Reverse Logistics and its role in supply chain solutions

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Logistics management is now an important area, particularly with the introduction of online shopping. logistics management solutions provide the necessary assistance in the rationalization of infrastructure and operational discipline in the whole management process. And the reverse logistics each day is an important part of logistics management that provides results in real-world experience to add.

Supply Chain Solutions

For a successful deliveryChain Solutions service, you must align over long distances and complex analysis strategies with business objectives to deliver value. And every good logistic service provider takes care of the profits of the customer through the flawless planning the next steps of the assessment, design, implementation and management and end-to-end supply chain solutions to generate. This also helps to address the immediate needs of the customer through faster implementation, thus providing the valuefor all investments.

Reverse Logistics

As already mentioned, the Reverse Logistics, in fact, an important part of supply chain management has become. But, as the name suggests, moves in reverse order of the chain. This process takes place after the post-sale. It actually moves the customer to the distributor or manufacturer, and not vice versa. This includes activities such as care and rehabilitation. Reverse Logistics aid in the managementreturn effect.

The services available on-line the best supply chain management:

The advent of the World Wide Web in our lives, life is much easier. In fact, one can only benefit from products to services online. Today with globalization, it is also a possible candidate to have good logistics services with the best times. So what are you waiting for? Log in online search is easy, and to ensure that all of your logistics solutions, and vice versalogistics requirements are supported by a competent and technology-based, full logistics management provider acquired.

Reverse Logistics - in March in the future!

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One major success of any company is the ability to cultivate productive returning products. Returns are a fact of life for many companies and on the surface it seems that most companies could handle returns in a profitable manner. Unfortunately, as time marches forward, and businesses to ramp up its focus on sales, production and shipments, the sheer volume of returns and disposal can be overwhelming, making it impossible to treatefficiently. The use of a quality, cost-efficiency of processes, reduce costs and add directly to a U.S. dollar bottom-line asset recovery company of inactivity. The processing of returns can only with great effort and resources, drainage, as it appears at first sight. Processing provides resources diverts primary objective of any companies that sell their products. As we all know, the focus of any business is based primarily on marketing, sales and customer satisfaction.Cowgirl In this sense, with valuable resources to process, a large drain line profits.

The nature of returns is that they are generally associated with the original packaging is damaged or does not mix with other things, in all sizes and shapes. From a storage and distribution of view this makes the treatment more intense performance of the work input of new products, sorted, packed, labeled and transported in a consistent manner. Often did not return taginformation or SKU UPC, which creates even more pain to the operations manual for the search for identification. Are all these obstacles, many companies are just "find a place in the field" to set it to collect dust until they can be addressed.

Businesses are accumulating large quantities of products to be sold in a variety of forms. These products may be in the millions to pay the costs constitute a business. On the other hand, more and more resourcesLimitations find their way into all areas of distribution and storage, non-value added processes that work is dollars, the non-distribution related to being placed in use shelf. Even if the surplus labor is available and can be spent for such activities as sales, the focus so heavily on the productivity flex budget, that the work should not dollars are used for returns processing. Of course there's the fact that the processing of returns, many companies can costup to 3 times the original cost of the original consignment out that outsourcing is an affordable choice. outsourcing providers are an ideal way to process declarations, because they have found a perfect fit for their existing services. Data are not only experts in a variety of outsourcing services, but have a general philosophy of flexibility and flexibility is an important component in a position to deal effectively return to nature. Why flexibility isthe need of the moment for most of the outsourcing companies, the process is not as exception handling and therefore the costs are lower than the inner circle

The outsourcing of processing of the reverse logistics can a society to resolve these stagnant U.S. dollars in order to concentrate on cash for a company, while not drawing on their work budgeted dollars. Managers find it much more plausible for the budget and the use of non-productivity of dollars from its operating budgetfunding for income processing companies in outsourcing from the outside, then his work of dollars and risk to take advantage of the productivity targets. be packed with an outsourcing company to return to liquidate or otherwise dispose of, free, the company makes money in the cash infusion to be more productive or the purchase of new products can be used. An important ingredient in the decision to outsource companies are realizing that it is a fair amount of returned merchandisein fact, has no defects are quickly identified and, when placed in the normal cycle product to be sold at full value. The capacity for quick selection, testing and detection of errors, you must generally integrated into the outsourcing companies in daily operations. If your company will increase the need, and they focus on product return, is an outsourcing company qualified to discuss the possibilities. You may be surprised to good results.

Integrating Reverse Logistics into Supply Chain

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Define logistics

AboutRetail.net on the glossary of logistics is defined as "the planning and execution of product marketing." When buying milk, bread or anything these days is completely out of your IKEA, the journey from the field of business planned and executed, unless, of course, your business is successful, a cow and a mill to your bread garden.

Logistics is a word that has changed from one definition to another, dependingon time and according to demand. It can be used in the calculation (the original meaning) and military planning. In fact, used in a variety of settings. Logistics word has a wide arc, there is no danger, it means nothing. In recent years there has been through that before the distribution sector is known to have been adopted.

The distribution is a simple thing to throw some 'goods on a ship, truck, or aircraft at point A to point and throw them outB. ..... oh, plus the little thing from A to B in a word, the logistics, including distribution, but also takes into account the fact that the vehicle is ready for service, the driver (or captain needs) is to be available and with sufficient hours of his shift, the goods are ready to be collected, the trip was planned, including stops along the way, the receiver is ready to receive the goods ... and
There are many other parts of the logistics puzzle. The word for Logisticsthe bill very well. All these definitions, it has collected over the years, not at all suited to the variety of tasks and the attributes of its multi-task performers (some say "logistics"), which all come under the banner of logistics.

The need to reverse the goods

industrialized economies have their logistics expertise to the point where large quantities of goods can be effectively removed from many places, moved to other places, manyStop-off points, all recorded and counted. Like a well oiled machine. A well-oiled machine, with no reverse gear, that is. The fat sand in the gears of this machine is the need to move things from B to A. Many large logistics set up in our movements, but bad in reverse and reverse logistics, as is generally known. It could be argued that the most challenging logistics front, the more embarrassing the Reverse Logistics.

There are many reasons for this.One of the main reasons is that the systems without paper in front of logistics, in which the products are scanned as they were built to exceed a threshold. The problem is that some systems are not programmed to accept the products acquired in reverse order. Reverse transactions historically have been rare (the odd game back, maybe), old-fashioned pen and paper was used to house them. Another reason is that once a vehicle is empty, you can not return to its base. Send back a box is simply a matter ofthe system runs in reverse order. In a simple one-to-one distribution system, this would be entirely possible. The vehicle drives A, B arrives, download and upload boxes for the trip back to A. Increasingly, this simple operation is not appropriate in modern logistics. In a one-to-many vehicle can end up on the wrong side of the country (or world). In another common scenario, the vehicle can continue to pick up another load and leaves the last port of callempty.

Why is there an increase in reverse logistics

Most organizations can handle a delicate thread of documents and some new boxes come in a passing vehicle, then what's the problem? Well, this is the problem that the movement of goods to travel back along the supply chain is no longer limited to a few unwanted versa. The following list is the new tariffs for goods to send back:

- Goods for the recycling

- Reusable packaging

- Goodsbeing disposed

I take these areas in turn:

Have been recycled:

We are the global pressure
to improve on all of us to recycle our efforts for the goods. This pressure is uneven, put a burden on businesses (and local), the set of proportion to the burden on the individual. If this is right or wrong is, in most countries today, the reality that must be addressed. vehicles increasingly take goods back to the full for the goods orpartially recycled. This increase is expected to accelerate throughout the world in the coming years.

reusable packaging:

Environmental protection has also led to a demand for packing a lot more than we did in past re-use. Old fashioned cardboard boxes that are always dumped after a trip is no longer acceptable in a growing number of companies. This is not only an environmental imperative to respect the legal and moral pressure, it is also an economic necessity:very often the re-packaging saves money.

Disposal

In some countries there are new laws - or soon will be - forcing the company to recall certain products, if customers need to dispose of them. This may include appliances and products with hazardous or potentially hazardous to be.

The use of third parties, such as a stopgap
Overall, the reverse logistics channels are less crowded and more ways of doing things need to be reviewed. Currently, some largeto forward the company with the smooth logistics systems, are complex but dodging the question entirely, and employs third parties to deal with returns. So you can continue as if
nothing has changed to not having to worry about filling the outward and return with these products. With third parties is OK as a short-term palliative. It allows a breathing space, and isolated the add-on cost of reverse logistics. Through things in this way, companies can integrate with their reverse logistics in Septembercurrent logistics lessons learned forward through their third-party partners. Third parties are well to the movement of goods, the management specialist and is in particular a system of products that require controlled disposal and special license, but in the long term, it makes more sense economically to take a holistic approach to trade, regardless of which direction where is traveling. The reason for this is that the same cars and staff can move inThe goods in both directions. It 's just that the systems must be updated. If not, then you end up with logistics, where the tail wags the dog. Logistics is built around movement. The product should not be moved to the dictates of the system. This is not logical and can not be illogical logistics, right?

Take goods to be disposed of. Most goods that are destined for disposal will contain the items that have value to sell orreused as components in new products. If a company such goods in the first place would certainly be delivered economically viable to recover the components of the items for disposal, rather than see it sold cheaply. Here the use of third party is made available disbursement could eventually be seen as an unnecessary overhead. If the goods originate in a factory and need to work to pick up the pieces recovered again because there is a need for a return of third parties by customers, the stripThe parties and then send the parts to the factory. Sure, the production environment in a factory is the perfect place to do all the work. those who can make the goods the best judge of what the parties can and can not be reused.

Reverse Logistics is a growth of almost every aspect in the supply chain. Those who embrace this fact and build reverse flows in their systems, the winners will be.

A Reverse Logistics Story

A cartoon of one product being returned using ECN ERL - Enterprise Reverse Logistics

Reverse Logistics in Supply Chain Management

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