challenges in reverse logistics
DESCRIPTION
CHALLENGES NEED TO BE FACED IN REVERSE LOGISTICSTRANSCRIPT
CHALLENGES IN REVERSE LOGISTICS
Presented ByT. S. Sharath Logistics executive- Ensure support services
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Logistics process flow WARE HOUSE DISTRIBUTOR LOCATION/SERVICE CENTRE
DEFECTIVE COLLECTOR
CUSTOMER
PRE-SCREENING
REPAIR CENTER
SUPPLIER
DISPOSAL
F.L F.L
F.L
R.L
R.L
R.LR.L
IR UNITS/SCRAP
REFURBISHED PARTS
F.L:-FORWARD LOGISTICSR.L:-REVERSE LOGISTICS
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Reverse logisticsReverse logistics stands for all
activities related to the reuse of products and materials which are collected as defectives from customer place after replacing the good part. It may also referred as moment of products from consumer to the manufacturer or point of origin.
Since the future support is based on defectives it should be treated equivalent to good parts.
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Reverse logistics plays a vital role in the entire supply chain network.
Once the defective gets collected from the customer place the same need to be refurbished on urgent basis to support future demands.
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Challenges to be faced in reverse logisticsSince reverse logistics involves
many to one distribution point there are more challenges need to be faced.
forecasting more difficult compared to forward logistics.
Tracking the defectives is more complex.
Transit losses/damages need to look after in a serious manner.
CID(customer induced damage)
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which do not match to the expectation of the defectives standard from OEM. Which in turn creates a huge loss to the logistics provider.
Poor screening and repairing process.
Efficient time management.
Warehousing – allocation of resources for quick accessing.
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How to overcome the challengesReverse logistics framework should be
designed in such a good manner for better process.
Since the origin of the defectives are many frequent tracking and follow ups should be done.
TAT should be calculated at all the sectors right from the customer returns to the refurbishment of the defectives. From which the delay in the process can be diagnosed easily.
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Everything should be systemized. manual data maintaining may lead to some errors in tracking and stocking the goods.
System should be framed in a manner which provides clear tracking of the goods right from providing delivery report to the sender and the receiver.
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One of the major challenge in handling fragile items are the transit damages. Which results in huge loss to the logistics provider. To overcome the above packing standards should be improved and the transporters need to be taught how to handle fragile goods.
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Once when the transit losses/damage occur the same should be communicated to the respective client on urgent basis seeking some tolerance or solution.
CID creates a huge burden to logistic provider since it involves technical knowledge the same cannot be identified by logistics person. To overcome this loss engineers and service persons need to be educated well so that the defective standard will be equivalent to the expectation from vendor.
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Transportation of the goods should be framed in a systematic manner so that the tracking of the consignment becomes easier and legible.
Poor servicing results in the loss of transportation costs for the logistics provider. Hence the serviced defective parts should be equivalent to good standard.
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Efficient time management should be maintained right from collection of the defectives to repaired parts.
Warehousing plays an important role in maintaining the stocks. Binning each items in a locator helps to identify the parts easily. Frequent internal audits should be performed on regular basis in order to ensure the variance in stocks.
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ConclusionOn following the above the
challenges in reverse logistics can be minimized to some extent. Incase of any loop holes found in the entire chain the same should be eradicated without any further delay.
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Thank you
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