《物流英语》课件-14课 Reverse

REVERSELOGISTICSDefinitionsLogistics(Forward)“Processofplanning,implementingandcontrolling（1）

theefficient,cost-effectiveflowofrawmaterials,in-processinventory,finishedgoodsandrelatedinformation（2）

fromthepointoforigintothepointofconsumption（3）

forthepurposeofconformingtocustomerrequirements（4）”

-CouncilofLogistics,1988-

ReverseLogistics“Processofplanning,implementingandcontrollingtheefficient,cost-effectiveflowofrawmaterials,in-processinventory,finishedgoodsandrelatedinformationfromthepointofconsumptiontothepointoforiginforthepurposeofrecapturingvalueorproperdisposal”

-RogersandTibben-Lembke-ReverseLogisticsActivitiesHandlingofreturnedmerchandiseDamageSeasonalinventoryResellviaoutletSalvageofoutdatedproductsStock–balancingreturnsRecyclingandreuseMaterialreuseRemanufacturing/refurbishingHazardousmaterialsdispositionSource:/img/edition04_ups.jpgTheReverseLogisticsProcessSizeofReverseLogistics“ReverselogisticscostsintheUnitedStatesareestimatedtobeapproximately4%oftotalU.S.logisticscosts”-ROGERS,D.,ReverseLogisticsChallenges,2002- -Roughly$47billionsin2006“Itisestimatedthatreverselogisticscostsaccountforalmost1%ofthetotalUnitedStatesgrossdomesticproduct”MOORE,R.,Reverselogistics:Theleastuseddifferentiator,2006. -Roughly$132billionsin2006“TheCenterforLogisticsManagementattheUniversityofNevadaconservativelyestimatesthat6%ofallgoodsmaybereturned,butconcedesthatthetruenumbermaybecloserto8%”MOORE,R.,Reverselogistics:Theleastuseddifferentiator,2006.ReturnPercentagesSource:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998PublishingIndustryHighestrateofunsoldcopies(28%onaverage)Growthoflargechainstores:MoresquarefootagerequiresmorebooksTosecureaprominentdisplayinsuperstores,publishersmustsupplylargequantitiesofbooksSuperstoresselllessthan70%ofbookstheyorderShortershelflifeComputer/ElectronicIndustryShorterlifecyclesApproximately325millionPC’sbecameobsoleteintheUSbetween1985and2005OpportunitiestoreuseandcreatevalueoutofanearlyomnipresentassetHowtorecoverandreusematerialscontainedwithinE-waste?Lead,copper,aluminumgold,plasticsandglassE-wasteincludescomputers,televisions,cellphones,audioequipmentandbatteriesRemanufacturingoftonercartridges:12,000remanufacturers,employing42,000workers,sellnearly$1billionannuallyAutomotiveIndustryPrimaryareas:Components,suchasengines,alternators,starters,andtransmissionsarerefurbishedbeforetheycanbesoldMaterialsarereclaimedthroughcrushingorshreddingAutomotiverecyclershandlemorethan37%ofthenation’sferrousscrapRemanufacturedautopartsmarketisestimatedat$34billion,annuallyRetailIndustryProfitmarginsaresoslimthatgoodreturnmanagementiscriticalReturnsreducetheprofitabilityofretailersmarginallymorethanmanufacturersReturnsreducetheprofitabilityofretailersby4.3%Theaverageamountthatreturnsreduceprofitabilityamongmanufacturersis3.80%Forwardvs.ReverseLogisticsSTRATEGICUSEOFREVERSELOGISTICSReverseLogisticsasaStrategicWeaponManyfirmshavenotyetdecidedtoemphasizereverselogisticsasastrategicvariable.Thehandlingofreverselogisticschallengesisanstrategiccapability.Reverselogisticsisstrategicallyusedto:Reducetheriskofbuyingproductsthatmaynotbe“hotselling”items.Increasetheswitchingcostsofchangingsuppliers.Source:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998STRATEGICUSEOFREVERSELOGISTICSCompetitiveReasonsLiberalreturnpoliciesoverthelastfewyearsdueofcompetitivepressures.Takingbackunwantedproductsorproductscustomersbelievedonotmeetneeds.GoodCorporateCitizenshipUsereverselogisticscapabilitiesforaltruisticreasons,suchasphilanthropy.Theseactivitiesenhancethevalueofthebrandandareamarketingincentivetopurchasetheirproducts.Source:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998STRATEGICUSEOFREVERSELOGISTICSCleanChannelCleanoutcustomerinventories,sothattheycanpurchasemorenewgoods.Fresherinventoriescandemandbetterprices,whichinturn,protectsmargin.

LegalDisposalIssuesAslandfillfeesincrease,andoptionsfordisposalofhazardousmaterialdecrease,legallydisposingofnon-salvageablematerialsbecomesmoredifficult.RecaptureValueandRecoverAssetsLargeportionofbottom-lineprofitsisderivedfromassetrecoveryprograms.Profitderivedfrommaterialsthatwerepreviouslydiscarded.STRATEGICUSEOFREVERSELOGISTICSOperationalFactorsinReverseLogisticsSystemsAholisticviewofreverselogisticsisessentialforaprofitableandsustainedbusinessstrategy.Source:DowlatshahiS.Developingatheoryofreverselogistics.Interfaces;May/Jun2000REVERSELOGISTICSCHALLENGESRetailer–ManufacturerConflictInefficienciesthatlengthenthetimeforprocessingreturns:ConditionoftheitemValueoftheitemTimelinessofresponseTheyhavetodevelopaworkingpartnershiptoderivemutualbenefit.ProblemReturnSymptomsLackofinformationabouttheprocess.Ifyouaren’tmeasuringit,youaren’tmanagingit.Source:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998REVERSELOGISTICSCHALLENGESCauseandEffectPoordatacollectionleadstouncertaintyaboutreturncauses.Improvingthereturnprocessdecreasescosts.Beingabletoseedefectiveproductsandtotrackreturnissues.ReactiveResponseGovernmentregulationorpressurefromenvironmentalagencies.Ithasnotbeenpossibletojustifyalargeinvestmentinimprovingreverselogisticssystemsandcapabilities.BARRIERSTOGOODREVERSELOGISTICSNumerousbarrierstogoodreverselogisticsexistManagementinattentionandthelackofimportanceofreverselogistics.Corporatestrategyforhandlingreturnsandnon-salableitems.Legalissuesdonotappeartobeamajorproblem.Companiescannotcontinuetooverlookthenecessityofgoodreverselogisticsmanagement.Source:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998KeyReverseLogisticsManagementElementAvoidancePreventiveMeasures:

ToincreaseQuality–minimizereturnsbydefectiveproductsReturnagreementswithretailers/distributorsCustomerService–providingtoll-freenumbersthatcustomerscancallbeforereturningproductsGoal:designitsmerchandiseandsystemsinamannerthatwillminimizereturnssincetheimpossibilityoffullypreventcustomersfromsendingpurchasedproductsbackKeyReverseLogisticsManagementElementCompactingDispositionCycleTime

Importanttoknowbeforehandwhattodowithreturnedgoods

Whenmaterialoftencomesbackintoadistributioncenter,itisnotclearwhethertheitemsare:defective,canbereused,orrefurbished,orneedtobesenttoalandfillThechallengeofrunningadistributionsysteminforwardisdifficult–employeeshavedifficultymakingdecisionswhenthedecisionrulesarenotclearlystatedandexceptionsareoftenmadeGoal:toreducetheamountoftimetofigureoutwhattodowithreturnedproductsoncetheyarriveKeyReverseLogisticsManagementElementReverseLogisticsInformationSystemsOneofthemostseriousproblemsthatthecompaniesfaceintheexecutionofareverselogisticsisthedearthofagoodinformationsystems.Toworkwell,aflexiblereverselogisticsinformationsystemisrequired.

ThesystemshouldcreateadatabaseatstorelevelsothattheretailercanbegintrackingreturnedproductandfollowitallthewaybackthroughthesupplychainInformationsystemshouldalsoincludedetailedinformationprogramsaboutimportantreverselogisticsmeasurements,suchasreturnsrates,recoveryrates,andreturnsinventoryturnoverUsefultoolssuchasradiofrequency(RF)arehelpful.Newinnovationssuchastwo-dimensionalbarcodeandradiofrequencyidentificationlicenseplates(RFID)maysoonbeinuseextensivelyKeyReverseLogisticsManagementElement

CentralizedReturnCenters(CRC)ConsistencyindispositiondecisionsandminimizationsoferrorsSpacesavingadvantageforretailerswhowanttodedicateasmuchoftheshopfloortosalablemerchandiseaspossibleLaborcostreduction–duetospecialization,CRCemployeescantypicallyhandlereturnsmoreefficientlythanretailclerkscanTransportationcostreduction–emptytruckloadsusedtopickupreturnmerchandiseAsellingtool–theeasydispositionofreturneditemsrepresentcanbeanappealingservicetoretailers,andmaybeadeal-makerforobtainingorretainingcustomersFasterdispositiontimes–itallowsthecompanytoobtainhighercreditsandrefundsstayidleforsmallerperiodsoftime,thuslosinglessvalueEasiertoidentifytrendsinreturns–anadvantagetomanufacturerwhocandetectandfixqualityproblemssoonerthanifthesereturnswerehandledentirelybycustomerservicepersonnelKeyReverseLogisticsManagementElementZeroReturns

Aprogramwherethecompanyinquestiondoesnotacceptreturnsfromitscustomers.Rather,itgivestheretaileranallowablereturnrate,andproposesguidelinesastotheproperdispositionoftheitems.SuchpoliciesareusuallyaccompaniedbydiscountsfortheretailerItpassesthereturnsresponsibilityontotheretailer,whilereducingcostsforthemanufacturerordistributorThedrawback:themanufacturerlossescontroloveritsmerchandiseReverseLogisticsandtheEnvironmentEnvironmentalconsiderationshaveagreaterimpactonmanylogisticsdecisions.Forexample:ManyproductscannolongerbeplacedinlandfillsFirmsforcedtotakebacktheirproductsattheendoftheirusefullifetime.DecreaseoflandfillavailabilityandincreaseinLandfillcosts.GreenLogisticsandReverseLogisticsReverseLogisti