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Reverse Logistics

The document discusses reverse logistics, which involves planning and implementing the reuse or proper disposal of raw materials and finished goods from the point of consumption back to the point of origin. It aims to recapture value. The document outlines purposes like repairing or reusing returned products. It also discusses challenges like legal issues with returning excise-paid goods and organizations viewing returns as 'junk'.

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Kareena Chaudhary
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© Attribution Non-Commercial (BY-NC)
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140 views15 pages

Reverse Logistics

The document discusses reverse logistics, which involves planning and implementing the reuse or proper disposal of raw materials and finished goods from the point of consumption back to the point of origin. It aims to recapture value. The document outlines purposes like repairing or reusing returned products. It also discusses challenges like legal issues with returning excise-paid goods and organizations viewing returns as 'junk'.

Uploaded by

Kareena Chaudhary
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Reverse Logistics

By MBA- M&S

Definition
Reuse of products or materials Also known as after market logistics Planning, controlling and implementing raw materials and finished goods from point of consumption to point of origin Recapturing value or proper disposal

Purpose of Reverse Logistics


Product failed but can be repaired or reused Products are obsolete but have value Unsold products from retailers Recalled products Recycling Waste can be used for energy production

Reverse Logistics A Competitive Tool


To remain competitive organization show speed and reliability in offering the following services: 1. Refurbishing 2. Replacing 3. Disposing waste They services add value as they are performed free of cost and lead to healthy and clean environment

Repairs and refurbishing


Repair is a regular feature Refurbishing is done to products returned due to 1. Damage 2. Low performance 3. Defects

REPAIRS

STORES

PRODUCTION

WAREHOUSE

RETURNS

SUPPLIERS DISPOSAL

CUSTOMERS

REVERSE LOGISTICS FLOW

Refilling
Used mostly in soft drinks company No extra cost Same truck carrying the filled bottles collects the empty ones

A2
DISTRIBUTION AREA (A) A1

A3

B2 DISTRIBUTION AREA (B) B3

C1 B1 BOTTLING PLANT DISTRIBUTION AREA (C) C2

C3 B4

REVERSE GOODS FLOW FOR REFILLING

Product Recall
Emergency situation Product distributed in market is called back to factory 1. Quality complaints 2. Defective products causing harm to human life 3. Products beyond expiry date 4. Incomplete product 5. Violation of Govt. regulations 6. Save companys image

PRODUCT RECALL PUTS A HUGE FINANCIAL BURDEN ON THE

COMPANY BUT IN THE COMPETITIVE SCENARIO THE COMPANIES CONSIDER RE-CALL AS AN OPPORTUNITY TO INCREASE CUSTOMER

SATISFACTION.

Tata Nano- the cheap car


1,40,000 Nanos recalled Faulty starter motor Several cars caught fire Cost to company $20 million Biggest ever recall for Tata

Toys R U Recalls Imaginarium Activity Center Due to Choking Hazard


Name of Product: Imaginarium 5-Sided Activity Center

Units: About 24,000


Importer: Toys "R" Us Inc. of Wayne, N.J. Hazard: The small wooden knobs attaching the xylophone keys to the end

can detach, causing a choking hazard to young children.


Incidents/Injuries: Toys "R" Us has received eight reports of the knobs detaching. No injuries have been reported to the firm.
Remedy: Consumers should immediately stop using the product, move it out of the reach of young children and return it to a Toys "R" Us store for a refund or store credit.

BARRIERS TO GOOD REVERSE LOGISTICS


1. LEGAL ISSUES

UNDER INDIAN REGULATIONS EXCISE PAID GOODS ONCE SOLD BY THE MANUFACTURER CANNOT BE BROUGHT BACK TO THE PLANT WITHOUT PROPER DOCUMENTATION AND DECLARATION TO EXCISE AUTHORITIES.THIS IS A VERY CUMBERSOME & TIME CONSUMING PROCESS AND NON-COMPLIANCE MAY MEAN THAT THE MANUFACTURER WILL HAVE TO FACE LEGAL ACTION. 2. MANY ORGANIZATIONS TERM REVERSE GOODS AS JUNK AND THEY DONT WANT TO WASTE THEIR RESOURCES ON THESE JUNKS

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