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Reverse Logistics

ABHIJEET SINGH
Reverse Logistics

The process of moving goods from their place of use, back to their
place of manufacture for reprocessing, refilling, repairs or waste
disposal.

It is a planned process of goods movement in reverse direction


done in efficient and cost-effective manner through the organized
network. It can be standalone or integrated system in companys
supply chain.
Why Reverse Logistics?

Growing public concern for environmental pollution

Government regulations on product recycling and waste


disposal

Growing consumerism

Stiff competition
Reverse Logistics Scope
Refilling
1. LPG cylinders, soft drink bottles ex Coca cola, Pepsi , Container Lease
Corporation Ltd(CLCL)
Product recall
1. Defective product,
2. Shelf life over,
3. Quality complaints.
4. Violation of govt. Regulations,
5. Product not giving guaranteed performance,
6. Defective design,
7. Ethical considerations,
8. Save companys image,
9. Violation of govt. Regulations,
10. Incomplete product
Reverse Logistics Scope

Repairs and Refurbishing


1. Used and returned within warranty period
2. All consumer durables such as television sets, audio
systems, washing machines etc.
3. Chargeable service for period beyond warranty
4. Operates through companys service center
Remanufacturing
1. Used product for quality up-gradation
Waste disposal

1. Recycling the waste


Three Stage Reverse Logistics
System for Used Car Recycling
Stage III Stage II Stage I

Steel smelters
Customer
Car
dealer
Customer
Battery suppliers
Customer
Packaging Car Car
manufacturers producer dealer Customer

Tyre producers Customer


Car
dealer Customer
Components
producers
System Design Considerations

Product location identification

Product collection system

Product recycling/disposal centres

Documentation system

Cost implications

Legal issues
Reverse LogisticsA Competitive Tool

Enhances service capability

Extends value-added service to customer

Creates switching barriers to customers