Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse. Scm according to the council of supply chain management professionals. Reverse logistics is a strategy in supply chain management in which a company collects and reuses some part of their distributed good. In this step, the company and the products are described. Heres what you need to know about reverse logistics and how it can help your business. Reverse logistics can be defined as the reverse process of logistics. An example of a supply chain in the following section we present a brief discussion on the important issues in lm. Reverse logistics is for all operations related to the reuse of products and materials. 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. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Most are familiar with the traditional, straightforward side of logistics. Its the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it.
Reverse logistics definition reverse logistics reverse logistics may be defined as a process of moving goods from their. Reverse logistics deals with the handling of the goods that are being returned to the manufacturer by the customer. Reverse logistics pdf software free download reverse. Pdf in this paper we define and compare reverse logistics definitions. In its turn, business dictionary gives the following definition of reverse. The goods move from the end user back to the seller or manufacturer. Since reverse logistics involved many more steps and processes as materials move back through the supply chain, its understandable that it takes up a notable amount of all logistics costs in the u. The products may be resold or disposed of permanently. The definition for logistics given by the council of logistics management is. Reverse logistics is a process that enables organizations to become more environmentally capable through recycling, reusing and reducing the amount of materials used.
There is a lack of empirical research regarding reverse logistics metrics. Reverse logistics areas of activity and reverse steps. Typically, a supply chain network creates a path for companies to reach consumers. The general requirements and exceptions for reverse logistics at 173. Therefore, drawing on the council of logistics managements definition of logistics, we define reverse logistics as. 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. Reverse logistics practices have been in existence for a long time, especially in the automotive industry, where manufacturers try to recover value from recycling car parts. Nov 22, 2017 reverse logistics refers to all supply chain and logistics operations relating to the reuse and recyclability of products and materials. 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. It is difficult to estimate the cost in reverse logistics management as many companies do not have systems to estimate. The role of reverse logistics in the concept of logistics.
However, efforts to synthesize the research in an integrated body of knowledge seem comparatively limited. Information and translations of reverse logistics in the most comprehensive dictionary definitions resource on the web. When a product is moved through the supply chain network from the distributor to the customer, this is the traditional logistics, or forward logistics. The final research paper addresses reverse logistics performance metrics within an organization. Jul, 2019 the definition of reverse logistics at 171.
At the same time, globalization and increased use of technology are changing customer expectations and the way services are delivered. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage. Jul 10, 2017 reverse logistics, a supply chain management technique, might be the answer your company is looking for. Pdf reverser is a powerful and userfriendly tool to reverse and extract images and texthtml in a pdf file. Reverse logistics is a small part of the total logistics of a company. Until recently, many businesses had the same reverse logistics strategy treat it as a burden and avoid it as much as possible. The process of planning, implementing, and controlling. The proposed method is formed by five main steps presented in figure 3. Comprehension and implementation of reverse logistics are also connected to the understanding of the life cycle of a product, which is related to the environmental impact assessment referring to a product or service, from the acquisition of raw material to its final. This article analyzes the definition of reverse logistics in foreign and russian literature, highlights the problem of indistinct concepts in russian science in the form of several terms that define one phenomenon, namely. The first attempts to define the reverse logistics in the environmental aspect. Benefits of an efficient reverse logistics process arcbest. 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. What is reverse logistics reverse logistics stands for all operations related to the reuse of products and materials.
The study also tries to look at the environmental aspects of reverse logistics. Reverse logistics refers to such streams flow in which there is the possibility of creating value from. The council of logistics management clm defined reverse logistics using the definition of logistics. Dec, 2010 relationship with reverse logistics performance in the areas of two measures, cost effectiveness and process effectiveness. Reverse logistics is any process that involves moving things from the customer back to the producer. Hazardous materials may be offered for transport and transported in highway transportation under this section when they meet the definition of reverse logistics as defined under 171. The worldwide legislations on hazardous materials weee and rohs, demand reverse logistics for repairables. Reverse supply chain reverse supply chain refers to the movement of goods from customer to vendor. Reverse logistics what is reverse logistics ups united. Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or. Reverse logistics processes and plans rely heavily on reversing the supply chain so that companies can correctly identify and categorize returned products for disposition, an area that offers.
This is the reverse of the traditional supply chain movement of goods from vendor to customer. Switch coordinations is arrangement of exercises that is led after clearance of for online mba programs. Reverse logistics is a component of the supply chain that has been often overlooked, even by large ecommerce retailers. Reverse logistics gets its name because it is the opposite of forward logistics. For a typical product this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. Essentially, reverse logistics is how companies recoup value from returned goods or items that are no. Logistics definition of logistics by merriamwebster.
Traditionally, reverse logistics has been viewed primarily as the process of recycling products. 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. Growing green concerns and advancement of green supply chain management. The process ofplanning,implementing,and controlling the efficient,cost effective flow of raw. 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. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess. The theoretical part was based on reverse logistics and mining waste related literature and. It can include returns from ecommerce and retail, as well as components for refurbishing and remanufacturing. Better manage and reintegrate your returned materials for streamlined practices, reduced waste, and continuing profits from your existing products.
Aug 22, 2017 a definition of reverse logistics with examples. The 7 deadly sins of reverse logistics material handling. Today, definitions vary depending on what company or segment of industry is attempting to define it. The term reverse logistics should be reserved for the flow of products and materials going the wrong way on a oneway street. Jun 10, 2019 reverse logistics is the opposite of the standard supply chain. We start by giving an understanding framework of reverse logistics. Logistics definition is the aspect of military science dealing with the procurement, maintenance, and transportation of military materiel, facilities, and personnel. Keywords closedloop supply chain, reverse logistics. Reverse logistics includes all of the activities that are mentioned in the definition above. 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.
Typically, it means taking goods from the manufacturing location, warehouse or distribution center to a retail outlet or directly to the consumer. Reverse logistics meaning in the cambridge english dictionary. This article will identify the reverse logistics exception and describe how it can be used to reduce a shippers responsibilities under the hmr. Reverse logistics is a broad area and, in this particular study. Return management systems, and by the same token, reverse logistics requirements, vary based on product and business model attributes. Origins and definition the word of logistics originates from the ancient greek logos, which means ratio, word, calculation, reason, speech, oration. Next, we argue that metaheuristics can play an important role in solving complex logistics problems derived from the important need to.
In this whitepaper, weve defined the reverse supply chain process, the steps involved and how it can be used as a. The difference is that reverse logistics encompasses all of these activities as they operate in reverse. 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. Reverse logistics is defined as the processes of receiving returned components or products for the purpose of recapturing value or proper disposal. Reverse logistics is the process in which products e. Reverse logistics is a type of inbound freight that most companies are losing money on. Research says it is around 4% of the cost of logistics, based on a survey sample. Reverse logistics is the process of moving products and materials at least one step back in the supply chain. Sc1x supply chain and logistics fundamentals lesson. The transportation of hazardous materials as reverse logistics. Logistics is the integrated management of all the activities required to move products through the supply chain. 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.
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. Reverse logistics is the process of planning, implementing and controlling the efficient, costeffective flow of raw materials, inprocess inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing or creating value or for proper disposal. Logistic definition, operations, and types of logistics. 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. The term reverse logistics was first used in the 1990s and then refined through. Most research focuses only on a small area of reverse logistics network, such as network design, production planning or environmental issues. A good reverse logistics process can bring great value to your bottom line. Reverse logistics processes can increase your efficiency, retain customers, and foster growth for your business.
The branch of science having to do with procuring, maintaining and transporting material, personnel and facilities. Reverse logistics maturity model ellen macarthur foundation. Mar 27, 20 reverse logistics is a poorlyunderstood concept in business, and what is even more poorly understood is the role that technology has in facilitating this important process. The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess inventory, finished goods and related information from the point of origin to. Its most often associated with returns and recalls, but its also used for recycling programs, asset recovery and disposal. Reverse logistics is a broader concept for overall supply chain optimization, which aims to support closedloop supply chains by the improvement of such activities as product design, supply chain design, and product recovery. 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. Make sense of reverse logistics definition and examples. Logistics in general has been estimated to take up about 10. Sep 12, 2019 definition of reverse logistics reverse logistics consists of all activities which are performed after the sale of a product. 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 company has varied disposal options to choose once a product has been returned.
The company looks primarily to return it to the supplier for a full refund. Reverse logistics maturity model rlmm homing in on reverse logistics needs and key success drivers there is no one way when it comes to going and staying circular. Reverse logistics and the role of fourth party logistics provider. Process of sending returned products back up supply chain for value recovery. 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. Retailers see reverse logistics as a way to get product that has been returned. Reverse logistics is a broad concept, encompassing many activities within, and outside of, logistics.
Reverse logistics a wellplanned, customized reverse logistics strategy will reduce storage and distribution costs, improve brand reputation, create more sustainable business practices, and satisfy customer demands. The reverse logistics process in the supply chain and. Even with reverse supply chains, forward thinking pays big dividends. It is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or. Pdf an examination of reverse logistics practices myles. 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. It has been defined as the term most often used to refer to the role of logistics in product returns, source reduction, recycling, material substitution, reuse of material, waste disposal, and refurbishing, repair and remanufacturing. 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. Display detailed reversing progressreversing result4.
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