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    Reverse Logistics

    Uploaded by

    Simran Khan
    This document discusses reverse supply chain management (RSCM). RSCM involves efficiently managing the returns of products from customers. It aims to minimize costs while meeting service requirements. RSCM is important because return rates can be high in some industries. It allows companies to generate revenue from previously discarded products and complies with laws regarding product disposal. The key steps in RSCM are acquisition of returns, reverse logistics, inspection, reconditioning, and resale. RSCM models can be efficient and centralized or responsive and decentralized, depending on the time sensitivity of the product.

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    Reverse Logistics

    Uploaded by

    Simran Khan
    160 views12 pages
    This document discusses reverse supply chain management (RSCM). RSCM involves efficiently managing the returns of products from customers. It aims to minimize costs while meeting service requirements. RSCM is important because return rates can be high in some industries. It allows companies to generate revenue from previously discarded products and complies with laws regarding product disposal. The key steps in RSCM are acquisition of returns, reverse logistics, inspection, reconditioning, and resale. RSCM models can be efficient and centralized or responsive and decentralized, depending on the time sensitivity of the product.

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    This document discusses reverse supply chain management (RSCM). RSCM involves efficiently managing the returns of products from customers. It aims to minimize costs while meeting service requirements. RSCM is important because return rates can be high in some industries. It allows companies to generate revenue from previously discarded products and complies with laws regarding product disposal. The key steps in RSCM are acquisition of returns, reverse logistics, inspection, reconditioning, and resale. RSCM models can be efficient and centralized or responsive and decentralized, depending on the time sensitivity of the product.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    160 views12 pages

    Reverse Logistics

    Uploaded by

    Simran Khan
    This document discusses reverse supply chain management (RSCM). RSCM involves efficiently managing the returns of products from customers. It aims to minimize costs while meeting service requirements. RSCM is important because return rates can be high in some industries. It allows companies to generate revenue from previously discarded products and complies with laws regarding product disposal. The key steps in RSCM are acquisition of returns, reverse logistics, inspection, reconditioning, and resale. RSCM models can be efficient and centralized or responsive and decentralized, depending on the time sensitivity of the product.

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    Reverse Supply Chain Management

    Dr. Peeyush Mehta Vipul Mathur

    Definition of RSCM
    A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while

    satisfying service level requirements

    Relevance of RSCM
    The amount of product returns can be very high, with some industries experiencing returns at over 50% of sales. Sales opportunities in secondary and global markets have increased revenue generation from previously discarded products. End-of-life take-back laws proliferated in foreign countries requires businesses to effectively manage the entire life-cycle of the product. Consumers have successfully pressured businesses to take responsibility for the disposal of their products that contain hazardous waste

    Process steps in RSCM


    Acquisition of products from customers

    Reverse logistics: Process of retrieving the product from consumer for the purposes of capturing value or proper disposal
    Inspection & disposition Reconditioning Distribution & sales

    Process

    Examples
    Printing industry: Repurchase of old edition, unsold books. Computer industry: Resale due to fast moving technology

    Automobiles: Resale due to new models availability e.g. Maruti True Value scheme
    Electronic industry: Mobile phones, televisions etc. repurchased to recover electronic parts

    Time value of product returns


    Marginal Value of Time (MVT)
    The loss in value per unit of time spent awaiting
    completion of the recovery process

    MVT (%)=

    Decrease in value of product


    Time

    Example: Time sensitive consumer electronics products such as PCs can lose value at rates in excess of 1% per week, and the rate increases as the product nears the end of its life cycle

    Shrinking pipeline for product returns

    RSCM decisions
    Efficient RSCM: A supply chain designed to deliver product at low cost
    Best for Functional products Suitable for products with High MVT

    Responsive RSCM: A supply chain designed for speed of response


    Best for Innovative products
    Suitable for products with Low MVT

    Efficient RSCM: Centralized model

    Responsive RSCM: Decentralized model

    * evaluation of products at retailer or reseller

    Trade offs
    Efficient RSCM
    Designed for economies of scaleboth in processing and transport of product at the expense of long delays
    Suitable for low MVT

    Responsive RSCM
    Improve asset recovery by reducing timePreponement
    Issues: Technical feasibility; cooperation between manufactures and resellers.

    Suitable for high MVT

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