REVERSELOGISTICS
REVERSE LOGISTICS
Definitions/Logistics(Forward)“Processofplanning,implementingandcontrolling(1)theefficient.cost-effectiveflowofrawmaterials.in-processinventory.finishedgoodsandrelatedinformation（2)fromthepointoforigintothepointofconsumption(3)forthepurposeofconformingtocustomerreguirements(4)-Council ofLogistics,1988-ReverseLogistics-RogersandTibben-Lembke-
Definitions ✓ Logistics (Forward) “Process of planning, implementing and controlling（1） the efficient, costeffective flow of raw materials, in-process inventory, finished goods and related information（2） from the point of origin to the point of consumption（3） for the purpose of conforming to customer requirements（4）” - Council of Logistics, 1988 - ✓ Reverse Logistics “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” - Rogers and Tibben-Lembke -
Reverse Logistics ActivitiesHandling of returnedmerchandiseDamageOSeasonal inventoryOResellvia outletOSalvageof outdatedproductsOStock-balancingreturnsORecyclingandreuseMaterial reuseORemanufacturing/refurbishingOHazardousmaterials disposition
Reverse Logistics Activities ✓ Handling of returned merchandise Damage Seasonal inventory Resell via outlet Salvage of outdated products Stock–balancing returns ✓ Recycling and reuse Material reuse Remanufacturing / refurbishing ✓ Hazardous materials disposition
The Reverse Logistics ProcessThreeStep Focused ApproachValueTransportation&PositioningCustomerRedemptionInteractionFeedbackReduceTransportationCosts(e.g.Consolidation)Revenue OpportunityTrade-insRelocateforAdditionalUseAsset-basedSupplementUp-SellsTimeSensitiveDecisions(e.g.Warranties)SortRetrieveTransportDisposeMgmtReceiveInspectRe-sellRecycle印人ERScrapEtc.InformationASNCarrier Tracking NumberIntermal TrackingBusinessRules3rdPartyTrackingRMAEtcIstheinformationgatheredduringthereverselogisticsprocessbeingrationalizedutilized effectively?Source:http://www.rlmagazine.com/img/editiono4_ups.jpg
Source: http://www.rlmagazine.com/img/edition04_ups.jpg The Reverse Logistics Process
Size of Reverse Logistics“Reverse logistics costs in the United States are estimated tobeapproximately4%oftotalU.S.logisticscosts"-ROGERS,D.,ReverseLogisticsChallenges,2002-Roughly$47billionsin2006“"lt isestimatedthat reverse logistics costs accountforalmost1%ofthetotalUnitedStatesgrossdomesticproduct"-MOORE,R.,Reverselogistics:Theleast used differentiator,2006-Roughly$132billionsin2006“TheCenterforLogisticsManagementattheUniversityofNevadaconservativelyestimatesthat 6%ofallgoods maybe returned,but concedesthatthetruenumbermaybecloserto8%"-MOORE,R.,Reverselogistics:Theleast used differentiator,2006
Size of Reverse Logistics “Reverse logistics costs in the United States are estimated to be approximately 4% of total U.S. logistics costs” - ROGERS, D., Reverse Logistics Challenges, 2002 - - Roughly $47 billions in 2006 “It is estimated that reverse logistics costs account for almost 1% of the total United States gross domestic product” - MOORE, R., Reverse logistics: The least used differentiator, 2006. - Roughly $132 billions in 2006 “The Center for Logistics Management at the University of Nevada conservatively estimates that 6% of all goods may be returned, but concedes that the true number may be closer to 8%” - MOORE, R., Reverse logistics: The least used differentiator, 2006