Quản trị kinh doanh - Reverse logistics

REVERSE LOGISTICSGOODS SOLD ARE NOT RETURNABLE!!!What does this mean?What is its implication for Reverse Logistics?Does it exonerate company from liability?LECTURE PREVIEWIntroductionDefinitionsThe Rs of Reverse Logistics (RL)RL ScopeReasons for RL (Operational & Strategic)Evolution of RL in OrganisationsProcess for RL managementComparison of Forward Logistics Vs RLAdvantages of RLRL Cases that Enhanced Competitive Adv.ConclusionIntroductionTwenty-years ago, supply chains were busy fine-tuning the logistics of products from raw material to the end customer. Products are obviously still streaming in the direction of the end customer but an increasing flow of products is coming backThis is happening for a whole range of industries, covering electronic goods, pharmaceuticals, beverages and so on.Organisations are now moving Reverse Logistics (RL) Issues from the “Backroom (Operational) to the Boardroom (Strategic)”Introduction The Reverse Logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics (forward) deal with events that bring the product towards the customer. In the case of reverse, the resource goes at least one step back in the supply chain. CustomerManufacturer Forward LogisticsReverse LogisticsIntroduction For instance, goods move from the customer to the distributor or to the manufacturerThe domain of reverse logistics is also referred to by other terms, including: The Reverse Supply Chain,The Aftermarket Supply Chain,Aftermarket Logistics, orRetrogistics.Introduction Reverse logistics is more than just returns management, it is "activities related to returns avoidance and disposal and all other after-market supply chain issuesThe principal difference between forward and reverse logistics as being that: "on the forward side, you deal with order. On the reverse side, you deal with chaos, trying to create order.“ Clay Valstad, Director of Reverse Flow and Specialty Distribution for Sears.“In the sweat of your face you shall eat bread till you return to the ground, For out of it you were taken; For dust you are, And to dust you shall return.” Genesis 3:19.And Allah has caused you to grow out of the earth as a good growth. Then will He cause you to return, thereto, and He will bring you forth a new bringing forth. (71:14-19); and He began the creation of man from clay. (32:8)God Established Reverse Logistics In the Creation of Human BeingsBirthGrowthCremationCremation OvenCremationDeadLIFECYCLE OF HUMAN BEINGSDisposalDefinitionsLogistics (Forward)“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 origin to the point of consumption for the purpose of conforming to customer requirements” - Council of Logistics, 1988 - Reverse Logistics“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” - Rogers and Tibben-Lembke -Reverse logistics may be defined as a process of moving goods from their place of use, back to their place of manufacture for re-processing, re-filling, repairs or recycling / waste disposal.Reverse logistics refers to the skills of logistics management to reduce, manage & dispose-off waste arising from products & inputs It is also seen as "the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it.“ Van Wassenhove Harvard Business Review in 2002 Definition 2Reverse LogisticsIt is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one step back in the supply chain. For example... A manufacturer produces calculators which move through the supply chain network reaching the distributor or customer. Any process or management after the sale of the calculators involves Reverse Logistics. If a calculator happened to be defective the customer would return the calculator. The manufacturing firm would then have to organise shipping of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. The calculator will travel in reverse through the supply chain network in order to retain any use from the defective product. This is what reverse logistics is about!5-Rs of Reverse Logistics MgtMost DesirableLeast DesirableReduceReuseRecycle (Compost)Recover (Energy)RefurbishDisposal FORWARD LOGISTICSREVERSE LOGISTICSProducer InitiatedCustomer InitiatedTHE LOGISTICS LOOPSourcingProductionPackagingTransportationWarehousingmarketingRecyclingWaste mgtReturnsRemanufacturing.RepackagingClosed-loop Logistics SystemOpen Loop Logistics SystemFORWARD LOGISTICSOPEN LOGISTICSReverse Logistics also differs from green logistics as that considers environmental aspects to all logistics activities and it has been focused specifically on forward logistic, i.e. from producer to customerIt is not synonymous with Waste ManagementThe prominent environmental issues in logistics are consumption of non-renewable natural resources, air emissions, congestion and road usage, noise pollution, and both hazardous and non-hazardous waste disposalReverse logistics can be seen as part of Sustainable DevelopmentScope Over supplyUn-purchased goodsProduct defect/recall (illegal, bad performance, incomplete, ethical issues, harmful, etc)Obsolescence (Technological, depreciation, etc)RemanufacturingRepackagingProduct expiryProduct disposalProduct refillPackage reuseExchange of new product for the old ones (trade-in)Goods sent for up-grade/modificationOperational Factors Reverse LogisticsLegislation; environmental protection, waste managementAchieve sustainable development; depletion of forestEthical/Corporate Social ResponsibilityConsumerism; pressure from consumersEconomic; cost reduction, reuse of material as raw materialsCustomer service; warranty replacementsSafety and security; prevent harmAvoid competitor espionage; Iran interception of American DroneCreation of employment; for 3PLsAchieve green image; Sustainable Supply Chain systemCompetition/Competitive pressure; Strategic Reasons for Reverse LogisticsEvolution of RL in OrganisationsNo Reverse LogisticsNo understanding of the benefitsand needNon existent, Poorly developed RL but a growing understanding of the need from an environmental, control and warranty reclaim perspective Solid RL capability for traditional repairables and good controls of 3rd Party Service returns First class optimized RL. Minimizes warranty costs through pushing back warranty cost to suppliers, fully environmentally compliant; excellent warranty claim controls; revenue from waste managementIncreasing scope of RL to include a much broader range of parts. Growing focus on warranty recovery, meeting environmental legislationsInnocenceUnderstandingCompetenceDevelopmentExcellenceReverse Logistics ActivitiesHandling of returned merchandiseDamageSeasonal inventoryResell via outletSalvage of outdated productsStock–balancing returnsRecycling and reuseMaterial reuseRemanufacturing / refurbishingHazardous materials dispositionSource: Reverse Logistics ProcessForward vs. Reverse LogisticsAdvantages of Reverse LogisticsRetrieved defective equipment and parts are either salvaged or refurbished and thus value is reclaimed. Unsold and obsolete equipment are collected back from point of sale which encourages the distributors and retailers to confidently buy stocks from the companyIn the eyes of the customer and society, the organization stands to gain a good standing and reputation of being a responsible company which takes care of the waste generated.Reverse Logistics and the EnvironmentEnvironmental considerations have a greater impact on many logistics decisions.For example:Many products can no longer be placed in landfillsFirms forced to take back their products at the end of their useful lifetime.Decrease of landfill availability and increase in Landfill costs.Green Logistics and Reverse LogisticsReverse Logistics refers to all efforts to move goods from their typical place disposal in order to recapture value.Green Logistics refers to minimizing the ecological impact of logistics, for example, reducing energy usage of logistics activities and reducing usage of materials.Landfill costs and availabilityThere is a shortage of landfill spacePrices of landfill usage have been rising.Considering the rate at which Americans generate waste, landfill alternatives must be developed.New ways are considered to prolong the lives of existing landfills by reducing the volume of material that goes into them.The reduction in material sent to the landfill can be achieved through recycling, composting and incineration.Disposal Bans and Reverse LogisticsProducts are banned from being placed in a landfill either because they present a health risk, example the cathode ray tubes (CRTs) in computer monitors, or because they take up too much space.Products banned from landfills are: motor oil, household batteries, household appliances, paper products, tires, and some medical and electrical equipment.Product ban represents a new reverse logistics opportunity.A number of societal changes regarding the environment are having a profound impact on reverse logistics.Firms are forced to take their products back when they are banned; this benefits the firms in two ways. They reuse the products and recapture their value. The firm is exposed as an environmentally friendly company.Product Take-BackCompanies have begun to examine new ways to regain value from products once they have reached the end of their useful lives.Companies have begun to realize the potential marketing benefits of a take-back program.Product Take-BackProduct Take-BackMany companies such as Compaq, Hewlett-Packard, and Xerox have adopted the Extended Product Responsibility (EPR) program. EPR focuses on the total life of the product, looking for ways to prevent pollution and reduce resource and energy usage through the product’s life cycle.CASES of Adoption of Strategic Reverse Logistics Leading to Competitive AdvantageRL Case- GMGeneral Motors (GM) simplified its process for returning automotive parts by allowing parts to be returned to a single facility using GM’s pre-printed shipping labels. This less costly process enhanced GM’s relationships with its customers and supply chain partners RL Case - Bosch Bosch, an automotive and industrial technology company, builds sensors into its power tools that indicate if the motor is worth reconditioning. The sensors reduce inspection and disposition costs, allowing the company to realize profits on the remanufactured power tools CASES of Adoption of Strategic Reverse  Logistics Leading to Competitive AdvantageRL Case- VolvoVolvo, a Swedish car manufacturer, anticipated the Swedish government passing a resolution holding auto manufactures accountable for disposal of vehicles. Volvo implemented a reverse logistics process of salvaging and dismantling cars. The company generated revenues by selling the used metal, plastics and car parts RL Case- BOPPBopp was disposing of its crashed kernels by land filling the factory and plantation. Cases of villagers falling into the pit occurred with compensations. Management decided to improve their reverse logistics by using the kernels as fuel for boiling the crude palm oil for processingCASES of Adoption of Strategic Reverse Logistics Leading to Competitive AdvantageRL Case- GHACEMGhacem used to dispose of cement residue. This also attracted cost in disposalManagement installed new equipment capable of reusing the residue to produce extra bags of cement leading to almost nil wastage of clinker and redeeming residual valueRL Case- Zoomlion (ZL)The ZL sorting and composting plant at Adjen Kotoku (Nsawam), turns the organic component of waste, into good quality compost for agricultural and horticultural purposes and also recover other materials such as metals and plastics to be reused for several other purposes. It has the capacity to palletize the recovered plastics to be sold to end-users for the manufacture of plastic items such as plastic chairs, carpets, bowls and many others. Research has shown that compost or organic fertilizer is safer when used to support the production of food for human consumption. They are one of few companies in this market.CONCLUSIONSMore firms will give considerable attention on reverse logistics Efficient handling and disposition of returned product can make a competitive difference.Excellent reverse logistics practices add to the company’s bottom line.Aspects to reduce the cost of reverse logistics:Improved Gatekeeping technologyPartial returns creditEarlier disposition decisionsFaster processing / shorter cycle timesBetter data managementCONCLUSIONSWithin reverse logistics, maintaining the environment and making profits are complementary.Fewer disposed products can benefit companies and the environment.Alternate uses of resources by extending products’ normal life cycles. Cost effective and ecologically friendly solutions.Reverse logistics is not simply a matter of “driving the truck the opposite way”.Video Emmanuel Sena38akpe na mi!