Essay on Growing Importance of Reverse Logistics

811 Words May 25th, 2016 4 Pages
COLUMN

Growing importance of reverse logistics
Prof Samir K Srivastava

Reverse logistics is the process of moving a product from the consumer to the manufacturer, or any other stage in the supply chain, for re-use or proper disposal.
It has grown in importance due to many reasons. One of the most prominent reasons is the growing concern for the environment.
Consumer demand for clean manufacturing and recycling is increasing, many times leading to legislation as well. Consumers expect to trade in an old product when they buy a new one. Cost is another reason.
Research shows that reverse logistics may be a worthwhile proposition even in the contexts where regulatory and consumer pressures are insignificant. It is
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Developing reverse logistics means that it will be more beneficial for manufacturing companies to implement refurbishing and remanufacturing operations for economic reasons alone besides meeting the consumer pressures and regulatory norms. Once such reverse logistics networks are set up, the producers will have wider choices to offer and the buyers will have wider choices to choose from. Firms may consider under which circumstances should returns be handled, stored, transported, processed jointly with

Many firms in consumer durables’ and automobile sectors have introduced exchange offers to tap customers who already own such products mainly from marketing perspective.

forward flows (integrated logistics) and when should they be treated separately. They may compare cost of remanufacturing with cost of production from virgin materials to decide on proper input mix.
Reverse logistics did not receive the desired attention in India earlier and was generally carried out by the unorganised sector for recyclable materials such as paper and aluminium. It is gradually getting recognised as an integral part of the business supply chains and managements have started to realise the need as well as complexity involved in setting up an efficient supply and return network in both products and services.
Many firms in consumer durables’ and automobile sectors have introduced exchange offers to tap

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