This Paper analyzes about Reverse Logistics and its impact of supply chain management in various Industries. Now a day’s Reverse Logistics plays a vital role in various manufacturing industries supply chain. It gives a chance to improve the supply chain and helps to analyze the Customer needs and Satisfaction level on the particular product.
Reverse logistics for all operations related to the reuse of products and materials. It is the process of transferring goods from their typical final destination for the purpose of capturing value or proper disposal remanufacturing and remodeling activities also may be included in the definition of reverse logistics growing green concerns and advancement of Green supply chain management concepts and practices make it all.
The more numbers of publications on the topic of reverse logistics have increased significantly over the past two decades the first use of the term reverse logistics in a publication was by James R titled “Reverse Logistics” published by the Council of Logistics Management in 1992.Another Council of Logistics Management book titled “Development and Implementation of Reverse Logistics Programs” by Rogers and Lemke in 1999.
Impact of Reverse Logistics:-
Now a day’s one of the biggest operational challenges is Reverse logistics in E – commerce. The growth of returns is a result of the rise of e-commerce at the consumer level, as well as more and more brands offering free shipping. Retailers are realizing that they need to keep up with the increasing number of product returns by improving their e-commerce reverse logistics. Reverse logistics impact some areas in E-commerce. Reverse Logistics helps to know about customer satisfaction on the particular product. It helps to maintain a good relationship with their regular customer. When, customer wants to return unwanted or damaged products, the company should be able to give a quickly remedy to the customers and also take a quick action for pick up the damaged products from the customers. E- Commerce reverse logistics is one of the most expensive and work intensive parts in an online business.
2. Retail Industries:-
The retail industries face a more growing challenge in managing the million of products consumer return every year.It is for retailers, returns have been absorbed as a cost of doingbusiness until recently, and the environmental impacts have been ignored. Reverse Logistics used to describe the way a company handles products for get shipped backward through the supply chain. Reverse logistics not only contains the return of damaged goods it’s also contains the unsold merchandise or goods send back from store to a company. The Challenge is reverse logistics is very complicated and unforeseeable. Items come back to retailers, they must have a little information about which products will be returned or become to the overstock. Many retailers still use a manual system to track and manage the returns of the damaged or unsold goods. The majority of returned are liquidated, returned to the manufacturer is not possible without physical and operational capacity.
3. Automotive Industry:-
Reverse Logistics have some Characteristics such as,
If the Manufacturers operations by exclusive, could reduce transaction costs but it has increased inventory costs and goods moving or transaction costs. Reverse logistics could help companies build brand awareness and get positively influences customer’s satisfaction for giveback disposable products from customers/consumers/end users to origin/manufacturers have many reasons like, damaged, not working properly and wrong product.The motivation of reverse logistics have some aspects, most commons are including environmental regulation, economic interests (reflected in reducing waste disposal costs, longer product life and saving raw materials and components), and commercial consideration. Reverse logistics helps to achieve a better performance in recycling of end-of-life vehicles.
Pursuing the first objective of our study regarding the Reverse Logistics and Its Impacts in various industries. As our point of view reverse logistics mostly benefited for end users/customers/consumers. Each and every industry can know the customers taste and preference level via reverse logistics and also companies can utilize it efficient and effectively to rise their goodwill in market and can make a good relationship with customers. At the same time it has creates a bad thinking about a company and increases the inventory level.As mentioned earlier also, Reverse Logistics is “the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, work inprocess inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.” (Rogers & Tibben-Lembke, 1999).
Based on this definition we are studied the reverse logistics practices of the end users, retailers and manufacturers. End users were mainly distinguished on the basis of their educational qualification. End users were found to have involved in any one of the four reverse logistics.