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Assignment 2

ANS 1:
Reverse logistics states to all procedures related to product returns, repairs, maintenance, recycling and
dismantling for products and materials. Overall it incorporates running products in reverse through the
supply chain to gain maximum value. Organizations that implement reverse logistics are able to improve
customer service and response times; reduce environmental impact by reducing waste and improve
overall corporate citizenship. The difference between forward and reverse logistics is that the typical trade
off of the transportation is combining forward and backward transportation, because it might lead to
significant savings by one side, but some difficulties have to be overcome and some constrains put to the
supply chain.
Collecting returned products is complicated by the packaging, which is often not complete, damaged or
opened, making handling it more complicate. An incomplete package rises the risk of damages for the
product and often makes difficult the identification of the product in the reverse channel. Standard for
packaging in the reverse flow are needed.Due to the great range of possible destination of each returned
item, determining where a particular one will be shipped may need a significant amount of time.
Determining destination needs to be more automatic and rapid, through tests and clear dispositions.
The secondary market is often marked by the rules and the restrictions imposed by the vendors, that make
more difficult to identify the destination of the items. The range of prices that an item in the reverse flow
is sold for is great because of the fact that not all product in the reverse flow is first quality. Life-cycle
issues play also an important role: it may be difficult to discern, ahead of time, when a product has
reached the point where it will or will not be attractive to a particular broker / buyer.

ANS 2:
In certain industries, goods are distributed to downstream members in the supply chain with the
understanding that the goods may be returned for credit if they are not sold e.g. newspapers and
magazines. This acts as an incentive for downstream members to carry more stock, because the risk of
obsolescence is borne by the upstream supply chain members. However, there is also a distinct risk
attached to this logistics concept. The downstream member in the supply chain might exploit the situation
by ordering more stock than is required and returning large volumes. In this way, the downstream partner
is able to offer high level of service without carrying the risks associated with large inventories. The
supplier effectively finances the inventory for the downstream member. It is therefore important to
analyse customers accounts for hidden costs.

Types of reverse logistic


Movement of capital items s and equipment to the next emergency response.
Removal of containers and packaging from response area.
Destruction of spoilt food commodities and out of date pharmaceuticals.

Return of rejected goods to the suppliers.


Movement of excess or over-supplied goods to other programs or donating to other organisation

ANS 3:
Generally, it has been found that the closer the firm is to the end consumer, the greater the size and the
scope of the reverse logistics issues, If compared with the retailer, in dispositioning product in the reverse
flow, which allow him to recapture a higher amount of value for a given product.Another problem which
touches the possibilities of selling again the product is the so called brand equity, that is, the particular
image of the product that the vendor tries to create in the minds of consumers. Vendor could pretend that
products do not appear in any sales locations which might damage the brand equity, then the retailer or
the broker should handle the return products in accordance with the vendors wishes.

ANS 4:
The key to a successful supply chain is not only planning how to distribute your product, but how to bring
it back both customer returns and obsolete products. Managing returns effectively allows you to recapture
value or reduce write-offs, while keeping your customers happy.
Excel will help you design, plan, and implement a reverse supply chain that supports your profit goals and
provides you the maximum value for your assets. We bring to reverse logistics the exacting management,
resources, and technology required to increase control and asset recovery, improve information
management, and save administrative time. Whether we're handling your product returns to help you
recapture value, or managing your recycling processes to help you safely dispose of your goods, we'll
provide a better experience for your business.

ANS 5:
The Reverse Logistics Educational Council recommends consideration of the following
Avoidance: producing high-quality products and developing processes to minimize or eliminate returns
Gatekeeping: Checking and screening merchandise at the entry point into the reverse flows process to
eliminate unnecessary returns or minimize handling
Reducing reverse cycle times: Analyzing processes to enable and facilitate compression of time for
returns to enhance value recapture
Information systems: Developing effective information systems to improve product visibility, reduce
uncertainty, and maximize economies of scale.
Returns centers: Developing optimum locations and facility layouts for returns centers to facilitate
network flow
Asset recovery: Classifying and disposing of returned items, surplus, scrap, and obsolete items to
maximize returns and minimize cost

Pricing: Negotiating the best price for products being returned and resold
Outsourcing: Considering a relationship with a third-party organization to handle and manage reverse
flows in cases where existing personnel, infrastructure, experience, and/or capital may not be adequate to
implement a successful program
Zero returns: Developing a policy to exclude returns by giving a returns allowance and/or destroying
the product in the field
Financial management: Developing guidelines and financial procedures to properly account for charges
against sales and related financial issues when items are returned by customers

ANS 6:
Green Logistics Definition
Green logistics aims to move and deliver raw materials and products at the lowest possible cost while
maintaining the highest standards and minimizing environmental impact in the process. It implies
innovation in all steps of the supply chain, the conception of product and in some cases the final use of
products.

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