Reverse Logistics
Defining Reverse Logistics
Logistics management is that part of the supply chain that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirements.
As you rightly noted Logistics have two parts, Forward Logistics and Reverse Logistics. As our focus is going to be on Reverse Logistics, let us look at the definition of Reverse Logistics. "Reverse Logistics is the movement of products, materials and information in the opposite direction for the purpose of creating or recapturing value, or for proper disposal (Rogers and Tibben-Lembke, 1999, 2001)"
As some researchers have pointed out, reverse logistics is “not necessarily a symmetric picture of forward distribution”.
Here is a summary of the differences between the two direction of the flow. Forward Logistics Reverse Logistics
1 Forecasting is
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For Cisco its Recovering Cisco's products back from Customer/ Distributor, and redeploying them in the way that brings the best value to Cisco and creating a consistent, scalable, global end-to-end process and system for inbound logistics and receiving through disposition and fulfilment.
Cisco's prime vision was to “Deliver a globally consistent, scalable, world class, end-to-end business solution by unlocking value from Product Returns aiming to Optimize net cash contribution, Reduce transaction cost, Improve customer satisfaction, and Promote corporate citizenship”. And major drivers for this vision were following points;
• Lower Product Return Rate after booking
• Brand Protection / Gray Market Risk
• Value Recovery Opportunities
• Building new Customer
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
Reverse Logistics. Once a customer places an order for an item and the item has an associated return value, the GCSS-A system populates a list that so that all parties can see and know what part needs to be returned and that it indeed has and associated return value. This is the true start point of the reverse pipeline of the Army’s supply chain. The Army’s reparable management process recovers and repairs assets (repair parts) to replenish serviceable inventories and satisfy the equipment readiness requirements. Commanders are responsible to ensure that their subordinate units are in compliance with local policy and Army publications (US Army, 2014). The Army uses a system call Standard Pricing (SP), which enables the Army to receive a
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.
Outbound logistics refers to physical distribution activities such as collecting, storing, and distributing products to buyers and involves (finished goods) warehousing, materials handling, network planning and management, order processing, and
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 Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging within an organization. With Wal-Mart this was stemmed from Mr. Walton’s idea of “discount retailing.” It was with this idea and the lack of transportation to
CISCO was founded in the mid 1980’s by 2 married computer science students from Stanford by the names of Sandy Lerner and Len Bosack. By 1990, the company went public and was listed on the NASDAQ stock exchange (Duffy, 20012). Cisco’s first and most significant acquisition of Crescendo Communications launched their $15 billion Catalyst switching business (Duffy, 2012). By 1997, during its first year on the Fortune 500, Cisco ranked in the top 5 companies in Return on Revenues as well as Return on Assets (Nolan, Porter, Akers, 2005).
The main objective of this proposal is to provide an appropriate analysis pertaining the operational challenges faced by Cisco Systems, an Internet networking icon in their business environment
Over the last few decades, the role of logistics in business has increased in scope as well as in strategic importance (Caplice and sheffi, 1995). In general, distribution logistics is expected to ‘provide the right goods at the right time, at the right place, in the right amount and quality, and at the right price’ (Jünemann & Daum 1989, p. 18.)
There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing
Having characterised reverse supply chains in Section 2.1, we now address corresponding strategic design and planning issues. Strategic design and planning of reverse supply chains deal with decisions that have a long-lasting effect on the company. These include decisions regarding a choice of collection method, the number, location and capacity of sorting and reprocessing operations and corresponding inventory buffers, and definition of various transportation links in terms of sourcing, modes and capacities and so on. However, the complexity of the reverse supply chain has also led to the inclusion of several planning decisions in addition to the classical strategic design decisions (i.e. location
Reverse logistics is basically defined as the processes of receiving defective products or unwanted materials in order to recapture or regain value or ensure proper disposal of the products or materials. Therefore, the operations of reverse logistics are largely dependent on reversing the supply chain management processes in order for businesses to correctly determine and classify returned goods for disposal. However, reverse logistics processes entail more than merely
Although a number of general characteristics of reverse supply chains have been identified in Section 2.1.1 and 2.1.2, reverse supply chains encountered in various cases studies are not identical. Different business environments result in different factors being dominant and hence in different forms of reverse supply chains. In the literature, several classifications have been proposed for structuring this field. A first stream of research focuses on the reverse supply chain structure and the roles of the different actors involved. In this vein, Fuller and Allen (1995) distinguish 1) manufacturer-integrated systems, 2) waste-hauler systems, 3) specialised reverse dealer-processor systems, 4) forward retailer-wholesaler systems, and 5) temporary/facilitator systems. This analysis extends earlier suggestions by Guiltinan and Nwokoye (1975) and Pohlen and Farris (1992).
Reverse logistics aim is to focuses on different aspects of learning and tell us that what are the impact on decision made by manufacturing company or firm. Now a day 's competition can be seen in every field , and there is no difference in the manufacturing world. Companies are looking for latest opportunities and tackled defects in the system. Logistics plays a significant role in any manufacturing firm, as it involves the best use of man, machine and material.