Abstract in this article, we discuss ways of actively influencing product returns and we review data-driven methods for forecasting return flows that exploit the fact that future returns. Good reverse logistics and returns management programs are unlikely to appear out of nowhere companies have to work closely with their suppliers and customers to make these processes work well at first glance, handling the reverse flow may seem roughly equivalent to managing the forward movement of new product moving through primary channels. Reverse logistics supporting industry leaders in trade in, buy back, take back and resale distribution for the canadian market success is not just getting a quality product to market. An important challenge arising in reverse logistics supply chains is the effective use of returns so as to maximize the value of this resource to this end, decisions at strategic, tactical, and operational levels should explicitly incorporate information about return flow characteristics, primarily.
According to estimates, reverse logistics (rl) costs in the us are about $35 billion per year, or 4 percent of total logistics costs product returns, a large proportion of rl activities, average about 6 percent of sales, although this varies returns are much higher, for example, for books. The importance of reverse logistics successful retailers understand that managing reverse logistics effectively will have a positive impact on their bottom line industries that have not had chain” to activities that encompass product returns, repairs, and. Simplify and control product returns if you’re not managing your reverse logistics network then you’re leaving money on the table by managing the return, testing and redistribution of your products, you can recover valuable assets and improve your bottom line. Figure 3: ice model for managing product returns (bernon and cullen, 2007) the ice model provides a way forward for managing product returns at the centre of the approach is a hierarchy of product research executive summaries series tools to manage reverse logistics.
Reducing returns, unleashing profitability for the past 10+ years, consumer returns has been the only peer-led event for reverse logistics and returns management professionals who are looking to trim costs through return reduction strategies and the optimization of the reverse supply chain. With returns amounting to 81 percent of sales, recovering 50 percent by sending a product back to the vendor or selling it puts four percent back on the bottom line, says curtis greve, managing director of the non-profit reverse logistics & sustainability council. And mitigating the cost of managing returns not long after you make the replacement order, a bicycle 1 nternational cooperative nternational a wiss entity emer rms of the networ of independent rms are afliated future-proof your reverse logistics 5 handling and disposition of product returns, components and packaging is a real concern. Reverse logistics defined as the return/exchange, repair, refurbishment, remarketing and disposition of products has become an important way for companies to improve visibility and lower costs across the supply chain in addition, for many organizations, reverse logistics (also known as returns management) can represent a significant source of untapped profitability.
Product returns, long the bane of industries like publishing, pharmaceuticals, and food retailing, have become an increasing burden for makers and sellers of almost every kind of good. Gain scale & agility in your reverse supply chain we get it - sometimes it comes down to “buy or build” if you’re going to setup up, operate, and innovate a top-notch reverse logistics pipeline it takes skill, knowledge, and capital investments. Have varying degrees of success managing reverse logistics—as well as varying recovering lost profits by improving reverse logistics 6 seasonal returns parts and repair return to stock returns parts and repair reverse logistics pipeline return to stock return to oem liquidate in. Reverse logistics refers to the process of managing products past the manufacturing stage this flow of returned materials from consumer to retailer, retailer to distributor, or distributor to manufacturer, is also known as the reverse supply chain. Reverse logistics begins and ends with a business case, and the ability to execute on that business case to cover the cost of returns, which are an increasing cost in the retail environment sign up for the scm professional newsletter.
Managing product returns for reverse logistics samir k srivastava management development institute, gurgaon, india, and rajiv k srivastava indian institute of management, lucknow, india. Dhl can design a reverse logistics network that manages the return of your product from point of origin through to redistribution we understand the costs of an idle asset, so our team will work with you to implement processes that keep your returned goods moving. Managing reverse logistics to improve supply chain efficiency and reduce cost reverse logistics can represent a significant chunk of supply chain cost, and it’s typically not very well managed, it’s time to manage reverse as an integral part of supply chain management.
With the significant financial and operational impact of returned product, it is more important than ever to create a seamless process for managing both retail and manufacturer returns. Return management: returns and recalls are an unfortunate, yet inevitable part of the supply chain hollingsworth is the ideal return management partner to help minimize the costs of reverse logistics and ensure the best possible customer experience. The reverse logistics process in the supply chain and managing its implementation by joseph raymond huscroft, jr a dissertation submitted to the graduate faculty of auburn university product returns and reverse logistics can be a mutually beneficial situation for both the. Reverse logistics is an emerging area of critical importance for senior management of all companies across all industries such as e-retail, automobiles, telecom, shipping etc companies need to.
Our mission is to provide retailers and manufacturers with a comprehensive green approach to managing, remanufacturing, recycling and selling returned consumer products creating profits from returns. The quality, quantity, and timing of product returns need to be carefully managed otherwise, companies may find themselves flooded with returned products of such variable quality that efficient.
Purpose – the purpose of this paper is to present a framework to manage product returns for reverse logistics by focusing on estimation of returns for select categories of products in the indian. Product returns have often been viewed by customers as a necessary evil, a painful process and, usually, unavoidable for retailers, manufacturers and distributors, returns have often been seen as a nuisance, a cost center and an area of potential customer dissatisfaction. Developing reverse logistics metrics to manage and improve your reverse logistics operations is an essential strategy for both original equipment manufacturers (“oem”) and for third party reverse logistics service providers ( “ 3 p s p ” ). Yusen logistics has developed a reverse logistics program that manages your product returns and allows you to generate revenue from them while limiting your environmental impact we provide a complete end-to-end service that offers you a system for managing product returns, including a.