REVERSE LOGISTICS 3

Running head: REVERSE LOGISTICS

Reverse Logistics

Delterrence Jackson

5/16/2021

Introduction

Effective delivery of goods by OEM to the consumers is a culmination of employee and shareholder efforts to hold a high-level degree in prototyping, preproduction, productions and refinements. The last stage of production marks the beginning of another cycle of handling the goods to the consumers and provide necessary logistic serves to ensure goods perform intended utility. This should give flexible logistics should the goods return to the company. The OEM takes responsibility even after the customer purchases the products and, in this case, is dissatisfied to return the product to OEM. It involves goods, information together with the accompanying infrastructure being returned to the OEM. Effective and strict systems are required for responding to remanufacturing, return, warranty claims and authorization of after-sale procedures.

Rubio and Jiménez-Parra (2017) introduce reverse logistics, evolution and recycling channels, especially in the modern closed models. With the projection of future challenges of reverse logistics, the study finds that the process should be organized and geared towards maximizing the value of the consumer goods purchased. Cannibalizations, remanufacturing competition, willingness to and perception versus satisfaction of consumers are the main challenges expected in reverse logistics. In reverse logistics, it is more than just manufacturing and delivering the products to the consumers. After the sale there several reasons that products may be returned. Malfunctions, client satisfaction and expiry of hardware agreement. The ideas of Rubio and Jiménez-Parra (2017) is that the product is ready for return as per the agreements. The customer notifies the seller and fills in the RMA documents to initiate the return process. This heads towards the OEM to take the necessary actions based on the company policy and purchase agreements.

If the problems in the reverse logistics are not resolved effectively, they elevate a problem between different actors in the supply chain; they include the suppliers, customers and the retailers who may engage each other for the experienced difficulties. It is, therefore, necessary for the OEM to directly monitor the Reverse logistic process with proper communications. Govindan et al. (2019) explore formidable solutions that guarantee ways of solving reverse logistics to achieve a competitive advantage. Effective software should be in place so that they can monitor tracking processes. It prevents the exchange of working products with defectives so that they can be returned. In the purchase, the OEM must accept the reduced value of the products in reverse logistics. In the returning, it is the initially purchased product that is rectified. Some of the challenges are minimized in prototyping and manufacturing. In forwarding logistic, the product’s value is higher than reverse logistic hence forwards effectiveness should be optimized. Stock status and tracking should be automated to reduce costs and provide a real-time update to the customers on the state of their products.

Keeping the dealers or the contractors engaged should also be a solution. It ensures handling of the product to ensure its safety. Close working relationship that includes training for the suppliers and dealers is necessary to avoid negligence-related defaults in the product. Reverse logistics should form a significant company competing for advantage as it creates value directly with the consumers (Senthil, Murugananthan and Ramesh, 2018). Value additions at the consumer’s levels should be highly regarded as it is the overall goal of an OEM to satisfy all the customer’s needs. Therefore the future concepts of reverse logistics are strengthening the networks and reducing inadequacies. OEM should value reverse logistics as a significant competitive advantage.

References

Govindan, K., Agarwal, V., Darbari, J. D., & Jha, P. C. (2019). An integrated decision-making model for the selection of sustainable forward and reverse logistic providers. Annals of Operations Research, 273(1-2), 607-650.

Rubio, S., & Jiménez-Parra, B. (2017). Reverse logistics: Concept, evolution and marketing challenges. In Optimization and decision support systems for supply chains (pp. 41-61). Springer, Cham.

Senthil, S., Murugananthan, K., & Ramesh, A. (2018). Analysis and prioritization of risks in a reverse logistics network using hybrid multi-criteria decision-making methods. Journal of Cleaner Production, 179, 716-730.

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