Reverse Logistics within a Supply Chain

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.

Product recovery operations in reverse supply chains are already faced with the challenging problem of adapting their capacity in an effort to increase supply chain profitability related to recovery activities, while dealing with the confines of continuously evolving EPR legislation (Vlachos et al, 2007). Capacity planning is thus becoming even more complex and critical for reverse supply chains. Therefore, a company needs an efficient capacity planning measure to improve economic and environmental performance of its reverse supply chains. However, capacity planning of reverse supply chains is an extremely complex issue, since each time a company considers expanding or contracting collection, sorting and reprocessing capacity, it must consider a myriad of possibilities. Even after the decisions to expand or contract capacity is given, it remains to resolve key issues such as when, where and how much, and all these under the two main competing objectives in capacity planning which are 1) maximization of market share and 2) maximization of capacity utilization. Furthermore, specific external factors affecting capacity stability have to be incorporated into capacity planning. Such factors include uncertainties in product usage and residence time, quantity, timing and quality of end-of-life products, EPR obligations and penalties, and so on (Georgiadis et al., 2006).

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

However it generalizes “point of consumption” to “a manufacturing, distribution or use point” and “point of origin” to “a point of recovery or point of proper disposal.” In this way we give margin to return flows that were not consumed first (for instance, stock adjustments due to overstocks or spare parts which were not used). We employ the expression “point of recovery” instead of “point of origin” since flows may go back to other points of recovery than the original (e.g. collected computer chips may enter another chain). Besides this, “point of recovery” stresses the distinction we want to make between reverse logistics and pure waste management activities. Furthermore, we include the reverse direction through the term “backward flows,” to exclude what can be considered as forward recovery. For instance, when a consumer gives his/her personal computer to the neighbour. In summary, the definition of Reverse Logistics has changed over time, starting with a sense of reverse direction, going through an overemphasis on environmental aspects, coming back to the original pillars of the concept, and finally widening its scope. For other discussions on the evolution of the definition of reverse logistics, we refer to Rogers and Tibben-Lembke (2001) and to Fernand´ez (2003).

Coyle, J. J., Bardi, E. J. & Langley, C. J. (2003).Management of business logistics: a supply chain p

The globalisation of markets has increased customer demand and product differentiation. Higher quality products and shorter delivery times are essential for maintaining customer satisfaction in highly competitive markets like the consumer electronics industry. Consequently, supply chain management is an important process in all businesses, and if managed effectively, can give companies a competitive edge. However, it often

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

There are a large number of potential customers for C2R. The company's model has proven effective for a seller of physical goods already, so this category appears to hold the best potential. In particular, companies that do not have a physical sales infrastructure will see value in C2R's service. Companies that have a third-party physical sales infrastructure are especially good candidates. This is doubly the case for firms that have little interest in vertically integrating the reverse logistics function. The ideal client or partner should be an industry leader, because there is a certain prestige factor to working with the best and that prestige can be used as a selling point. One example can be Dell, which now sells through stores as well as online. This company does not have branded stores, so uses third-party outlets. Moreover, because this is a recent initiative, Dell might not have a sophisticated system for handling returns. Yet it sells over $60 billion per year. Additionally, Dell has a challenge in that a lot of its end consumers are also businesses, making our B2B reverse logistics model even

which activities are managed is significant for a company 's success. Moreover, the supply chain management is crucial within a firm 's processes since it incorporates activities in which intermediate goods and final products are given to consumers through a distribution system. It is important to analyse it and take into consideration that this subject matter has a great impact within business procedures.

In this study, the functional unit has been chosen under assumption that study will be used internally only, in which case the engineers and operators are concerned with assessing and improving the reverse supply chain performance on the basis of its actual operation. Therefore, interest here lies in analysing the effect of marginal changes around an existing state of the supply chain. Hence, the functional unit has been defined as “operation of the reverse supply chain for a certain period of time.

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.

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).

Logisticians can also achieve ‘green logistics’ through reverse logistics operations which is designed to reuse products or dispose of them correctly, therefore reducing waste in the system. Rogers and Tibben-Lembke, (2001, p.130) define reverse logistics “as the process of planning, implementing, and controlling the efficient, cost effective flow of materials, in process inventory and finished goods, and related information from the point of consumption to the point of origin, the purpose of recapturing value or proper disposal”. Efforts that reduce this reverse flow are considered part of reverse logistics as they reduced the total amount of waste in the supply chain. Reverse logistics approaches include returns management, product repair/refurbishment, recycling of products and materials as well as the correct disposal of unwanted products. Figure 1 illustrates the product flow in reverse logistics and the principles of reverse logistics i.e. substitute, reduce, recycle and reuse (Wu and Dunn, 1995). All these reverse logistic approaches diminish the total quantity of waste in the supply chain and therefore can be used by logisticians in order to achieve green logistics.

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.

In order to design reverse supply chains at a strategic level, we have to identify the common features of the supply chains. To this end, we will investigate reverse supply chain settings