Differences Between Forward And Reverse Logistics

Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most

International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing

In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.

Logistics is a vital component of supply chain management. Both involve the planning, carrying out and management of goods, services and information from the point of origin to the point of consumption. Logistics aligns the multifaceted pattern of traffic and transportation, shipping and receiving, import and export operations, warehousing, inventory management, purchasing, production planning and customer service. Organizations, like the one I work for, see logistics as a critical design of the supply chain. When organizations incorporate logistics as a key component of the business plan, they can use it to manage, coordinate and monitor resources needed to move products in a smooth, timely, cost effective and reliable manner.

Logistics is a very important part in the world now. And it plays a major part in the supply chain process. Without logistics the supply chain is a hard to continue. In a logistics system there are some parts such as Transportation, Information systems, Customer service, Inventory management, Materials management and Warehouse management. And in this Warehouse management plays a major role in the supply chain. In the supply chain process there are some parts that needs attention. After the raw materials are provided to manufactures the goods are sent to warehouses. Warehouse is the place where they store the goods which is to be sent to customers or other businesses. A Warehouse is a place where you store goods. It’s for further processing. There are some types of warehouses such as Public warehouses, Private warehouses, Leased warehouses and Contract

In recent years, although many companies set up special recycling departments and reverse logistics recycling system, but in India we can clearly see that many E-commerce portals such as Myntra, Jabong, Shopclues, Naaptol etc still excluded the reverse logistics from the activities of business strategy and do not have a proper framework to tackle it.

1. D.S. Rogers, R.S. Tibben-Lembke (1998), “Going backwards: Reverse logistics trends and practices”, Center for Logistics Management, University of Nevada, Reno,

Difference between Logistics and Supply Chain Management: Logistics involves activities that occur within the scope of an individual organization, which focuses on interest in activities such as purchasing, distribution, warranty, etc. Supply chain management involves systematically involving companies and incorporating activities to deliver products to the market. It is also part of the supply chain. Include all logistics issues but add other activities like marketing, new product development, finance and customer service. Is a cross-cutting activity throughout the entire manufacturing

Research has shown that there has been a gradual shift from the traditional linear supply chain to a modern circular supply chain point of view. The idea of a circular economy was introduced to experts in the field in 2013. However, it wasn’t until recently that experts agreed on the impact of the circular economy and its role in forming the circular supply chain. Traditionally, supply chain strategy functioned on a linear approach transporting raw material to end customers. In 2016 supply chain strategy “circular” or “closed-loop” strategy was identified by experts as the new wave movement. This method focuses on moving used products back as raw materials. In 2016, experts agree that the circular supply chain will pose many challenges and opportunities for SCM professionals. One of those opportunities is Reverse logistics. The circular economy will force logistic and supply chain managers to adapt a forward moving approach to logistics and reverse logistics.

Logistics is a process by which an item is moved from its point of creation or production to the point at which it is used as planned by a company, a government or similar institutions. The items moved within a network could be Dangerous Goods, foodstuffs, ammunition, electronics, building cranes and whole host of other products. Time and financial considerations are considered when making these plans as are government regulations that guide the movement of items within a network.

Let’s first have a look at the notion of logistics and then relate it with the operations management of a courier service such as UPS. Logistics is the deemed as the actionable process of transporting and temporarily storing different supplies. The category to which a company can efficiently and effectively do these mentioned duties can differentiate its overall place in itsrelative industry. These mentioned tasks related to transfer procedures are often a subset of the greatersystem of supply-chain-management.This system tends to track items and information among various categories of

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)

In both vertical and horizontal marketing systems, systematised information contributes to the efficient flow of goods and services from the point-of-origin to the point-of-consumption. This process of regulation begins with customer service and extends to the procurement, handling, and processing of resources aimed at delivering customer satisfaction. All ways in which resources are procured, handled, and processed fall within a set of activities known as logistics.

Various researches have RC as the sub-set of reverse logistic which according to Govindan et al. (2015), is to manage used products and packaging from customers such as recycling, repairing, remanufacturing and disposing. RCs, such as pallets, crates and barrels, are secondary packaging that are used for packaging products and are returned for future usage. Synonyms for the term are returnable container (such as Kroon and Vrijens (1995), Hanebeck et al. (2008) and Reza et al. (2011)), returnable transport item (such as Hellstrom (2009) and Kim et al. (2014)), returnable packaging (such as Rosenau et al. (1996) and Silva et al., 2013)). Kroon and Vrijens (1995) summarized that there are three returnable container systems: switch pool systems, systems with return logistics and systems without return logistics. They differentiate these three systems as the followings:

Forward logistics (or conventional logistics) is the regular distribution channel followed by the manufactures from time immemorial. Forward logistics concentrates on the products (goods or services) reaching the consumer end and deals with the line of flow from the manufacturer’s end to the consumer’s end. It deals with the very essence of Supply Chain Management and logistical activities of an organization. It has a significant impact on the primary operations carried out, which act as the basic revenue generating aspect of a business. In this logistical system, the flow is a “one-to-many” type and the forecasting or traceability is quite simple.