Challenges in reverse logistics
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Reverse logistics involves the collection and reuse of defective products from customers. It presents more challenges than forward logistics due to the many-to-one distribution pattern. Challenges include difficult forecasting, complex tracking of defectives, transit losses and damages, customer induced damages, and inefficient screening and repair processes. These challenges can be overcome by designing an effective reverse logistics framework, implementing systematic tracking and frequent follow ups, measuring turnaround times, improving documentation processes, educating partners, and ensuring efficient time and warehouse management. Addressing the challenges in reverse logistics is important to minimize costs and losses for logistics providers.
Challenges in reverse logistics
- 1. CHALLENGES IN REVERSE LOGISTICS Presented By T. S. Sharath Logistics executive- Ensure support services Ensure support services
- 2. Logistics process flow WARE HOUSE DISTRIBUTOR LOCATION/SERVICE CENTRE Ensure support services DEFECTIVE COLLECTOR CUSTOMER PRE- SCREENING REPAIR CENTER SUPPLIER DISPOSAL F.L F. L F.L R.L R.L R.LR. L IR UNITS/SCRAP REFURBISHED PARTS F.L:-FORWARD LOGISTICS R.L:-REVERSE LOGISTICS
- 3. Reverse logistics Reverse logistics stands for all activities related to the reuse of products and materials which are collected as defectives from customer place after replacing the good part. It may also referred as moment of products from consumer to the manufacturer or point of origin. Since the future support is based on defectives it should be treated equivalent to good parts. Ensure support services
- 4. Reverse logistics plays a vital role in the entire supply chain network. Once the defective gets collected from the customer place the same need to be refurbished on urgent basis to support future demands. Ensure support services
- 5. Challenges to be faced in reverse logistics Since reverse logistics involves many to one distribution point there are more challenges need to be faced. forecasting more difficult compared to forward logistics. Tracking the defectives is more complex. Transit losses/damages need to look after in a serious manner. CID(customer induced damage)Ensure support services
- 6. which do not match to the expectation of the defectives standard from OEM. Which in turn creates a huge loss to the logistics provider. Poor screening and repairing process. Efficient time management. Warehousing – allocation of resources for quick accessing. Ensure support services
- 7. How to overcome the challenges Reverse logistics framework should be designed in such a good manner for better process. Since the origin of the defectives are many frequent tracking and follow ups should be done. TAT should be calculated at all the sectors right from the customer returns to the refurbishment of the defectives. From which the delay in the process can be diagnosed easily. Ensure support services
- 8. Everything should be systemized. manual data maintaining may lead to some errors in tracking and stocking the goods. System should be framed in a manner which provides clear tracking of the goods right from providing delivery report to the sender and the receiver. Ensure support services
- 9. One of the major challenge in handling fragile items are the transit damages. Which results in huge loss to the logistics provider. To overcome the above packing standards should be improved and the transporters need to be taught how to handle fragile goods. Ensure support services
- 10. Once when the transit losses/damage occur the same should be communicated to the respective client on urgent basis seeking some tolerance or solution. CID creates a huge burden to logistic provider since it involves technical knowledge the same cannot be identified by logistics person. To overcome this loss engineers and service persons need to be educated well so that the defective standard will be equivalent to the expectation fromEnsure support services
- 11. Transportation of the goods should be framed in a systematic manner so that the tracking of the consignment becomes easier and legible. Poor servicing results in the loss of transportation costs for the logistics provider. Hence the serviced defective parts should be equivalent to good standard. Ensure support services
- 12. Efficient time management should be maintained right from collection of the defectives to repaired parts. Warehousing plays an important role in maintaining the stocks. Binning each items in a locator helps to identify the parts easily. Frequent internal audits should be performed on regular basis in order to ensure the variance in stocks. Ensure support services
- 13. Conclusion On following the above the challenges in reverse logistics can be minimized to some extent. Incase of any loop holes found in the entire chain the same should be eradicated without any further delay. Ensure support services
- 14. Ensure support services Thank you