Reverse logistocs
1 like532 views
Reverse logistics involves the flow of goods and materials from the point of consumption back to the point of origin for the purposes of recycling and proper disposal. It aims to promote customer service, increase competitiveness, and recycling of reusable materials. Reverse logistics systems allow defective products to be returned to manufacturers for quality control. The rise of reverse logistics is driven by globalization and environmental protection policies, and it can help companies increase service levels and reduce production costs. Third-party logistics providers offer reverse logistics services that provide small and medium companies an option to implement these systems.
Reverse logistocs
- 1. Reverse Logistics The concept of reverse logistics has been applied in promoting customer service and resources recycling. Concerning quality control, the defective components and finished products will be returned to their producers through reverse logistics systems. Nowadays, reverse logistics has been developed rapidly for increasing industries’ competitiveness, Promoting customer service level, and recycling the reusable material. Meanwhile, the demand of reverse logistics brings out a new market for the third-party logistics industries. Rogers et al. (1998) defined reverse logistics as ‘the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal’. Figure 5 shows the structure of logistics systems, which includes forward logistics, backward logistics and information flow. The flow in black arrows presents the direction of reverse logistics, whose direction is counter to the ordinary logistics represented in hollow arrows. The information flow interlaces between different stakeholders within the system. Each stakeholder can communicate with the others Directly to maximum their profitability. Reverse logistics will be adopted in various modes and applications in the future due to its efficiency and benefits in environment protection. The two main reasons behind the rise of reverse logistics are the globalization of markets and policies for environment protection. A successful reverse logistics could help to increase the Service level of companies and reduce the costs of producing processes. More and more companies want to build their reverse logistics system; however the system needs professional knowledge in logistics management and particular facilities. Thus the third-party logistics
- 2. Service provides another option for small to middle size companies to have their reverse logistics system. Figure 6 shows a system of reverse logistics service on how FedEx, a third-party logistics provider, serves Acer computer, the customer company. At the first step of the System, the customer applies a request for returning the product through the Internet, and then FedEx builds the data of the products; meanwhile the system organizes the route of the delivery trips of the product. The customer can check the processing condition and wait for sending back at the right time.