Understanding Reverse Logistics Benefits
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ScribdTranslationsUnderstanding Reverse Logistics Benefits
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5
Reverse logistics
What is it?
It refers to the management procedure of the
supply chain that moves the
products or materials from the
consumer or the user until the
manufacturer.
It refers to the reverse flow of the
traditional process that has been
converted into one of the main ones
axes of reputation and service of a
company.
Advantages
Some of the potential advantages of implementing a program
The following are mentioned regarding Reverse Logistics:
● Reduction of the 'surprise' or uncertainty regarding the arrival of PFU.
● Reuse of some materials.
● Possibility of the company to encompass other markets.
● Greater trust in the client when making the decision to
purchase.
● Significant improvement of the company's image before the stakeholders.
consumers.
● Obtaining feedback information about
product.
Disadvantages
● Preliminary studies are required for the establishment
of decision policies on the subject.
● It is not just a simple manipulation of the product.
● All departments of the company are related to the
activities to be implemented in Reverse Logistics.
● The inputs to a Reverse Logistics process are
unpredictable.
● Inspections must be conducted on each product of
individual and meticulous form.
Types or modalities
Return logistics: it is responsible for the
management of returns from the distribution point or
from the client to the center from which the product originated. It is
one of the most important in e-commerce and each
once again gaining more strength with the rise of sales through
Internet.
Waste logistics: it refers to recycling,
treatment or recovery of waste for its subsequent
exploitation or to avoid damage to the environment.
A classic example is the recovery of bottles.
of beer or soft drinks.
5.1.2. Returns of the
clients
What are customer returns?
The return can be understood as the restoration of something to its state.
previous. In the field of commerce, the idea of return applies when
a buyer is not satisfied with the received merchandise and decides
return it to the seller, in exchange for them giving back the money again
that had been disbursed for the purchase.
Reverse logistics in the return process
Interest in reverse logistics has grown in recent years, about
all due to the high percentage of returns that the
companies have to face. This has allowed for
they developed new activities that just a few years ago were
practically unknown in the business world.
Reverse logistics in the return process
Currently, while retailers are experiencing
solutions to reduce returns and improve their management,
larger chains are also exploring the field of logistics
inverse to reinsert the returns into the commercial chain in a way
effective and efficient in terms of costs, and, if possible, recover part of the
value.
Reverse logistics in the return process
A good return policy can mean gaining
competitiveness and customer loyalty
Why reverse logistics?
Reverse logistics also manages those products that the user has
discarded, not because they are defective products, but because they have reached the
end of their useful life. They are called 'end-of-life products'. These products can
represent a business opportunity for many economic agents. In addition,
they will require special attention, as they may represent a new source of
raw materials, being susceptible, therefore, to being incorporated in some way into
the productive chain.
Main reasons for merchandise returns
I. Breakdowns
II. Quality
III. Due date
[Link] of presentation
[Link] of season
VI. Change of collection
VII. Excess inventory
VIII. Agreement on purchases
IX. End of event
X. Receipt balance
Why manage returned products?
Due to being a complex process for various reasons, including the different use or destination of the same.
since its reuse by sending it to the same market or to a different one after verifying its good
state or having made some small repair operation; The recovery of some of
the product components after being re-inspected and cleaned and using them in the
production of new products either by maintaining their original functionality or not; until their recycling,
dismantled and/or destroyed
Why manage returned products?
Taking into account the different needs to return the merchandise from its
destination place to its place of origin or to another specified one such as
that it involves defective products in manufacturing, broken or damaged during
its transportation or handling, seasonal, excess inventory, recyclable,
obsolete or dangerous;
General return process
What treatment do returned products receive?
Repair, restoration or remanufacturing. - The three options imply a
refurbishment and improvement of product quality. These options are
they differ by the complexity of the treatment, so that the repair
it requires less effort than restoration, and this, in turn, less than re-
manufacture.
What treatment do returned products receive?
Cannibalization.- Cannibalization is based on the recovery of certain
components or parts to be incorporated into other products. For example, the
recovery at the junkyard of a car, a washing machine, etc.,
certain components that are sold as spare parts.
What treatment do returned products receive?
Recycling - Recycling is commonly understood as the repurposing.
of materials, that is, the recovery of materials to be used again
used as raw material in a new manufacturing process.
Settlement.- Although it would not really be a valid alternative of
recovery, this would be the last resort in the elimination of the
products at the end of their useful life. And not only because it is necessary to try not to
dismiss materials that may be suitable for reuse.
2.5.2. Quality alerts or
recalls
What is a RECALL?
A RECALL is a procedure carried out by a
company, which consists of withdrawing a product from the market,
when there is suspicion or certainty that it violates the laws
current food standards or that the standards are transgressed
quality standards established by the company for that market.
Alternatives to RECALL
Product or market recovery
withdrawal
Stock recovery
RECALL classes
Class l: Situation that presents a danger to the
health where there is a reasonable probability of
that the use of the product will cause consequences
serious, adverse to health, or death.
Clase ll:Situación que presenta un peligro hacia la
health where there is a remote probability of
that use of the product causes consequences
adverse to health.
Class III: Situation where the use of the product does not
will cause adverse health consequences.
Causes
● Allergens
● Contamination by microorganisms
pathogens.
● Microorganism contamination
decomposers that affect the
quality or safety of food.
● Physical pollution.
● Packaging defects. Errors in the
labeling, undeclared nutrients or
incomplete nutritional information.
What to do?
It is required to develop and implement a The purpose of implementing this
Product Withdrawal Plan product phase-out plan is:
Defective. Which includes:
● Protect the consumer.
● Retreat team formation ● Maintain the image of the
products. brand.
● Communication (crisis management). ● Reduce the risk.
● Product recovery. ● Minimize responsibility.
● Destruction of the product. ● Maintain good relationships
with regulatory agencies.
What can motivate a RECALL?
Given that to protect the population, in some
cases of food safety failures are necessary
remove the products from the market quickly and
effective, it is important to keep in mind some
situations that can give rise to this
determination
● Customer complaints
● Supplier information
● Information generated by company controls
Organism
In Mexico, the body responsible for executing the procedures to carry out the
the product recall is the Federal Commission for the Protection against Sanitary Risks,
COFEPRIS.
COFEPRIS defines the withdrawal of the product as: 'To remove from the market those products
that do not comply with the applicable provisions well, such compliance is only
partial.
COFEPRIS, in conjunction with other agencies such as PROFECO and SAGARPA, is
are responsible for generating alerts and conducting evaluations on the products that
they enter and are marketed in the Mexican market.
2.5.3. Service to parts
What is PPAP?
PPAP, for its initials Production Part Approval Process, is one of the
tools also known as Core Tools and is used in the chain of
supply to establish the trust of the components and processes of
production of suppliers primarily in the automotive sector.
Elements of the PPAP
● Design Records
● Engineering change authorization
● Engineering Approval
● Process Flow Diagram
● Control Plan
● Measurement System Analysis (MSA)
● Dimensional Results
● Material Records / Tests
● Initial Studies of the Process
● Qualified Laboratory Documentation
● Appearance Approval Report
● Sample pieces
● Masterpiece
● Verification Aids
● Specific customer requirements • Part Submission
Warrant (PSW)
The supplier must have the complete approval of the customer
● A new part or product (i.e.
a specific part, material or color no
forecast.
● Correction or discrepancy about a
previously supplied part.
● Product modified due to change of
engineering that affects the records of
design, specifications or materials.
● This is the case where work is done internally on the product itself,
Once received in the warehouse, it basically consists of data collection.
● These are the cases where the original manufacturer makes a recognition.
economic to the firm, if it is demonstrated that the merchandise that was previously
imported meets certain warranty conditions and is sent to you
again through an export.
It depends more on the client and the business agreements with whom they are.
manufacturers, suppliers, etc.
● The process in this case involves carrying out on the product coming from the
reverse logistics a certification of its decommissioning through a test
photographic.
It almost explains itself, basically reverse logistics is
largely done for these purposes. The added value in
our case is the management and compliance control.
2.5.4. Recycling
Recycling
In this case, the aim is to recover the material that is a residue from another.
product to be used later as a raw material in the production of
one next that can reach levels of quality of an original product due to
the use of increasingly advanced new technologies.
It is a treatment that allows not only the use of waste with which
the volume of waste is reduced, the use of other raw materials decreases
achieving energy and natural resources savings.
Sustainable Supply Chain Management (SSCM)
Set of management activities that deals with returning products and
materials to production processes and markets, to achieve advantages
competitive, revaluation of these materials and reduce the impact of these
products in nature.
● Return the products and materials to the production processes.
● The revaluation of materials or products.
● Reduce the impact of these products on nature.
References
● López, A. L. (MAY 23, 2016). logispyme. Retrieved from
Definition of reverse logistics.
● GCL training. (Unknown). 'Manual Recall'. September 13, 2016, from GCL training website:
Anonymous. (October 18,
2016).
● Callaba, J.P.(2004).Logistica [Link].
● Cabeza, D. (2012).Logística inversa en la gestión de la cadena de [Link]
BOOKS.
● What is product withdrawal in the food industry? September 09, 2016, from GMX Site
Isabel Bastos and Ana Baubeta. (2007).