GROUP- 03
Anjaly TA- 190
Pritha Barua- 163
Sheersha KK- 048
Kanika Bhagat- 149
Kasina Tejaswini- 151
Sandeep Agrawal- 169
Introduction
Reverse logistics is “the process of planning, implementing, and controlling the efficient, cost
effective flow of raw materials, in-process inventory, finished goods and related information
When a manufacturer’s product normally moves through the supply chain network, it is to reach the
distributor or customer. Any process or management after the sale of the product involves reverse
logistics
It includes processing returned merchandise due to damage, seasonal inventory, restock, salvage,
recalls, and excess inventory
Managing the reverse travel of your product back into the supply chain can help you avoid making
the same mistake twice and allow you to reutilize as many components of your product as possible
Benefits
Reduced costs - By planning ahead for returns and making the return order
right, you can reduce related costs (administration, shipping, transportation, tech
support, QA, etc.)
Faster service - Quickly refunding or replacing goods can help restore a
customer’s faith in a brand
Customer retention - If a customer had a bad experience with your product, you
have to make it right
Reduced losses and unplanned profits - Fixing and restocking the
unit, scrapping it for parts, or repurposing it in a secondary market, make a
product that would otherwise just cost your company money and turn it into
an unforeseen asset.
Disposition Choices
Reconditioning
when a product is cleaned and repaired
to return it to a “like new” state
when a product is reduced to its
basic elements, which are
Recycle Remanufacturing
reused
More extensive work; often requires
completely disassembling the product
when a returned product may be
Resell Refurbishing
Similar to reconditioning, except with perhaps
sold again as new more work involved in repairing the product
Reverse Logistics offers several advantages to
the company in terms of both tangible and
intangible benefits
companies are able to retrieve defective
equipment and parts which are either salvaged or
refurbished and thus reclaims value out of the
defective parts
unsold and obsolete equipment are collected back
from point of sale which encourages the distributors
and stockist Distributors are more likely to be open to
stocking all fast moving as well as slow moving stocks
organization stands to gain a good standing and
reputation of being a responsible company which
Scope
takes care of the e waste and hazardous waste
Reuse of spare parts and renewed goods are sold at
cheaper prices by all leading brands.
In consumer electronics and white goods, exchange or
buyback offers are a big hit during discount sale seasons.
Flow diagram of reverse logistics
mar remanufacture disassembly testing collection End custom
ket Waste
Strategy for reverse logistics
Few companies that follow RL
Apple UPS
Offered consumer Minimized Accepted used Implemented several easy ways to
discounts on a environmental clothing at all of collect and recycle their used
new product if impact by allowing their stores which products, including Dasani bottle
they turn in old consumers to ever the brand or bins on school campuses across
products reuse boxes to condition of the the US. Consumers place their
ship items cloth empty bottles in the bins which are
collected by Dasani for further use
Reverse Logistics in Apple
● Apple Inc., is an American technology multinational company in California
● Founded by Steve Jobs in 1976
● Apple is a market leader in smartphone, as well as electronic devices
● Its major revenue generated from hardware devices like iphone, iPad, iPod,
Apple smartwatch, Mac personal computer and medias
● Operates in both retail stores and online store
● Apple implemented reverse logistics, which helped it to earn myriad of
benefits
● It helped Apple to be environmental friendly, customer value and satisfaction
and to achieve cost cutting advantage
Apple Takeback Program
COSTS ON REVERSE LOGISTICS SYSTEM
● Revamp procedure requires checking, cleaning, disassembling, try-out and
the act of packaging again. This cost of Revamp is higher
● In order for the company to deal the returned commercial goods, it essentially
needs Apple to hire the professional service provider
● The reverse logistics influence company to invest more effort to improve the
quality and progress of return
● This also resulted in remarkable costs that company might conducted, such
as in transporting and producing the goods
Apple Takeback Program
BENEFITS ON REVERSE LOGISTICS SYSTEM
● It allows customers to recycle any devices at apple retail store or online
● Buyers of iPhone can go to store and upgrade it for a new product of iPhone
● Apple gather old waste goods to factories and recycle it systematically
● They also provide free charge batteries services
● This process entitled Apple to use the segment of old products to convert into
newer models
● Effective reverse logistics management can be utilized as the key for cost-
cutting, strengthening customer satisfaction
● It helps company to save cost of production and growing in sales
Diagram of Reverse Logistics Activities
What Apple thinks about this?
Apple Inc. is the best successful case that has earned a lot of values following through RL function.
GiveBack policy, recycling, servicing and remanufacturing are the major operations to achieve customer value and enhance customer satisfaction
Green environment, catching competitive advantage to be outstanding from their competitors and earning economic of scale.
Obstacle - Costs involved and high rate of returned items from take-back policy - reversely turn this as the opportunity to minimize the risk of
transaction for customer - gaining competitive advantage
Apple company attains the stable route in balancing between cost-cutting and increase in profit.
Future research
analyse the role of costs in reverse logistics, like enlarge to strategic costs.
It refers to how RL needed to customized or change accordingly to the structure.
Is reverse logistics important or irritant?
BARRIERS TO REVERSE LOGISTICS
Government has strict rules and regulations about recycling sites - companies do not want to carry the extra burden of
paying tax for recycling sites
Environmental problems comes from the rapid need of waste disposal - to avoid ground water contamination and toxic air
emissions
ISSUES OF IMPLEMENTATION
Lack of publicity and knowledge of Reverse Logistics
Lack of management attention and company policy
Under-development of recycling technology - Forward logistics systems are not designed for reverse logistics system
Misconception -
Reverse logistics has a high cost of operation and most of these companies have low financial resources
Returns compared to sales generate little or no money
REVERSE LOGISTICS: IMPACT ON THE PERFORMANCE OF SUPPLY CHAIN
Reverse logistics is better in information sharing between customer, supplier and manufacturers.
Improves the flexibility, reliability of the supply chain system
Helps in product development - shortened product life and development cycles can help to improve products and services.
Develops operational excellence and expertise
Result of reverse logistics improves services to customers, better financial performance and obtain market advantage
THANK YOU
