The process of moving items or services backward in the supply chain from the point of sale is known as reverse logistics. The term “reverse logistics,” according to the Reverse Logistics Association (RLA), refers to any actions related to a product or service following the point of sale. The ultimate purpose of reverse logistics is to improve or make aftermarket operations more efficient, cutting costs and environmental resources. In today’s competitive market, all company organizations must consider reverse logistics.
In today’s economic environment, no firm can afford to overlook the relevance of Reverse Logistics, which has become a vital aspect of Supply Chain Policy and Operations. For many decades, organizations did not recognize the relevance of reverse logistics, but now the law and customer relationship management challenges compel businesses to pay close attention to these issues.
Several items are returnable in various areas; consequently, every firm should be prepared to handle returns at any moment to please clients and adhere to legal requirements. In this research, there is the identification of different sorts of returns as well as the reverse logistics process using a comparison with a production system. In the end, there is coverage of best practices for reverse logistics management.
Logistics in the supply chain context deals with the movement of commodities, equipment, and people from starting point to the point of destination. Forward flow is a flow from the supplier’s supplier to the customer’s customers. However, there are times when returns of any kind necessitate the backward movement of commodities, known as reverse logistics. The Logistics Management Council released two books on reverse logistics. The stock was the first to recognize reverse logistics as a sector significant to business and society.
One year later, Kopicki et al. focused on the concept and profession of reverse logistics, highlighting prospects for reuse and recycling. Kostecki explores the marketing benefits of reusing and . Stock reports show how to set up and carry out reverse logistics initiatives. Many models for multi-items and multi-locations are created in the literature using Liner programming. The Reverse Logistics Operational Framework framework is not bound to any item, venue, or party.
The advantage of this framework is that it encompasses all operational stakeholders and results in a Social, Stakeholder, Economic, and Environmental (SSEE) gain framework that optimizes their gains. To comprehend the framework’s successful operation, people must investigate the obstacles that generate roadblocks.
RL is a sophisticated procedure that includes the complete reverse product life cycle. The process must be solid and customer-focused for clients to be pleased with the results. Therefore, it is appropriate to convey the findings by tackling the RL process and then validate conclusions with data from trade industry practices.
Use of IT, information sharing and collaboration
Due to the requirement to provide for and increase visibility into items in motion across the reverse supply chain, RL is a .
Management vision, leadership and commitment
As with any organization, good leadership in terms of leadership commitment, financial and human resources, and investment in RL technological advancements are critical to the firm’s or any of its activities’ success.
Assessing the value and performance of RL process
When handled properly, RL may provide benefits such as competitive advantage, enhanced customer satisfaction, improved visibility, and more sustainable production through improved space usage, personnel planning, and inventory management. Some values inherent in a well-managed RL may also be found in functional sectors of the company.
Reverse logistics operations and activities take place on a regular basis in the manufacturing industry, with or without the participants’ understanding. For manufacturing organizations to remain competitive, reverse logistics is critical. Furthermore, having a robust reverse logistics operation in place leads to cost savings, efficient resource utilization, greater customer satisfaction and loyalty, reduced returns process time, and a green image.
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