Gartner Research says that about 70% of businesses plan to invest in the "circular economy." This circular economy . This could include how your product could potentially be reused, how it should be properly disposed of after use, and any other way where your expired product can create value. Read More. Reverse logistics provides companies with revenues and strategic benefits. Reverse logistics deals with the handling of the goods that are being returned to the manufacturer by the customer. The benefits of reverse logistics. Location and distribution is the critical stage of . Logistics Concept, Evolution, Objectives and Elements. The main purpose of logistics is the flow of goods or things from the point . There are four important stages in Reverse Logistics: Collection is the first stage, where product types are selected and products are located, collected. The success of reverse logistics depends on encompassing the entire supply chain. According to the National Retail Federation, the total rate of returns was 16.6% in 2021, up from 10.6% in 2020. In simple words, in Traditional logistics, the goods are . 4). and material. Beckley and Logan (1948) were the first Check out this article to see more about the Benefits of Reverse Logistics. But at the same time biggest problem for organizations and supply chains is reducing reverse logistic cost. It is the aim to create a sustainable company value using a balance of economic and environmental efficiency. And for a growing number of manufacturers . (Amanda Badenshorst). Reverse logistics is important because it maintains an efficient flow of goods. This white paper examines the Reverse Logistics Maturity Model and it's application in the lighting industry. This paper is aimed at introducing the concept of reverse logistics (RL) and its implications for supply chain management (SCM). Toyin Adebayo. It includes recycling programs, hazardous programs, proper . Reverse logistics COVID-19: Escalating logistics pain points Adding to traditional reverse logistics challenges, retailers are now operating within a state of continuous disruption driven by the COVID-19 pandemic. Reverse logistics play a significant role in the profitability of a warehouse that operates in the retail or e-commerce order fulfillment industry because it maximizes asset recovery, optimizes supply chain efficiency, reduces costs and improves customer experience. Setting up reverse logistics provides companies with the following advantages: Minimise the environmental impact. Reverse logistics is very importance in view to customer satisfaction. Importance of Reverse Logistics, Reverse Supply Chain 1. Introduction According to Baenas, Castro, Battistelle and Junior (2011), reverse logistics has become an important topic within the domain of supply chain management in the recent times. It has the ability to improve the operational excellence which is necessary to grow and expand your business. PDF. The concept of reverse logistics has gained immense popularity in the recent times. RL is a research area focused on the management of the recovery of . It's the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it. Second, the product is not all in new condition. RL deals with the returned, unused, products or unused raw materials in a reverse channel of distribution which is called reverse flow. Overcoming Reverse Logistics Challenges through Logistics Centers 4.1. 2.1 Reverse logistics Over the past decades, the field of reverse logistics has received attention more than ever before. International organizations have sought to develop symposiums, 1. Importance of Reverse Logistics. It covers all the activities that determine the fate of these returned goods. Reverse logistics (RL) refers to a set of programs or competencies aimed at moving products in the reverse direction in the supply chain (i.e., from consumer to producer). The most important reason to adapt strategies of reverse logistics is because of its profitability. Many companies that, previously, did not devote much time or energy to the management and understanding of reverse logistics have begun to pay attention. Besides, it helps to educate consumers through But only 3% name it a key area for investment. %0 International Journal of Business and Management Studies THE IMPORTANCE OF REVERSE LOGISTICS %A Gldem Elmas , Fevzi Erdomu %T THE IMPORTANCE OF REVERSE LOGISTICS %D 2011 %J International Journal of Business and Management Studies %P -1309-8047 %V 3 %N 1 %R %U : ISNAD: Elmas, Gldem , Erdomu, Fevzi . 1.2 Object ive of the thesis The features of reverse logistics are -. PDF. The benefits of reverse logistics involve increasing customer satisfaction and reducing the environmental impact and cost associated with customer returns. The transport process is one of the important activities in reverse logistics; and it is defined as the actual movement of mechanisms, goods, and resources from one point to another point within the reverse logistics network. A guide to reverse logistics, types and strategies: https://bit.ly/3uoyPER Reverse logistics is a type of supply chain management that moves goods from its . This practice will directly benefit society as a whole. Finally, great reverse logistics can minimize stress on equipment managers and give them more time to focus on strategy. Data was gathered from 223 online shoppers and the data was analyzed using. Reverse logistics is a small part of the total logistics of a company. the logistics steps involved in collecting, disassembling and processing used products, parts, materials and packages to provide an environmentally safe method of recovery. E-commerce companies and organisations who decide to implement their reverse logistics also establish agreements with courier companies or third-party logistics . Satisfied customers are a business's most valuable asset. Chapter 1: Size and Importance of Reverse Logistics 1.1 Importance of Reverse Logistics Research Scope This project intends to define the state of the art in reverse logistics, and to determine trends and best reverse logistics practices. It comes with higher service market share. Every component of those strategiesfrom workforce . The global social and economic upheaval makes it more important than ever for organizations to have a sound reverse Age of returns One of the major current concerns of society is the environmental issue, precisely because this is a prerogative of great importance for the populations in terms of quality of life. This "end-to-start", or inverse process was called reverse logistics by Luttwak (1971), and today is part of some authors described like a trend that is the reverse supply chain, where . 2. First, product arrives whenever customers decide to return an unwanted item, or a retailer decides to pull slow-moving product, or a manufacturer institutes a packaging change, or any number of other possible causes. About AER Worldwide. The first hypothesis is firm collaboration will be positively associated with a reverse logistics competency. The meaning of Reverse Logistics. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The goal of reverse logistics is to recapture value and ensure repeat customers. It also describes how Philips . The importance of reverse logistics is that it ensures profits are . (Tyler R. Morgan, Robert Glenn Richey Jr, Chad W. Autry, 2015) The reverse logistics should benefit from the key relationships formed within the context of reverse logistics collaboration, given the joint information sharing that occurs. As the name implies, reverse logistics is focused on moving goods and materials backwards through a supply chain. 75% of retailers identify reverse logistics as a crucial part of supply chain management. . All of these other aspects of asset recovery lead to the same place; decreased expenses and increased revenues. 2.1. Source: Lacerda (2002) According to Dornier; Ernst (2000), reverse logistics involves the return flow, considering either defective parts / packages or products returned / consumed that should go to a recycling We start by giving an understanding framework of Reverse Logistics: the why-what-how. Any logistics involved after the point of sale to recapture value and ensure proper disposal of the returned product, is called reverse logistics. International Letters of Social and Humanistic Sciences. management (reverse logistics) provider to the recipi ent (patients ), taking into account the trajectories of the patients . As a result, it is critical for each company owner to have a thorough understanding of . The reverse flow is different in a number of ways. Companies run RL activity generally due to government . Motivators of design for environment-friendly reverse logistics. It is estimated that thirty percent of ecommerce purchases are returned, as compared to less than ten percent of in-store purchases. 1.2 Importance of Reverse Logistics Reverse logistics (RL) is becoming an important aspect of supply chain management. reverse logistics and outlines some of the challenges, to be faced during the implementation. Since the 1960s, interest in reverse logistics services has increased due to the value it provides for recovered materials as a tool focused on recycling waste and recovering value from used materials. This aftermarket activity involves activities like Refurbishment, Replacement, Remanufacturing, Scrap and even Excess inventory, etc. Reverse Logistics: "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 to recapture value or proper disposal.". Such a system can help save energy, time and cost of processing the recalled materials. 1.2 Importance of Reverse Logistics Reverse logistics (RL) is becoming an important aspect of supply chain management. In this context, reverse logistics is an important issue. activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption. Firms have begun to benchmark return operations with bestin-class operators. Reverse logistics refers to the logistic management skills and activities involved in reducing, managing and disposing of hazardous or non-hazardous waste from packaging and products. Importance of Reverse Logistics to Your Business. There is also a Business Case excerpt that uses a real-life example of how controlling the final disposition of your items takes on even greater importance in this ecommerce focused retailer landscape that looks to continue to be dominated by Amazon for years to come. 3. Boost Business Profitability. A prime example of the importance of reverse logistics is evident during the . They provide the primary impetus for supply chains in all three phases: production, marketing, and logistics. . and reverse logistics. Logistics Makes your customers' experience better. Lack of information and technological systems Given the complexity of RL supply chains and the uncertainty return flows, effective information technology (IT) Learn about the top 10 major importance of logistics management. The purpose of this paper remains to introduce the importance of reverse logistics in the domain of supply chain management, largely focusing over the automobile industry. Navigating the rise in returns: Workforce implications of reverse logistics . Reuse of materials in manufacturing processes helps stave off the misuse of unprocessed raw materials and requires less power. In the literature, there are a number of research studies, that relate to these factors and . J. Grabara, M. Man, M. Kolcun. The best way to reduce returns is to understand the total cost of your returns and to make sure your reverse supply chain is optimized along with the rest of your supply chain. Improve corporate image and customer satisfaction. Managing logistics is extremely crucial as it helps the organisations to gain deep insights of the supply chain. The operation of inventory management determines the efficiency of storage of products. By this means, we put in context the driving forces for Reverse Logistics, a typology of return reasons, a . 4. Reverse Logistics report, 2018 Many retailers and manufacturers ignore the importance of reverse logistics. It entails more than the mere re-use of containers and the recycling of packaging materials. AER Worldwide mitigates risk and provides global solution to handle your entire end-of-life materials management . There is no doubt about the fact that reverse logistics in the supply chain management of automobile industry is becoming important. The progress in techniques and management principles improves the moving load, delivery speed, service quality, operation costs, the usage of facilities and energy saving. 3). Several experts considered the importance of logistics costs in health institutions, assessments Housley (1978) arrive at an estimate of 46% for North American hospitals [15]. The study evaluates the effect of reverse logistics operational responsiveness on customer satisfaction in retailing. Typically, a supply chain network creates a path for companies to reach consumers. These numbers and facts confirm the importance of im plementing a Reverse Logistics network, to regulate and organize the increasing amount of waste. consumption, that were important to GKN to understand what happened with sideshafts in end-of-life vehicles or main reasons in case of substitutions. Inspection/ Sorting is the next stage which may be carried out either at the point/ time of collection itself or afterwards. Ktphaneme Ekle . According to Bras (1997) and Rose (2000), mainly four motivators, involving customers (stakeholders), competition, ISO 14001 system and the most important, legislations, make organizations and corporations more concerned about environment-friendly products and technologies on their own initiatives. Returns and exchanges Sometimes, for any number of reasons, a customer will need to return or exchange an item.Return rates vary by niche or industry, and for some businesses returns are very common.. Understanding the "Amazon Effect" on Reverse Logistics The reverse logistics process is illustrated in Figure 1. International Journal of Research in Business and Social Science (2147- 4478) 2022. 3. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Growing green concerns and advancement of green supply . However, in reverse logistics, companies create a new supply chain network that works backwards, and allows consumers to reach . The importance of the reverse logistics process is also seen with courier companies as they play a significant role in building strong customer loyalty towards the company or the brand. The reverse logistics that directly impact supply chains the . Schematic representation of the direct and reverse logistics processes. This aftermarket activity involves activities like Refurbishment, Replacement, Remanufacturing, Scrap and even Excess inventory, etc. 1. Reverse logistics basically means the reutilization of products and materials. Information. Reverse logistics (RL) is an activity intended to manage end-of-used or end-of-life products to be returned to the point of origin. The costs involved in it like transportation, administrative and aftermarket are also low. It covers the return of damaged or unwanted goods and handling them in a way prescribed by management. Domain: Source: Link to this page: In reality, reverse logistics costs are less than 4% of total supply chain costs for most companies. creation the funds for development and bui lding the reverse distribution channels, organizing the logistics programs for sustainable development, increasing responsibility of producers for the whole product life cycle, a green" image as important marketing element, remanufacturing of machine parts, renovation in technology of packaging materials, Figure 1. 2). According Henning (1980) by taking a The use of information technology is playing important role in today's reverse logistics. And while maximizing efficiency is always important, reverse logistics can also provide a wide variety of opportunities for improvements, from customer service and returns processing to supplier relations and an unexpected revenue source. There is yet another important extension to the supply chainprocess, known as reverse logistics.Simply put, reverse logistics is the procedure of dealing with processing, planning and the flow of the final finished productsinventory, packaging materials. Importance of marketing logistics pdf logistics management, materials management, logistics of distribution, marketing logistics, By 1980s and 1990s, business logistics developed as an important area for corporate strategy of achieving competitive advantage. Pienaar et al. Moreover, the researchers are realizing their responsibility to increase theoretical knowledge of reverse logistics operations in supply chain management. Importance of Reverse Logistics in SCM 1. international journal of business and management studies vol 3, no 1, 2011 issn: 1309-8047 (online) 161 the importance of reverse logistics. The drivers of change are increased competition and globalization. According a study conducted by Statista, businesses can expect to see a 36% increase in tangible cost savings. Any logistics involved after the point of sale to recapture value and ensure proper disposal of the returned product, is called reverse logistics. This thesis tries to understand the basic concepts of reverse . It is the process of moving a product from the point of consumption to another point for the purpose of recapturing the remaining . It has got a higher level of retention with greater customer service. Reverse logistics in supply chain management can trace where products have been sold; they may inspect these for quality control. They usually emphasize on last-mile delivery, route planning and optimization, and order fulfillment. Trading partners have to work together to ensure that the reverse logistics process is Many companies that, previously, did not devote much time or energy to the management and understanding of reverse logistics have begun to pay attention. (2012) suggest that by monitoring the different stages in reverse The meaning of word Logistics in general business sense is the implementation of multifaceted operations, which consist of various processes such as production, material handling, packaging, inventory, transportation, warehousing, etc. Supply chain management with a well-thought reverse logistics system engineered into it can help build an action plan for the defective or recalled products. Reverse logistics management for supply chains Download the PDF. logistics activities in a single facility is more economic and efficient than several smaller intermodal terminals. It includes reverse distribution, which causes goods and information Reverse Logistics . These refurbished products can be sold at a lower price, minimizing the risk of loss which otherwise . that organizations implement new or refresh existing holistic reverse logistics strategies to reflect the increased importance of the capability. 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