of the direct and reverse logistics processes. The reverse logistics disposed of products eligible for repair, alteration, distribution of the parts, that can be reused as a raw material to be recycled. Revlog published two books, one on quantitative modeling as for aiding reverse logistics decisionmaking 7 and the other on managing closedloop supply chains 7. There is a lack of empirical research regarding reverse logistics metrics. Combining or separating forward and reverse logistics.
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