Impact of Reverse Logistics on Supply Chain Performance Essay

Impact of Reverse Logistics on Supply Chain Performance - Essay Example Hence, the importance of reverse logistics is becoming an integral point of consideration in corporate sector. Mastering the process of reverse logistics can have a direct impact on company’s ROI, operating cost and the level of customer service needed to compete in today’s economy. Competitive prices, product quality, on time deliveries, consistent order cycle times and low damage rates have always been important and will stay to be so in the future as well. As a procedure, Reverse Logistics can be referred to as those activities, which are related to getting goods (packaging, materials, products) back from the point of use so that they can be resold, refurbished, disposed or reused properly. Activities that are involved in the process of reverse logistics include collecting goods, sorting them out, establishing logistic providers’ network to return and transport good, remanufacturing or refurbishment of selected goods, reuse or resale and finally disposing of. For a practitioner, the choice can be determined by the most lucrative alternative. Reconditioning – is an activity in which a product is repaired and cleaned to bring it to a new state. Refurbishing – involved in overhauling of the product, refurbishing is similar to reconditioning. Remanufacturing – it requires more extensive work, in often cases, a product is completely disassembled and then prepared all over again Resell – it refers to selling the product again as a new product or to a new market Recycle – also called as asset recovery, in recycling the product is reduced to basic elements which can be used again The core purpose of reverse logistics is to plan and process effectively in order to reverse the supply chain. By doing so, firms can properly determine and allocate returned products for disposition. Disposition can be referred to as that area which offers several opportunities of supplementary revenue to business. Reverse logistics i s not about just counting defective or returned goods from customers. The purpose of reverse logistics include repairs processing, product recall protocols, return policy administration, parts management, product repackaging, maximizing value of liquidation, product disposition management, recycling and much more. Being inattentive to returned or defective goods can be harmful to company not only in terms of losing revenues, but also in terms of losing regular customers. Even the most loyal customers will begin to escape if they find continued offering of defective products. In today’s intense competition, it can become difficult for a firm to survive if it does not consider these minor points and does not choose to alter its supply chain activities as per the demand of the situation. With the passage of time, alterations and modifications are required in each step of supply chain. Failing to do so can cause firms huge loss of time and money. Impact of Reverse Logistic on Sup ply Chain Management The growth of reverse logistics in assembled products is increasing in direct proportion to the advancements in technology. It is also directly propotional to the subsequent price erosion