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Case Study : Reverse Logistics ( Rl ) Is Defined By Rogers

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Reverse logistics (RL) is defined by Rogers 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”. (1) This reverse flow of materials has proven to be worthy of its own field of research. Logistics firms have failed to be able to efficiently and cost effectively move this material through existing networks. Third party logistics firms (3PL) have even been created to specialize in this emerging multi-billon dollar market. A question that arises is why it has taken so long for companies to develop this logistics setup? David Poitevint, manager of marketing research and analysis at GATX Logistics, asserts that, "Reverse logistics has been overlooked because everyone was so concerned with the inbound movement of material, inbound management, and controlling their suppliers from the front end of the supply chain.” (2)
Upon considering if RL is appropriate for your organization, the first decision that must be made is which products you would want to include in a remanufacturing process. Rubio et al. describe three main factors in this decision (3). The first is the customer’s willingness to pay for the remanufactured item. Customers tend to value the item less than an original one after it has gone through the process. Is there still profit to be had on

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