This thesis is a consequence of the legion hours of talks, class seminars, assortment of classs, group and single undertakings in the field of production and logistics over the past two old ages at the Innovation, Design and Engineering Department at Malardalens Hogskola. This thesis gives me the chance to set together a survey on the construct of Reverse Logistics. It besides gives me the chance to demo my accomplishments as a Masters pupil, and showcase the accomplishments I have learnt over the past two old ages. This undertaking chiefly focuses on the construct of Reverse Logistics and what function it plays in the fabrication universe today.
The purpose of this undertaking is to understand the true definition of Reverse Logistics and its function in the fabrication industry. It besides focuses on larning different facets of the contrary logistics and how these facets affect the determinations made by fabrication houses. The survey besides tries to look at the environmental facets of contrary logistics.
The chief aims of this thesis can listed as below:
Understanding the definition of contrary logistics as given by assorted research workers and logistics experts.
Trying to place the chief stairss involved in the contrary logistics.
Identify how rearward logistics determinations affect the fabrication industry economically.
Identify how the fabrication houses ‘ determinations affect the environment.
The literature reappraisal in this paper gives a clear image about the construct of contrary logistics. The thesis makes an effort to cover the plants of assorted taking research workers and logistics experts every bit much as possible. Further the questionnaire besides has been formulated so as to acquire clear and good defined replies. Through the literature survey and interview and study conducted with logistics and supply concatenation forces at a few companies, this thesis tries to understand and analyse the construct of contrary logistics.
Rearward logistics is a reasonably new construct and non until late have research workers and logistics companies tried to concentrate on its effects on the managerial determinations. Besides in recent old ages client satisfaction has been considered a really of import facet in the growing of any company and focal point on bettering client satisfaction has increased greatly. Recently research workers have found that rearward logistics can play an of import function in bettering client satisfaction.
The chief focal point of this thesis would be to reply the undermentioned inquiries:
What is the definition of contrary logistics?
What are the chief stairss involved in contrary logistics?
What make companies make with the returned merchandises?
How make the returns affect the determinations made in fabrication houses?
How do environmental issues affect the contrary logistics determinations?
And so on…
Problem Boundary line
Reverse logistics has been found to play an of import function in about any fabrication house, irrespective of size, merchandise and geographical range of the house. The focal point ab initio was to carry on the study and/interviews in fabrication houses within Sweden concentrating on houses that industry FMCG and electronic goods. The ground for taking FMCG and electronic goods was because FMCGs are consumed more often which increases the importance of logistics determinations to present them to consumers. And the ground for taking electronic goods is because of the growing of electronic merchandises in the market over past two decennaries, and the frequence with which newer merchandises reach the market these yearss.
Unfortunately after waiting for about 45 yearss for the answers to the conducted study there was no response by even one of the 30 different fabrication houses in Sweden. After which a speedy determination was made to alter the mark group to the fabrication houses in India. And by the clip this determination was made there was really small clip for taking the companies and carry oning study and/or interviews. Somehow I managed to acquire 6 people from 5 different companies to react to the questionnaire. Besides some kind of an interview was conducted through telephone calls and chew the fating over the cyberspace to acquire a better apprehension of the responses given by them.
The methodological analysis followed to accomplish the set aims of this thesis is in two parts: study and interview.
A thorough literature survey on the subject of this paper: Rearward Logistics was conducted for a short period. Several articles were found on the subject over the cyberspace. After acquiring slightly of a just thought about rearward logistics, a preliminary set of inquiries were formulated for the study. Most of the inquiries were either taken straight or inspired by the questionnaire developed by Rogers and Tibben-Lembke ( 1998 ) , for their paper “ Going Backwards: Change by reversal Logistics Trends and Practices ” . And one might even state that to a great extent this thesis has been inspired by the above mentioned paper.
The questionnaire was formulated to accomplish the undermentioned aims of the thesis:
Understanding the degree of cognition of the respondents about the construct of contrary logistics
The economical and client satisfaction impact of returns in the past twelvemonth.
Return policies, if any.
Decisions made to keep the company environmental friendly.
As mentioned in the job boundary line subdivision it was hard to take the mark group for the study for this thesis. Initially the study was targeted at the fabrication houses in Sweden. But since even after waiting for about a month and a half there were no response from any of the 30 companies. This led to taking houses in India as the mark group.
The inquiries were formulated in such a manner that it would be easy to understand by the respondents and besides it would non take much clip to reply. Almost all the inquiries in the study are nonsubjective type, and all the respondents have to make was take from the options. Since the mark group had to be changed really tardily in the thesis, this led to a short period for roll uping responses from the companies. But fortuitously, the responses were collected rapidly with the aid of a few friends in India. In about one hebdomad since the determination to alter the mark group about 18 companies were contacted by me and my friends over the telephone and through electronic mail. And in approximately 10 yearss 6 responses were collected from 5 companies. Most of the respondents had filled the study inquiries wholly.
After having the responses to the study for this thesis, interviews were conducted with the respondents to better understand their responses and besides to acquire a better thought of their apprehension of the construct of contrary logistics. The interviews more like treatments were conducted with the respondents over the phone and through on-line confabs. These treatments were chiefly along the lines of the study inquiries, since some of them had failed to reply the study wholly. Further the intent of this thesis was explained to the respondents in brief, so as to give them an thought of the aims and ends of the thesis. This led to open up the treatment, and give the respondents an chance to throw visible radiation on their ideas on supply concatenation and contrary logistics. Therefore the consequences and analysis subdivisions are based on both the study and interviews or treatments conducted with the six respondents.
In this subdivision of the paper we will seek to sum up the assorted definitions of the construct of contrary logistics as given by assorted companies, logistics experts and research workers. We will seek to specify the primary stairss involved in the contrary logistics procedure. This subdivision will besides cover the function of contrary logistics and how developing a contrary logistics theoretical account for a specific merchandise or group of merchandises will impact the determinations taken by the companies. We will besides sum up how different contrary logistics theoretical accounts affect the environmental liability of these companies. Finally we will seek to give an thought of the fiscal benefits and/or drawbacks involved in the contrary logistics procedure.
Specifying REVERSE LOGISTICS
Reverse logistics, what is it? It sounds interesting, does n’t it? In simplest words it is the direction of the way of the merchandises from its terminal users back to the makers. Below are a few ways of specifying the construct of rearward logistics:
In the paper “ Going Backwards: Change by reversal Logistics Trends and Practices ” , August 1998, Dale S. Rogers and Ronald S. Tibben-Lemke use the definition for Logistics given by The Council of Logistics Management to specify Reverse Logistics. The definition for Logistics given by The Council of Logistics Management is:
“ the procedure of planning, implementing, and commanding the efficient, cost effectual flow of natural stuffs, in-process stock list, finished goods and related information from the point of beginning to the point of ingestion for the intent of conforming to client demands. ”
Therefore, contrary logistics harmonizing to Rogers and Tibben-Lembke is:
“ the procedure of planning, implementing, and commanding the efficient, cost effectual flow of natural stuffs, in-process stock list, finished goods and related information from the point of ingestion to the point of beginning for the intent of recapturing value or proper disposal. ”
Rogers and Tibben-Lembke go on to state that remanufacturing and renovating besides may be included in the definition of contrary logistics. Harmonizing to them change by reversal logistics besides includes processing returned ware due to damage, seasonal stock list, restock, salvage, recalls, and extra stock list. It besides includes recycling plans, risky stuff plans, disused equipment temperament, and plus recovery.
In his paper “ Development and Implementation of Reverse Logistics Programs ” , 1998, James R. Stock defines contrary logistics as,
“ the term most frequently used to mention to the function of logistics in merchandise returns, beginning decrease, recycling, stuffs permutation, reuse of stuffs, waste disposal, and refurbishing, fix and remanufacturing. ”
Stock ( 1998 ) says merchandise returns, merchandise callbacks, end-of-lease equipment, old/obsolete points being replaced, boxing stuffs are among the many points that come back and which require contrary logistics processing.
The European Working Group on Reverse Logistics, REVLOG ( 1998 ) , defines contrary logistics as,
“ the procedure of planning, implementing and commanding backward flows of natural stuffs, in procedure stock list, packaging and finished goods, from a fabrication, distribution or usage point, to a point of recovery or point of proper disposal. ”
Ronald Kopicki in his book “ Reuse and recycling: contrary logistics chances ” , 1993, gives the definition of contrary logistics based upon the way of flow as “ Reverse Logistics is a wide term mentioning to the logistics direction and disposing of risky or non-hazardous waste from packaging and merchandises. It includes rearward distribution… which causes goods and information to flux in the opposite way of normal logistics activities. ”
Pohlen and Farris ( 1992 ) define Reverse Logistics in their article “ Rearward Logistics in Plastics Recycling ” as “ the motion of goods from a consumer towards a manufacturer in a channel of distribution. ”
DHL, a celebrated 3rd party logistics company uses the undermentioned definition for contrary logistics taken from the book “ Logistiksysteme: Betriebswirtschaftliche Grundlagen ” , by Hans-Chritian Pfohl, 2004: “ Reverse logistics can be defined as the application of logistics constructs to residues in order to make an economically and environmentally efficient residue streamby utilizing all activities of spatiotemporal transmutation, including alterations in sums and types. ”
Fundamentalss of REVERSE LOGISTICS
Fleischmann and Dekker ( 2004 ) give the basicss of Reverse Logistics by analysing the subject from four point of views:
Why are things returned? and why do companies acquire involved in contrary logistics?
How Rearward Logistics plants in pattern?
What is being returned?
Who is put to deathing rearward logistics activities?
Why make companies acquire involved in contrary logistics activities?
In general companies get involved in contrary logistics 1 ) because they can gain from it ; or/and 2 ) because they have to ; or/and 3 ) because they “ experience ” socially motivated to make it. Furthermore Fleischmann and Dekker categorise these three driving forces as:
Economicss ( direct and indirect )
Change by reversal logistics plans bring both direct and indirect additions.
Direct additions can be:
In the signifier of natural stuffs for new merchandises.
Some parts of the returned merchandise possibly recycled to fabricate new merchandises, therefore cut downing the fabrication cost.
Value added recovery.
Indirect additions can be:
Anticipating/impeding statute law
Improved customer/ provider dealingss