Supply Chain Management : Reverse Logistics Essay

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

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.

The Logistics Innovation Agency is trying to identify any appropriate methodology/systems that would allow for the diversion and or redirection of items while in transit. The key problem LIA is trying to solve is how the DoD environment can use current commercial practices to divert inventory while in transit which would result in massive supply chain improvements to the complete system and increase velocity management.

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

The complexity of the reverse supply chain can be both difficult and challenging all at the same time. By implementing the most innovative and sophisticated software in an organization can exceed the old practices and replace those with the best. In doing so, not only will the sustainability improve the organizational practices in efforts to reach benchmarks but also harvest strong ties within the global economy will as well. Over the past decade the technological boom has taken the world by storm. In all new emerging markets there is a demand for the latest and greats IT innovation that are available. “the potential impact, be it positive or negative, of information technology on the effective management of the logistics function. This is achieved by defining the concepts of logistics, management, information and technology to create a base of understanding” (Introna, 1991). However, in the world of Supply Chain Management some companies have been left behind due to the lack of IT infrastructure. By falling behind this has cause a break in communication within both the forward and reverse flow of supply chains. This is an underlying issue that has caused many consumers and buyers alike to discontinue working with companies for multiple reasons ranging from lack of accountability as well as social issues including the recovery and disposal of products, goods, and materials alike.

Oakden, R., Leonaite, K. (2011). A Framework for Supply Chains Logistics Operations in the Asia Pacific Region. Sydney NSW: McGraw Hill. Chapter 1, Topic: Value chain. (pp. 6).

The primary forecasting techniques that Bronson Methodist Hospital uses varies with the ongoing processes of building, implementing, evaluating and the never-ending improvements that are made in each forecast models that are consistent throughout the organization. Bronson hospital focuses on using forecasting techniques that have data that is readily available, can be performed in house, easy to understand and the forecasting methods are reasonable (Harrelson and McClurkan 2007).

In today’s rapidly changing business environment, ever-greater demands are being placed on business on every industry, such as to provide products and services quicker, with greater added value, to the correct location, with no relevant inventory position, etc. However, customers are more sophisticated by wanting more quality, design, innovation, choice, convenience and service, and they want to spend less money, effort, time and risk. Hence, every business has to deal with highly competitive situation in order to survive; Supply Chain Management (SCM) becoming the main topic for improving efficiency and satisfy customer’s need.

Ammons et al. (1997) developed a mixed integer linear programming (MILP) model for the reverse supply chain design of used carpets. The model considers a two-level network that includes collection of used carpets from carpet dealerships, as well as separation of nylon and other reusable materials while landfilling the remainder. Although the delivery sites for recovered materials are assumed to be known, the optimal number and location of both collection sites and recycling plants for alternative configurations are to be determined. In addition, the amount of carpets collected from each site is to be determined. A sensitivity analysis is performed in order to evaluate the impact of several

During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics

Fiksel (1996) contends that associations can possibly get to be eco-accommodating towards item re-fabricating. Substantial businesses that have complex supply chains ought to think about over the profits of converse logistics. Beamon (1999) recognized the improvement of Iso14000. This was presented as an aftereffect of the Rio Summit on The earth in 1992. There are developing weight bunches that calls for firms to support "greening" in the inventory network. There are a numerous writings that identify with Green Configuration. Johnson (1998) inspected the part of buying in reverse logistics framework and configuration. In this study, twelve American assembling plants took an interest and it gives the idea that every one of them was agreeable to switch logistics without government enactment having been forced. Taleb and Gupta (1997) made connected calculations to outline an item recuperation framework. This study demonstrates that 'center calculations ' and 'allotment calculations ' are the booking frameworks that would help lessen waste.

When supply chain managers are brought together it is the common goal to focus on the process of getting the consumers product though the forward supply chain as quick and efficiently as possible. However, there is a need to focus on the scope of the returns process too. “Companies can no longer afford to treat reverse logistics management as an afterthought. It needs to be a core capability within the supply chain organization. For years, most shippers paid little attention to returns” (Dowlatshahi, 2005). It has cost companies billions of dollars over the years and even harmed some of their brands. Though this may be apparent, the improvement of managing the returns of those goods has become the capstone of completing the full cycle of the supply chain from both forward and revers. In saying that, the attributed on managing the returns process is somewhat similar to that of the forward supply chain. This process is not always easy and convenient. Many known companies have failed because of an overload on return that were mishandled, causing a dilemma when making the attempts to reach expectations. To avoid failure the best practices, in reverse logistics have been proven to give those in leadership positions the functional ability to consider the overall establishment of clearly defining what profits and loss are being made. Technological advancements have too given the use of applications and inventory control analytical procedures to govern the increasing disposition 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)

Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one 's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

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 customers ' requirements’’.i It is important in all the business processes and concentrates on moving goods and services from suppliers to producers to the end consumers. One important part of logistics is the transportation industryii. The