The development of reverse logistics for manufactured products is developing in direct proportion to the rapid advances in technology and the subsequent fall in prices of the products as new and improved products in the supply chain at a faster pace. With such thin margins, and so much competition, mismanagement of the supply chain be a killer. To capture these organizations with the infrastructure and compare the composite value of componentscosts with real-time analysis and intelligent arrangement based on changes in the rehabilitation, re-sale value, replacement parts, repair and overall demand will not only be profitable, but such flexibility and scalability will enable them to outmaneuver and eliminate competition.
This is a case of modern Darwinism. It is survival of the fittest. It requires the co-integration in supply chain logistics, or appear on the list of endangered species. EvenThe powerful predator, the Tyrannosaurus Rex was threatened with extinction by the constant progress of the development is doomed to failure. Today, technology drives evolution at an amazing pace. The ability to migrate to grasp, to integrate and facilitate the intelligent analysis of data is comparable with the discovery of fire. This is what the companies vertically from those who are stuck in the tar pits of the slow reaction can go to separate.
The first days of reverse logistics have been measured by convenienceCustomers and accommodation. The focus was on the front end of the return process will be the opportunity for consumers in a position to be unwanted or defective merchandise back. The ability to facilitate a return of the consumer, was a courtesy, which made a compelling competitive advantage in retail. The companies that are not the support of consumers found themselves at a strategic disadvantage to those who did were, and were eventually forced to adopt the same convenience of consumers, or lose customersfor competition.
It did not take long for retailers to seek the same concessions from manufacturers and distribution channels. Stock rotation to a normal state of the economy and processes for returning the defective product has been common practice. Although it is now accepted as self-evident, it is not always so. Even today, there are cultural differences to consumer is, especially for product that is not defective and back, because the'customer remorse'.
As the cost of Reverse Logistics continued to increase, and as the methods of transportation became more sophisticated, manufacturers and distributors began to look for alternatives in transportation for savings. Planning and consolidating freight for return products was identified as a way to reduce expenses related to fuel and labor. This also led to detailed analysis of transportation options, like truck, air and railway. In Supply Chain
The next step in the evolution of reverse logistics has been the experimentation and cost comparison between multiple local hubs and single, consolidated revenue centers. The simple analysis for savings compared with the cost of warehouse space and manpower, with the amount of freight and transportation fees for the processing of the rear end of the supply chain.Other factors also played an important role in financial analysis, including volume, material and inventory control.
Since the cost of Reverse Logistics continued to rise, the importance of returning the goods restored to the market was also higher. Organizations began to financial importance for the devaluation of the product for each day lost its significance, transport, handling, processing or storage. As the technology and enhanced features, price and demandremoved for aging product, such as the ability to recoup costs from returns. Speed return to the market could be measured in resale value.
The next step of the reverse logistics development, there was an awakening and the realization that Reverse Logistics is the only part of the entire back-end services solution. Consolidation means more than just the consolidation has, it means the consolidation of activities in connection with the back-end operations. Manufacturers began toConsolidation of parts and materials in the same hall as the returned goods, the discovery that it is cheaper to move parts and packaging materials through a corridor, as beyond the state borders. Parts used to return renovations were housed in the same building. Under this concept a step further, manufacturers began depot repair operations within the same facility to consolidate the recovery of parts, labor, warehousing and material to maximize. This activity oftennecessary coordination between the various management and operational before groups within large organizations. The combined efforts of reducing costs for all participating departments and groups within organizations.
The next big step in the evolution of reverse logistics is working with partners and external resources. There is a greater awakening and realization of integration with the entire supply chain by using data exchange. It begins withan understanding of the value of the components that produced a finished product that includes the Bill of Materials (BOM). The BOM is also procure from manufacturers for the prognosis and an inventory of spare parts used for repairs to administer. Often, the cumulative sum of the individual components of the cost of the original retail product. Furthermore, due to the decrease in price to the cost of some products for repair at the cost of replacing the entire system. Manufacturer must be renovated to make quick decisions about the financial return on investment for returned products, repair or replace any defective product warranty, and the potential resale value for refurbished products back into the market. Manufacturers must also weigh the potential costs for the procurement of inventory, if spare parts to support service, warranty and guarantee of rules. In order to be truly effective, the manufacturer shall make these decisions before the returned goods to the inverse> Supply chain, even after it in her.
Manufacturers have the opportunity to collect data on the activities that demand. Employees to include demand planning failure rate or rate of repair, require spare parts. Right at the front end can yield potential repair trends and tendencies are identified by the customers technical support or customer service calls. Quality analysis of returns and defective products can also be used to identify requirements forSpare parts planning. Resale value trends for refurbished products, and seasonal sales cycles can be used to predict demand and resale value for refurbished products, and if the product cost to be renovated or repaired. In some cases, the parts can actually be sold for more greater extent than the entire product. At least parts of return products can be harvested, mix, and repair of other defective return products comply with avoidance of expensive spare parts, ifapplicable. All these factors contribute to the planning of the demand for a refurbished product or its components.
Once you know the demand and resale value for parts and whole units, then it's only a matter of maintaining an intelligent design engine that uses the input to analyze the Bill of Materials for returned products. Before the product in the Reverse Logistics Supply Chain, an immediate and intelligent decision on theValue and intended disposition of the whole unit or its components. In some cases the product will be scheduled for de-feed configuration, remedial action or to develop a spare parts for warranty repairs. In other cases, the units for the rehabilitation and resale can be accelerated. Some products may be scheduled to be scrapped for environmentally friendly materials. Size and perhaps even de-configuration retail site to support local customer requirements and thus avoid the transportation of goodswhole. Whatever may be the result, the decision before the product will be in the reverse logistics supply chain cycle, as long as the intelligent engine with continuously updated and accurate information. The new task and the new solution is knowing what you have sold, who will return it and what it really is worth before she was alone.
It is hard to believe that there are still companies millions of dollars a year to investthe instruments of procurement and inventory management of spare parts forecasting, without accurate forecasting and managing the largest single source of added value components, the results of the return merchandise. There are still companies who struggle for freight savings alone through negotiation or consolidation to achieve without avoiding the achievement of a balanced approach to freight transport, localization and intelligent de configuration available. In the competitive landscape of the rapid development of technology,Mass production and eroding profit margins, managing the total supply chain and the interconnection of components is important to reduce costs and to financial survival. To ignore this aspect of reverse logistics can be not only expensive, it can be fatal for a company.
For consumer electronics and computer products, the reverse logistics are other rules for the handling of compliance and RoHS regulations, such as complicated controls electrical and electronic equipment,materials for lead and mercury, to name a few. In recognition of these components is absolutely necessary to forward the proper management of the intelligent engine which can be the disposition of the return promptly after the announcement that returns the product type cycle. Proper management is rewarded not only financially, but in the case of hazardous substances, it is the law.
In operation, in order to be competitive, to be the first to the services that would otherwise share yourout of business. If you do, you are personally your political rivals out of business, or at least they have working for you. Gathering the data that relates to customer call centers, extended warranty services, spare parts, resale value, parts procurement costs and the threat is often requires extensive cooperation, integration and data exchange. To be successful, it is often necessary to use partners with several organizations and experts, best practices in a collaborativeEnvironment. The companies integrate, collaborate, and optimize return date will be the competitive advantages of improved margins and enjoy precision management. The organizations that will not participate as fabulous fossils remain in my memory.
Words of Wisdom
"The Supply Chain Logistics, you are either a drive of the truck, which a pump the gas, to pay for one or the other two."
- John Mehrmann
"The old ways aredead. And you need people around you who concur.
That means hanging out more with the creative people, the freaks, the real visionaries, than you're already doing. Thinking more about what their needs are, and responding accordingly. Avoid the dullards; avoid the folk who play it safe. They can't help you any more. Their stability model no longer offers that much stability. They are extinct, they are extinction."
- Hugh Macleod
"In service, to be competitive is to be the first to to deliver the service, otherwise you would be out of business. If you do this, you are your competitors out of business, or at least they have place for you to work. "
- John Mehrmann
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