Use Reverse Logistics to Gain a Sustainable Competitive Advantage

Chapter one

Importance of reverse logistics

Definition of Reverse logistics

Reverse logistics can be defined as the movement of product or material back up supply chain . These products can either be new ones or already used ones and can be returned from the consumer , inventory that is over stocked or merchandise that is outdated and then redistributing them using disposition management rules that will result in maximized value at the end of the items ' original useful life . One of the reasons that have made organizations to resort to reverse logistics has

been for the environmental concern of the global world . But since then , a lot has been discovered on how organization could maximize their profit using reverse logistics . There is a lot to gain when it comes to a better customer service and this is one of the values that comes with reverse logistics . Another value that also comes with reverse logistics is that it reduces the cost and recycles time . The business world is becoming a very competitive place and organizations seek out better ways of having more advantage over other organization and that is why there have resorted to modern methods of reverse logistic processes . Apart from the primary objective of enhancing customer services and reducing recycling cost , the secondary objective is to create an internal efficiency when it comes to the processing of the returned goods . Models have been developed and examined in other to compare current processes through computer stimulations for different scenarios of operation of a new proposed reverse logistics process . There have also been modified process for checking better ways of improving services been rendered to customers . In other words , we can define reverse logistics as logistics activities and management skills applied for the reduction , management and disposing of hazardous waste from packaging and the improvement of organizational status through the reduction of cost and cycling time

1 .1 .1 The growing and pervasive nature of a reverse logistics

The real reason why organizations decided to go into reverse logistic process was because of environmentalism . But organizations have also decided to embark on reverse logistics process that does not have any thing relating it to environmental reasons . Some of those actions are improving customer services , the reduction of cost and also the reduction of cycle time . So while the open reason of reverse logistics is to maintain a healthy environment , other reasons are steps that will put organizations at a better advantage

1 .2 Connection between reverse logistics and supply chain

First we would define supply chain as the system of organization people , technology or resources that deals with the movement of products or services from the suppliers to the consumers . Supply chain do not only deals with the processing of raw material into finished products than making it available to the consumers but in an advanced form of supply chain , it also deals with the returning of used products back to their manufacturers for recycling process

Supply chain first and foremost looks into...