Chilli Recipe
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Reverse logistics is the process of moving products from their final destination back to the point of origin for recycling, remanufacturing, resale, or disposal (Bowersox, Closs, Cooper). In an ideal world, products would all have perfect quality and would not need to be returned. This is nearly impossible, so companies need to implement a plan for returned products. Huge cost savings can occur by implementing efficient reverse logistics systems. Reverse logistics not only saves money, but creates value by bringing materials back to be reused in the “forward” chain. Profit margins are significantly higher for remanufactured products than new products. (Krikke)
Customer service is a key aspect of reverse logistics. Equitable and timely response to product returns will increase satisfaction and loyalty. Communication is very important to keep customers happy and letting the customer know when you received the return and when you shipped the replacement product can help increase satisfaction, while losing customers due to a poor return process can be very costly (Murray).
Most of the physical work for fixing products is done at warehouses. Warehouses need to plan for product returns and not only focus on inbound and outbound deliveries. By having a barcode labels, companies will save resources and time by knowing the exact product returned and where problems exist. (Murray)
Repair and remanufacturing is an aspect of reverse logistics that holds opportunities for companies, customers and environment. When product is damaged or doesnt meet quality standards instead of disposing of returned items, companies only need a little money to repair and repackage them and can create revenue for the company. The value of the product often determines the desirability to extend its lifecycle.
On the other hand, refurbishment can also benefit customers. Refurbished products are less costly than new and have are similar in quality. Refurbished products command high demand because they allow customers access to like new products at lower prices. For the automotive industry remanufactured parts market was estimated to be more then $36 billion in 1999. In addition, refurbishment is good for environment. Disposal of electrical appliances has a devastating impact on our environment by taking up landfill space and wasting rare metals used in their construction. Additionally, these devices are full of toxic materials that