Reverse Logistics

1277 Words6 Pages
Reverse logistics and the return portion of the supply chain is often an overlooked and mismanaged process. Companies tend to focus their efforts on the forward portion of supply chain management, while failing to take advantage of the many opportunities that reverse logistics presents (Benton, 2007). What these companies do not realize is that the effective management of reverse logistics has the potential to make them more profitable, and to add value to many other parts of their supply chain. In the case of Johnson Automotive, we will analyze their current supply chain processes to determine their effectiveness while answering the following questions:
1. What is reverse logistics?
2. What are the key elements of reverse logistics
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Paint is a material that is not able to be remanufactured. There is no real way to recover paint once applied to a vehicle; therefore, recycling is not an option either. The main focus of reverse logistics for paint will be to process customer returns in the most effective way.
Paint that is returned from the buyer for any reason will need to be quickly broken down into its component chemicals and reintroduced into the manufacturing process. This will have two distinct benefits for Johnson. The first is that the company will save on material costs by reusing the base chemicals. The second is that the company will avoid the significant costs related to the storage and disposal of the hazardous materials.
Batteries, like paint, have the potential to impact the environment in a negative way. Batteries contain hazardous materials that require special, cost-intensive, disposal methods. Batteries are, however, highly recyclable. The majority of the materials contained within a battery can be recycled and reused with relative ease. Therefore, the focus for batteries will be to recover and recycle as many old batteries as possible. By doing this, Johnson will realize many of the same benefits as reusing paint components. The difference is that battery recycling will be on a much larger scale due to the fact that all the batteries that are produced will
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