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Reverse Logistics Challenges & Benefits Anand Subramaniam
[object Object],[object Object]
Highlights ,[object Object],[object Object],[object Object],[object Object]
Forward Vs. Reverse Logistics
Forward Vs. Reverse Logistics Inconsistent  Consistent  Inventory Management Unclear Clear Destination / Routing Complex Straightforward Contract Negotiation Damaged Uniform Product Packaging Many to One One to Many Distribution Point Complex Manageable  Product Life cycle  Unclear Transparent Process Visibility Inconsistent Uniform Product Quality Low  High  Cost Visibility Difficult Straightforward Forecasting Complex Straightforward Marketing  Less High Priority Speed Many factors Uniform Pricing Reverse  Forward  Factors Logistics
Return Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Role of Returns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reverse Logistics Vs. Closed Loop Supply Chain Systems
Extended Supply Chain & Reverse Logistics Regular Supply Chain Extended Supply Chain Develop Deliver Revenue Market Build Sell Develop Deliver Revenue Market Build Sell After    Sales Service Replenish RMA Replace Recover Repair Reverse Logistics
Reverse Logistics Process
Reverse Logistics Vs. Closed Loop ,[object Object],[object Object],[object Object],[object Object]
Close Loop Supply Chain Disposition Choices Reconditioning Recycle Refurbishing Remanufacturing Resell
Close Loop Supply Chain Close Loop  Customer CRM Help desk RMA call center Order tracking Inventory   Forecasting Warehousing Demand fulfillment Parts management Surplus inventory sales Inventory ownership model Services Upgrades Component  Re-Configuration Warranty Reclamation Continuous Cost Scaling Activity & Quality Reporting Metrics Receive & Triage Testing Return To Vendor  Warranty Validation Repair Product Forward-logistics Kitting  QA Inspection Pick Pack Ship Global Distribution
Reverse Logistics
Organisation Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact on Organisation Customer Asset Manage-ment Customer Service Finance Sales Transport Receipt  W/House  Repair ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business Drivers Internal External Operational Strategic Legislation ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Economic Benefits Customer Service Initiatives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Organisation Value  ,[object Object],[object Object],All of the above, + Corporate Social Responsibility CEO ,[object Object],Improve customer experience Quality ,[object Object],Build the brand Marketing ,[object Object],[object Object],Grow the business Sales ,[object Object],[object Object],Maximise profitability Finance How Reverse Logistics Can Help Key Objective Function
Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Management Elements  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Customer & Product - Elements Customer Touch Gate-keeping “ Severe Desk” Technical support Sale save Routing Product Touch Routing  Disposition  Gate-keeping Asset recovery Refurbishment Recycling
Reverse Logistics Steps incinerator recycling containers retailer consumer 1. Collecting 2. Selection & Sorting 3. Transport 4.  Disassembling & Crushing 5. Transport collecting point production Treatment centre
Reverse Logistics Activities ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recovery Processes & Value Reclaimed Landfill Disposal with  energy recovery Recycling Reuse Resource Reduction Resource Reduction Reuse Remanufacturing Recycling Disposal with  energy recovery Landfill
Recommendation - Reverse Logistics Educational Council
Recommendations Financial Management Avoidance Gate Keeping Reverse Cycle Times Information Systems Return Centres Asset Recovery Pricing Zero Returns Outsourcing RLEC Recommendation
RLEC Recommendation (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
RLEC Recommendation (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object]

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Reverse Logistics

  • 1. Reverse Logistics Challenges & Benefits Anand Subramaniam
  • 2.
  • 3.
  • 5. Forward Vs. Reverse Logistics Inconsistent Consistent Inventory Management Unclear Clear Destination / Routing Complex Straightforward Contract Negotiation Damaged Uniform Product Packaging Many to One One to Many Distribution Point Complex Manageable Product Life cycle Unclear Transparent Process Visibility Inconsistent Uniform Product Quality Low High Cost Visibility Difficult Straightforward Forecasting Complex Straightforward Marketing Less High Priority Speed Many factors Uniform Pricing Reverse Forward Factors Logistics
  • 6.
  • 7.
  • 8. Reverse Logistics Vs. Closed Loop Supply Chain Systems
  • 9. Extended Supply Chain & Reverse Logistics Regular Supply Chain Extended Supply Chain Develop Deliver Revenue Market Build Sell Develop Deliver Revenue Market Build Sell After Sales Service Replenish RMA Replace Recover Repair Reverse Logistics
  • 11.
  • 12. Close Loop Supply Chain Disposition Choices Reconditioning Recycle Refurbishing Remanufacturing Resell
  • 13. Close Loop Supply Chain Close Loop Customer CRM Help desk RMA call center Order tracking Inventory Forecasting Warehousing Demand fulfillment Parts management Surplus inventory sales Inventory ownership model Services Upgrades Component Re-Configuration Warranty Reclamation Continuous Cost Scaling Activity & Quality Reporting Metrics Receive & Triage Testing Return To Vendor Warranty Validation Repair Product Forward-logistics Kitting QA Inspection Pick Pack Ship Global Distribution
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. Customer & Product - Elements Customer Touch Gate-keeping “ Severe Desk” Technical support Sale save Routing Product Touch Routing Disposition Gate-keeping Asset recovery Refurbishment Recycling
  • 23. Reverse Logistics Steps incinerator recycling containers retailer consumer 1. Collecting 2. Selection & Sorting 3. Transport 4. Disassembling & Crushing 5. Transport collecting point production Treatment centre
  • 24.
  • 25. Recovery Processes & Value Reclaimed Landfill Disposal with energy recovery Recycling Reuse Resource Reduction Resource Reduction Reuse Remanufacturing Recycling Disposal with energy recovery Landfill
  • 26. Recommendation - Reverse Logistics Educational Council
  • 27. Recommendations Financial Management Avoidance Gate Keeping Reverse Cycle Times Information Systems Return Centres Asset Recovery Pricing Zero Returns Outsourcing RLEC Recommendation
  • 28.
  • 29.
  • 30.
  • 31.