1. REVERSE LOGISTICDANIELA MEJIA CONDEJUANITA SUAREZ CAYPA

2. REVERSE LOGISTICIs the process of moving goods from the point of consumption to the point of origin forthe purpose of recapturing value or proper disposal. 3. Take Supply Chain Enterprise ReturnManagementhttps://www.youtube.com/watch?v=MEkXfxleLBk 4. Reverse logistics also includes processing returnedmerchandise due to:DamageObsoleteEquipmentSeasonalInventoryRecyclingProgramsExcessInventoryRestock Recalls Salvage 5. Return Reasons when the product is not what is expected when the product does not arrive in a defined periodCustomer NOT Satisfied The consumer assumes that the product is damagedbut really that was installed improperly due to lack ofinstructions.Installation or UsageProblems when the product does not work properly when the product has physical damage - when the product is repaired by warrantyWarranty Claims 6. Return ReasonsIncomplete ordersMisguided amountsPremature delivery and duplicateFaulty Order ProcessingExcessive quantities of productsNew orders at the end of trimester Retail OverstockProduct life finishedNew product trendsOld products are eliminatedEnd of product life cycleor product replacement Installation by the manufacturerStandards of product safetyCorrective measuresManufacture recallprograms 7. Other ComplicationsThe Green Factor E-Commerce Shorter Product Life Cycles Complex andEnvironmentallaws.50% of thegoods soldare returned.Obsolencehigh, productvalue fall 12%per month.underdeveloped areaReverse logisticnot adds valueto the productand generatesfinancialpressure. 8. REVERSE LOGISTIC AND RECYCLINGhttps://https://www.youtube.com/watch?v=D4CuaN79XZY 9. Attacking the returns challenge(key steps in the process of return)LocalScreeningCollection Sorting Disposition Is done at the pointof collection of thereturned products. To avoidunnecessary costs oftransport are due topick up the productsat the point wherethey were delivered.(scanner) Example: Nintendo There are manydifferent ways tocollect the productsthat are destined toenter the reversesupply chain The complexity of theprocess and themultiple partiesinvolved generatesdifferents systems toreturns Example: Ford Some large retailershave been usingcentralized returncenters (CRCsdedicated to handletheir entire reverselogisticsoperations.When acompany use thathave an optimizationarise from a wholerange of areas Example: GMSell as-itRepair orReuseDispose 10. Create Profit CentersSome companiescreated profitcenters around theirreturns processFocuses theorganization onmaximizing thepricesThey will get for thegoods by exploringinnovative waysTo sell their returnedgoods.A key problem inselling returnedgoods is price settingUsually experts unsales and marketingset prices for newproductsReturned goodsprices are frequentlyDetermined throughnegotiation 11. E-AuctionTo obtain thehighest prices forreturned itemsSome serviceproviders have setup capabilitiesTo coordinatereturns and helpmanufacturersrecoupSome of their costby resellingreturned goodson internetauction sites 12. REVERSE LOGISTIC S ECOSYSTEMhttps://www.youtube.com/watch?v=9w_OmYDxvAA 13. Change to Leading Practice Organizational StructureSEGMENTING THE SUPPLY CHAINInto separate forward and reverseorganizations can improve efficiencyOUTSOURCINGIs another way of effectively organizingthe returns processEXAMPLESCompaq, Thomson, Target and 3M 14. Implement State-of-the-art Information TechnologyCollecting the right information to allocate and accuratelycalculate debits and credits is crucial for manufacturers anddistributorsWhile integration with back office functions remains an issue, thewidespread use of internet technology has substantially improvedthe way different supply chain partners can communicate witheach other.New information technologies can be used to analyse returnreasons and provide valuable information to prevent futurereturns. 15. Analyse To Prevent ReturnsA return goodsmanagement systemprovides a window intomanufacturers faultsCompanies need tolook beyond theprocessing of returns toreduce their reversesupply chain cost.A good reverse logisticssystem includes properdata collection andeffective reporting.To understand aconsumer,s reason forreturning a good,companies must collectstructured andconsistent dataconcerning the reasonfor the return and theproduct and itscondition. 16. Outsource The Returns ProcessOutsourcing of the returns process is also ocurring on amore frequent basis and seems to be an alternative toavoid high investments in reverse logistics e-capabilities.Example: Manufacturers such as Compaq, Dell, Ciscoand 3M and retaillers such as Sears have outsourced thehandling of the reverse flow of godos.These outsource suppliers have become specialist inmanaging the reverse flow of godos and can achieveeconomies of scale. 17. Successful Reverse Logistics ProjectsExample of complete reverselogistic: Estee LauderInvestment of 1.3 million to build itspropietary reverse logistics systemof scanners, business intelligencetolos linked to an Oracle databaseThe company has apparentlyrecovered its investment in the firstyear through reducing labor andother costs.When companies decide toembark on a reverse logisticsProject they can leverageknowledge, tolos and processesfrom other successful projectsSuch as Estee Lauder s, to preventthem form reinventing the Wheel.Can be made to:-Reduce Cost-Improve customer service and-Increase revenues 18. SOURCES Google Images YouTube Videos Schatteman, O. (n.n) Reverse Logistic lecture.