Chapter 15: reverse logistics
P289-305 + extra content added
1. Introduction
The concept of reusing products & materials and recovering value
Focus on the reverse flow from end customer to the original supplier, vs traditional forward flow
More and more important !
Reverse logistics practices can be used to gain competitive advantage
reputation creation, public image => higher revenue &
cost-efficiencies
Examples (also on next slides):
Waste collection and processing
Reusable packaging
Re-engineering and reworking obsolete products
Servicing and repairing broken products
2. Definition of reverse logistics
Reverse logistics can be defines as:
‘The process of planning, implementing, and controlling the efficient, cost effective flow of raw
materials, in-process inventory, finished goods, and related information from the point of
consumption to the point of origin for the purpose of recapturing or creating value or proper disposal.’
A generic reverse logistics system with
recovery options
, 3. Motivations for reverse logistics
• Government Policy and Legislation
- Legislation on the collection, transportation, recovery and disposal of used products
- Particularly in the EU
Take back of white and brown goods
Collection of sales packaging material
Seek techniques and technologies that avoid waste
Promote the recovery processes of unavoidable waste materials
• Economic Considerations
Landfill usage costs increased
Disposal costs
Recoverable manufacturing systems became more profitable
The management of return flows has become a major part of the strategic agenda of global
companies, particularly in electronics industry ( e-waste )
• Environmental Considerations
Public concern about sustainable development
Forcing companies to be responsible for their waste
Reverse logistics: adherence to environmental legislation + branding and marketing:
‘green’ company
• Shift Towards Buying Sets of Services
No longer buying physical products, but sets of services
Service contracts (i.e. maintenance contracts) facilitating the take back of end-of-life
products
P289-305 + extra content added
1. Introduction
The concept of reusing products & materials and recovering value
Focus on the reverse flow from end customer to the original supplier, vs traditional forward flow
More and more important !
Reverse logistics practices can be used to gain competitive advantage
reputation creation, public image => higher revenue &
cost-efficiencies
Examples (also on next slides):
Waste collection and processing
Reusable packaging
Re-engineering and reworking obsolete products
Servicing and repairing broken products
2. Definition of reverse logistics
Reverse logistics can be defines as:
‘The process of planning, implementing, and controlling the efficient, cost effective flow of raw
materials, in-process inventory, finished goods, and related information from the point of
consumption to the point of origin for the purpose of recapturing or creating value or proper disposal.’
A generic reverse logistics system with
recovery options
, 3. Motivations for reverse logistics
• Government Policy and Legislation
- Legislation on the collection, transportation, recovery and disposal of used products
- Particularly in the EU
Take back of white and brown goods
Collection of sales packaging material
Seek techniques and technologies that avoid waste
Promote the recovery processes of unavoidable waste materials
• Economic Considerations
Landfill usage costs increased
Disposal costs
Recoverable manufacturing systems became more profitable
The management of return flows has become a major part of the strategic agenda of global
companies, particularly in electronics industry ( e-waste )
• Environmental Considerations
Public concern about sustainable development
Forcing companies to be responsible for their waste
Reverse logistics: adherence to environmental legislation + branding and marketing:
‘green’ company
• Shift Towards Buying Sets of Services
No longer buying physical products, but sets of services
Service contracts (i.e. maintenance contracts) facilitating the take back of end-of-life
products
