There is no one best design for a reverse logistics network. The number of publications on the topic of reverse l. Economic growth of a company remains its strategic objective, but today it cannot be achieved without social and environmental care. Waste in reverse logistics processes may vary from the normal concept of waste found in a production environment, but it can be identified, classified and either be reduced or eliminated as well as creating tremendous savings potential by applying lean principles, kaizen methods and reengineering in every phase of the supply chain. Reverse logistics and the role of fourth party logistics provider. Sep 12, 2019 definition of reverse logistics reverse logistics consists of all activities which are performed after the sale of a product. The role of reverse logistics in the concept of logistics. The journals cover such as reverse logistics, return logistics. Combining or separating forward and reverse logistics dtu orbit. Reverse logistics includes all of the activities that are mentioned in the definition above. Reverse logistics is a process that enables organizations to become more environmentally capable through recycling, reusing and reducing the amount of materials used. However, efforts to synthesize the research in an integrated body of knowledge seem comparatively limited.
Traditionally, reverse logistics has been viewed primarily as the process of recycling products. Reverse logistics has been interpreted many different ways by industry players. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. They can therefore benefit a great deal from efficient management based on information and optimization systems. Reverse logistics involves a number of different operational processes.
Reverse logistics is an excellent strategy environmentallyfriendly. This reverse activity includes take back of damaged products, renewal and enlargement of inventories through product take back remanufacturing. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Consequently, carter and ellram 18 put forward the definition that reverse logistics is a process whereby companies can become more environmentally. This is because as the supply chain evolves and increases in complexity as a whole, so does reverse logistics.
Economic and supply chain issues related to reverse logistics are examined, and a working definition of reverse logistics is developed. The final research paper addresses reverse logistics performance metrics within an organization. A related definition of reverse logistics emphasizes both the focus of reverse logistics on the backward flow of materials from customer to supplier and the goals of maximizing value from the returned item or assuring its proper disposal rogers and tibblembke 1999. The goods move from the end user back to the seller or manufacturer. Some use the term literally, treating it as logistics activity in the reverse direction. The reverse logistics process in the supply chain and. Reverse logistics is the process of receiving returned merchandise with the purpose of proper disposal or recapturing value. Reverse logistics supply chain management basics datex. Future directions of reverse logistics in gaining competitive. Reverse logistics concerns activities associated with the handling and management of equipment, products, components, materials or even entire technical systems to be recovered for succinctness we. Growing green concerns and advancement of green supply chain management concepts and practices. Reverse logistics is one of the indexes which characterize sustainable development of the company. Pdf a framework for reverse logistics researchgate. Reverse logistics, a key function of the supply chain, is a complex and often difficult to navigate process.
Logistics definition is the aspect of military science dealing with the procurement, maintenance, and transportation of military materiel, facilities, and personnel. Most research focuses only on a small area of reverse logistics network, such as network design, production planning or environmental issues. Origins and definition the word of logistics originates from the ancient greek logos, which means ratio, word, calculation, reason, speech, oration. It can include returns from ecommerce and retail, as well as components for refurbishing and remanufacturing. There is a lack of empirical research regarding reverse logistics metrics.
May 10, 2011 in this paper, reverse logistics activities and key reverse logistics management methodologies are discussed, as well as their benefits and the barriers to successful implementation. The branch of science having to do with procuring, maintaining and transporting material, personnel and facilities. It means the movement of goods from a typical final destination back into the supply chain. Reverse logistics is the process of planning, implementing and controlling the. The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess. Reverse logistics is any process that involves moving things from the customer back to the producer. Reverse logistics meaning in the cambridge english dictionary. Keywords closedloop supply chain, reverse logistics. Reverse logistics can be explained as the process where the company takes back the goods for some reason, and green logistics is when the company tries to adapt environmental friendly ways to the logistics chain. Stock defined reverse logistics as the role of logistics in product returns, source reduction, recycling, materials substitution, reuse of materials, waste disposal and refurbishing. Reverse logistics programmes can result in significant cost savings when the proper systems are put into place schwartz, 2000. The definition of reverse logistics has been discussed for some time, but without a formal conclusion. The management or process after the sale of a product involves reverse.
Pdf reverser is a powerful and userfriendly tool to reverse and extract images and texthtml in a pdf file. For companies, this means supply disruptions, surging price volatility, and supply chain risks. Reverse supply chain reverse supply chain refers to the movement of goods from customer to vendor. Reverse logistics can be defined as the reverse process of logistics. Wowtron pdf merger is an easier, rapid desktop pdf tool which allows you to combine two or multiple image documents or acrobat pdf documents into one single pdf document. This article will identify the reverse logistics exception and describe how it can be used to reduce a shippers responsibilities under the hmr. This is the reverse of the traditional supply chain movement of goods from vendor to customer.
This thesis tries to understand the basic concepts of reverse logistics. Reverse logistics strategies and their implementations. However the lack of awareness on the benefits of the rl both from economic and environment angles is a major factor creating the resistance to complement the. Reverse logistics is a small part of the total logistics of a company. Definition of reverse logistics and applicability and hazard classes definition of reverse logistics in the nprm, we proposed to define reverse logistics as the process of moving goods from their final destination for the purpose of capturing value, recall, replacement, proper disposal, or similar reason. What is more, the notions of logistics management were discussed, and the reverse logistics concept along with the. Sep 17, 2020 reverse logistics is the process of moving products backward through the supply chain. By this means, we put in context the driving forces for reverse logistics, a typology of return reasons, a classification of products, processes and actors. Companies use reverse logistics to implement proper product disposal, to retrieve parts, or to refurbish used products. Rl magazine is a monthly digital publication of the reverse logistics association and is the only magazine in the world completely focused on the issues and nextbest practices of the reverse logistics industry. Today, definitions vary depending on what company or segment of industry is attempting to define it.
Reverse logistics is a movement of materials from a typical final consumption in an opposite direction in order to regain value or to dispose of wastes. It is a process of flow of goods or material which are unwanted or defective through the logistics chains to the manufacturer so that it can be recycled, reused, or disposed of properly. This is similar to the definition given by stock in 1992 p. After this, the two companies reverse and green logistics will be analyzed and compared to see. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage. It covers all the activities that determine the fate of these returned goods. Reverse logistics deals with the processes associated with the reverse stream from usersowners to reusers. Reverse logistics definition reverse logistics reverse logistics may be defined as a process of moving goods from their. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers. A company has varied disposal options to choose once a product has been returned. Reverse logistics pdf software free download reverse. The importance of this definition is the explicit business point of view instead of other factors like legal, social responsibil ities, or even operational and technical. Scope of logistics service provision there is no universally agreed definition for logistics services, and the role may be interpreted in very different ways across the region. Pdf an examination of reverse logistics practices myles.
The study also tries to look at the environmental aspects of reverse logistics. Reverse logistics deals with the handling of the goods that are being returned to the manufacturer by the customer. Pdf in this paper we define and compare reverse logistics definitions. Retailers see reverse logistics as a way to get product that has been returned. Ecommerce and e logistics reverse and green logistics these areas interact to a large degree with other functions of the firm, and with other elements of the supply chain. Air mobility command amc plays an integral role in this process by providing transportation assets for support. The concept of reverse logistics is an important part of any supply chain in which the military participates. As firms develop core competency in the fulfillment process, the core competency on the reverse logistics too may be difficult to attain for the same firm. In other words, reverse logistics involves taking products back from customers and reworking those products or parts of them to create a new product that can be sold. Jun 10, 2019 reverse logistics is the opposite of the standard supply chain. Aug 21, 2017 a definition of reverse logistics with examples. We end up this chapter by relating all the issues together. Reverse logistics concerns activities associated with the handling and management of equipment, products, components, materials or even entire technical systems to be recovered.
The transportation of hazardous materials as reverse logistics. While many retail organizations run bestinclass transportation and logistics systems and processes, some have neglected reverse logistics as a primary focal. Reverse logistics is for all operations related to the reuse of products and materials. It is evident that reverse logistics as a field of study gaining momentum as an important part of the supply chain management process. Display detailed reversing progressreversing result4. Reverse logistics rl may be defined as the management of returned materials from customers, including their restoration, reengineering, recycling, liquidating or disposal of waste in. Jul, 2019 the definition of reverse logistics at 171. Reverse logistics maturity model ellen macarthur foundation. This paper provides content analysis of scientific literature on reverse logistics. The theoretical part was based on reverse logistics and mining waste related literature and. Information and translations of reverse logistics in the most comprehensive dictionary definitions resource on the web. Reverse logistics refers to such streams flow in which there is the possibility of creating value from. The difference is that reverse logistics encompasses all of these activities as they operate in reverse.
Reverse logistics, either on what the ra nge of activities should be included within its scope or how to denominate each of its options in a not fuzzy way. Mar 03, 2014 council of logistics management conceptualised rl as the role of logistics in product returns, reuse of materials, waste disposal and refurbishing, repair, and remanufacturing stock 32. Reverse logistics and the role of fourth party logistics. Reverse logistics rl is an innovation able to bring about immense benefits for organisations in a wide range of industries through enhancing the performance of supply chain procedures. Urban goods transport is defined as the delivery of consumer goods. This includes business processes that involve transport from distribution endpoints such as retail locations back in the supply chain to locations such as warehouses and factories. A secondary market is defined as a selling channel outside of the primary market. Reverse logistics is the process in which products e. The reverse logistics process can be divided into two categories depending on the areas of reverse flow which in turn comprises of primary products, or primary of packaging.
Jan 08, 2014 the purpose of this research is to identify the barriers faced in the adoption of reverse logistics rl and the respective overcoming schemas provided by the logistics centers lcs. Reverse logistics supply chain management basics datex corp. The concept of reverse logistics is an integration of social. The general requirements and exceptions for reverse logistics at 173.
Reverse logistics can also help a company reduce waste and improve their environmental footprint. Sabina nylund reverse logistics and green logistics. The council of logistics management has defined reverse logistics as. We start by giving an understanding framework of reverse logistics. This research paper represents an indepth look at the amc reverse logistics process to see if its implementation is meeting. Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant. Logistics definition of logistics by merriamwebster. At the same time, globalization and increased use of technology are changing customer expectations and the way services are delivered. A definition reverse logistics rl is the efficient, cost effective flow of materials, inprocess inventory, byproducts, finished goods and related information from the point of use to the point of origin in order to recapture value refurbishing and remanufacturing activities may also be included in the scope of reverse logistics. In this paper we define and compare reverse logistics definitions. An examination of reverse logistics practices rogers. In the face of such challenges, levers such as increasing efficiency. Rl is defined as the process of moving goods from their typical final.
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