Management of reverse logistics processes

Dalibor Doubek

January 2015

Content

• Introduction• Brief history• Reverse Logistics and e-commerce• Reverse Logistics models– Integrated Supply Chain (Thierry)– Hierarchical connection of reverse logistics activities

(Dekker)– Economic order quantity model (Schraddy)

• Reverse Logistics as a Customer Service

Introduction

• Reverse logistics is everywhere

• Companies can not longer afford to neglect reverse logistics

• Share 7% to 10% (average)

Brief history

• Roots in the military (the American Civil War)

• The customer service policy of Montgomery Ward’s

• Auto industry

Reverse Logistics & e-commerce

• E-commerce is the future for the logistics• The returned volume of e-commerce increases

sharply (a right to return products)• Collecting reverse logistics data and

information is difficult and complicated• Many recyclables are high value products

Reverse Logistics models- Integrated Supply Chain (Thierry)

Reverse Logistics models- Hierarchical connection (Dekker)

Reverse Logistics models – Economic Order Quantity model (Schrady)

m * Qp + n * Qr = d * Tn * Qr = r * d * T

m - number of procurementsQP - procurement quantityn - number of repair batchesQR - repair batch sized - demand rater - the recovery rateT procurement/repair cycle time

Reverse Logistics as a Customer Service

• Competitive advantage• Important market differentiators• Maintain strong customer relationships • Reverse logistics more complex than forward

logistics• Analyse returns data to discover root causes

Questions?

Thank you for your attention