Reverse Logistics: Concepts, Systems, and Environmental Considerations, Study notes of Supply Management

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REVERSE LOGISTICS

What is it - definitions

“… the movement of goods from a consumertowards a producer in a channel of distribution.”(Pohlen & Farris)

“The process of planning, implementing andcontrolling flows of raw materials, in processinventory, and finished goods, from the point ofuse to a point recovery or point of proper disposal”

Reverse Logistics Systemsversus Closed Loops 

Reverse logistics—The process of moving or transportinggoods from their final destination for the purpose ofcapturing value or for proper disposal. 

Reserve logistics involves the processes for sending new orused products “back up stream” for repair, reuse,refurbishing, resale, recycling, or scrap/salvage.

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Closed loop supply chains—Designed and managed toexplicitly consider both forward and reverse flows activitiesin a supply chain. 

Explicitly designed and managed for both flows

Environmentally conscious manufacturing (ECM) is concerned withdeveloping methods for manufacturing new products from conceptualdesign to final delivery, and ultimately to the end-of-life (EOL) disposalsuch that the environmental standards and requirements are satisfied. Environmentally Conscious Manufacturing

Product Recovery aims to minimize the amount of waste sent tolandfills by recovering materials and parts from old or outdatedproducts by means of recycling and remanufacturing (includingreuse of parts and products).

Product Recovery

re-sell and re-distribute in original market  sell in secondary market  remanufacture to an as-good-as new product  refurbish - to a better state than before, but not new  parts retrieval (like cannibalisation)  repair - to a functioning state  recycle  energy recovery  hierarchy : top recovers most of the value in the product

Research Framework Raw Materials Parts Production Assembly Distribution Consumer Forward Logistics Reverse Logistics Reuse Refurbishing Remanufacturing Recycling Landfill

There are four disposition alternatives, as shown in Figure:• Reuse, that is, to immediately reuse or resell the product;• Product upgrade, which is to repackage, repair, refurbishor remanufacture the product;• Materials recovery, which includes cannibalization andrecycling and• Waste management, which includes incineration andlandfilling the product.