Overall, regardless of market segment or size of the organization, the most widely acknowledged benefits derived from the use of reverse logistics services may generally be categorized in the following areas. Because reverse logistics involves the same steps and processes as traditional forward logistics customer service, transportation, inventory management, etc. Increased productservice revenues and profitability. There are many advantages of reverse logistics such as financial gains along with social and environmental benefits.
The case of the manchester royal infirmary pharmacy. Do you have a need for a solid reverse logistics process. Kulwiec explores related initiatives by coors brewing company and. Pdf some reasons to implement reverse logistics in companies. Top 3 benefits of a reverse logistics management program. The case of the manchester royal infirmary pharmacy article pdf available in supply chain management 55 december 2000 with 864 reads how we measure reads. In conventional systems of prospect logistics, the flow starts from the raw material provided by suppliers, then manufactured parts and components for assembly. What are the benefits and challenges in implementing a reverse logistics program in a supply chain. Pdf describes a research project carried out within the manchester royal infirmary mri to evaluate and improve the recycling and disposal. Reverse logistics is a broader concept for overall supply chain optimization, which aims to support closedloop supply chains by the improvement of such activities as product design, supply chain design, and product recovery.
By streamlining the way products move back through your supply chain, you can see benefits such as cost savings. An effective products return management program provides a chance for cost reduction and value recovery. Reverse logistics is a process where a manufacturer accepts previously shipped products from the point of consumption for possible recycling and recovery fortes, 2009. Issn 598546 does not stop with the delivery of goods to 226 the benefits of reverse logistics supply chain management. Putting one in place has several benefits for shippers. Describes a research project carried out within the manchester royal infirmary mri to evaluate and improve the recycling and disposal of pharmaceutical products. Setting up reverse logistics provides companies with the following advantages.
Specifically, the benefits of utilizing the expertise of a 3pl for reverse logistics process management produces greater controls over inspecting, recovering, testing and disposing of returned products. What are the benefits and challenges in implementing a. The nature of reverse logistics process management includes higher uncertainty and threats than forward logistics. Reuse of materials in manufacturing processes helps stave off the misuse of unprocessed raw materials and requires less power. Wellstructured and implemented reverse logistics process brings up benefits and advantages to companies, beyond environmental ones. The reverse logistics process is illustrated in figure 1. The benefits of reverse logistics semantic scholar. Schematic representation of the direct and reverse logistics processes. Ernst 2000, reverse logistics involves the return flow, considering either defective parts packages or products returned consumed that should go to a recycling.
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