Reverse Logistics and Green Supply Chain
of 17
description
In today's marketplace, many retailers treat merchandise returns as individual, disjointed transactions. "The challenge for retailers and vendors is to process returns at a proficiency level that allows quick, efficient and cost-effective collection and return of merchandise. Customer requirements facilitate demand for a high standard of service that includes accuracy and timeliness. It’s the logistic company's responsibility to shorten the link from return origination to the time of resell."[4] By following returns management best practices, retailers can achieve a returns process that addresses both the operational and customer retention issues associated with merchandise returns.[5] Further, because of the connection between reverse logistics and customer retention, it has become a key component within Service Lifecycle Management (SLM), a business strategy aimed at retaining customers by bundling even more coordination of a company's services data together to achieve greater efficiency in its operations.Reverse logistics is more than just returns management, it is "activities related to returns avoidance, gatekeeping, disposal and all other after-market supply chain issues". [6] Returns management—increasingly being recognized as affecting competitive positioning—provides an important link between marketing and logistics. The broad nature of its cross-functional impact suggests that firms would benefit by improving internal integration efforts. In particular, a firm's ability to react to and plan for the influence of external factors on the returns management process is improved by such internal integration.[7] In a firm's planning for returns, a primary factor is the remaining value of the material returning and how to recover that value. [8] "Returned goods, or elements of the product, could even be returned to suppliers and supply chain partners for them to re-manufacture". [9]Third-party logistics providers see that up to 7% of an enterprise's gross sales are captured by return costs. Almost all reverse logistics contracts are customized to fit the size and type of company contracting. The 3PL's themselves realize 12% to 15% profits on this business
Transcript of Reverse Logistics and Green Supply Chain
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Reverse Logistics and
Green Supply Chains
Session 10
Indian Institute of ManagementLucknow
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Pressure on Companies to go Greener
Government pressureAvailability of
alternatives
CSRCompanies see it as the primary issue likely to
impact upon their corporate reputation
Consumer pressureCompanies have begun
competing with each other to demonstrate to consumers their
commitment to the environment
Impact of negative publicity and boycotts on
brand value
International standards and
regulations
Companies are increasingly signing up to greener environmental standards
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CompetitivenessSustainable
DevelopmentEnvironmental Requirements
Global shift: Towards Green Based Economy
Developments Model from Thailand
Green Based Economy
Demand for Green Products
End of Life Cycle
Impact
Economic Restructure
Environmentally Sound Management: ESM
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Increasing Use Efficiency
Bio-Products/Material
End of Life Cycle
Reuse/Recycling/
Repair/Refurbishment
/Recovery
Prevention
Sustainable Development and Competitive Advantage
Source: www.thaieei.comLSCM
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Green Supply Chain Management
Integrating environmental thinking into supply chain
management, including product design, material management, including product design, material
sourcing and selection, manufacturing processes,
delivery of the final product to the consumer as well
as end-of-life management of the product after its
useful life
- Srivastava, 2007
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Interactions between Various Stakeholders in GrSCM
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GrSCM Drivers
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Process Involved in Green SCM
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Green Initiatives
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Green Initiatives in Different SC Phases
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Carbone and Moatti, 2008LSCM
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What is Reverse Logistics? Logistics (Forward)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 origin finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements
- Council of Logistics, 1988
Reverse LogisticsProcess of planning, implementing and controlling the efficient, 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-Lembke7/14/2015 10LSCM
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Reverse Logistics Activities
The advantage to using reworked parts is felt through cost saving
1) Repair2) Refurbishing3) Remanufacturing
Make the product reusable for its intended
use or purpose
Retrieving reusable parts from old or broken products
4) Cannibalization
Reusing parts of products for other/ different purpose
5) Recycling
3) Remanufacturing
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End-of-lifephone
disposal
Phonedemand
& use
Primary materials
productionComponentsmanufacture
Final phone
assembly
Cell phone Take-back Entrepreneur
ComponentReuse
Phone refurbishment
End-of-life phone
collection
Inspection &
sortingComponent
market
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Metalsrecycling
collection
Metalsmarket
sorting
Source: Greener SolutionsLSCM
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Remanufacturing Processes - Alternators
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Shin-Etsu Denso Co. Ltd
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RFID-based Reverse Logistics System
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Towards Greener Supply Chain Models
TransportCarrier
Selection
TransportCarrier
Selection
AGreenerSupplyChain
AGreenerSupplyChain
NetworkDistributionOptimization
TransportMode
Optimization
TransportMode
Optimization
EquipmentUtilization
Improvement
EquipmentUtilization
Improvement
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Discussion of Some Polycopy Papers
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Approach to Sustainable Production & Consumption
GovernmentFirmsGreen Productivity Green PurchasingUniversities
WEEE
CII/ FICCIConsumersGreen Products
International
Local/Domestic
Green Supply Chain
LCA Experts LCA Studies LCA Roadmap LCA Database EcoDesign/ DfE Green Camps Green Operations Industries
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E & E Textile Auto etc.
WEEERoHSREACHIPPELVEcoMark-Labeletc.
SpecializedInstitutes CSE, TERI, etc.
Green Operations Green Usage Green Waste Mgmt
Industries
LSCM
