From The Supply Chain, &Nbsp, Look At Reverse Logistics Management.

From the whole

1 connotation, composition and characteristics of reverse logistics

1.1 connotation of reverse logistics

The term "reverse logistics" (ReverseLogistics) was first proposed by Stock in 1992 in a research report of the American Logistics Management Association (CouncilofLogisticsManagement). In his report, he pointed out that reverse logistics is a logistics activity that includes product return, material substitution, reuse of goods, disposal, reprocessing, maintenance and remanufacturing.

In this paper, reverse logistics refers to the re acquisition of products.

1.2 the composition of reverse logistics

Reverse logistics consists of two parts: reverse logistics and reverse logistics.

Does reverse logistics mean that the downstream customers will return products that do not meet the order requirements to the upstream suppliers?

The process of reverse logistics is the same as the flow of conventional products; the recovery of reverse logistics refers to the recycling of the waste goods held by the final customers to the enterprises in the supply chain.

1.3 characteristics of reverse logistics

(1) reverse.

From Figure 1, we can see that the flow of returned goods or discarded goods in reverse logistics is opposite to the direction of normal commodity flow, that is, from consumers to middlemen to manufacturers to suppliers.

(2) uncertainty.

The location, time and quantity of reverse logistics are uncertain.

Forward logistics is not the same, quantity, punctuality and designated delivery points are their basic requirements.

(3) complexity.

The location of the reverse logistics is more scattered and disordered, and it is not possible to concentrate the pfer to the receiving point once; in addition, the process of the return goods or the discarded goods is complicated, which leads to the complexity of the management.

The treatment cost is high.

This is mainly due to the lack of standardized packaging and uncertainty, which makes it difficult to make full use of the scale and efficiency of pportation and warehousing. Another important reason is that many commodities require manual testing, judgement and processing, which greatly increases the cost of labor and the rate of aging.

5.

The increasing value.

For some discarded goods, it has no value to consumers, but after reprocessing through reverse flow, it can regain their value. Therefore, such products have increasing value.

2 implementation of reverse logistics advantages

2.1 saving social resources and reducing material costs?

Increase enterprise efficiency

With the rapid development of social economy, the shortage of resources is becoming more and more serious, and the contradiction between supply and demand of resources is more prominent. Reverse logistics shows more and more advantages.

For example, the recovery of beer bottles is carried out with Blue Ribbon beer. The beer bottles after being washed and sterilized are put into use again, which can reduce the cost by 20% to 40% compared with the production of a new bottle.

In addition, because the repurchase price of waste products is low and the source is adequate?

The repurchase of these products can greatly reduce the material cost of enterprises, thereby increasing the efficiency of enterprises.

2.2 increase the added value of products?

Increase enterprise competitive advantage

We know that products consist of three parts, namely, core products, form products and additional products.

In today's fiercely competitive market, enterprises compete with each other in the first two parts of the product. Therefore, gaining competitive advantage is mainly determined by added products, namely product services.

For the end customers?

Can reverse logistics ensure timely return of products that do not meet the requirements of the order?

Is it helpful to eliminate customers' worries?

And?

The reverse logistics of enterprises reduces the cost of products, so enterprises pfer value to customers at a lower price, so that customers can get more additional benefits, thereby increasing their trust and return to enterprises.

Expand the market share of the enterprise.

2.3 improving the living environment of mankind?

Improved corporate image

By implementing reverse logistics management, enterprises have effectively reduced the amount of waste emissions, and have undertaken more social responsibilities for improving the human environment, concerned about the health of the people, thus improving their own image.

2.4, it is conducive to improving product design and packaging, and promoting continuous innovation.

In order to achieve the goal of saving resources and reducing product costs, enterprises should adopt materials that can be reused many times in product design according to the information flow in reverse logistics, and adopt standard parts design to facilitate the pportation of unified means of pport, thereby promoting continuous innovation in product design, production, packaging and pportation.

{page_break}

3 how to manage the reverse logistics system of an enterprise

The implementation of reverse logistics can not only save resources, save enterprise costs, create economic value for enterprises, but also reduce environmental pollution, enhance corporate image and create social value.

Therefore, more and more enterprises realize that reverse logistics has increasingly become a powerful weapon for competition among enterprises, and reverse logistics has been mentioned at a strategic height.

Sears, executive vice president of logistics, once said: "reverse logistics may be the last piece of virgin land for enterprises to reduce costs."

So how do we manage the reverse logistics system of an enterprise?

3.1 enterprises should establish an independent logistics function department, and management has a comprehensive understanding of the reverse logistics system and enough attention.

Reverse logistics is a complex activity. It needs professional personnel to manage and coordinate. Therefore, it can not be attached to other departments. It must set up an independent department to manage.

Moreover, the management of enterprises should pay enough attention to the work of reverse logistics.

According to a survey conducted by more than 300 enterprises managers who are responsible for supply chain and logistics, 40% think that the main reason for the failure of reverse logistics is that management does not have a deep understanding of the importance of reverse logistics system, so that it has not attracted enough attention. Second, the company lacks relevant policies and operation systems, and once again is negligent management and lack of logistics talents.

Therefore, as a manager, we should have a long-term strategic vision, attach importance to the construction of enterprise reverse logistics system, formulate policies conducive to the implementation of reverse logistics, give the logistics department enough power and vigorously train logistics talents to implement reverse logistics.

3.2 build a reverse logistics system within the scope of supply chain.

From the schematic diagram of the logistics system mentioned above?

Reverse logistics is a complex activity, involving suppliers, manufacturers, intermediaries, customers and other node enterprises. If one of the nodes fails to deal with the problem of return, it will affect the performance of the entire supply chain, so enterprises should implement reverse logistics.

It is also necessary to cooperate with other enterprises in the supply chain.

In addition?

In the face of fierce competition, in order to improve customer satisfaction and retain customers, enterprises adopt a loose return policy.

This enables enterprises to turn the risk of downstream customers to enterprises themselves.

Is there a whip effect in the supply chain?

The information gained by upstream enterprises will be seriously distorted, which will bring greater risks to enterprises.

In order to achieve the best interests of the supply chain?

As far as possible to reduce the risks caused by bullwhip effect, enterprises must share information with other enterprises in the supply chain.

Establishing strategic partnership to reduce unnecessary commercial return to reverse logistics.

In other words?

Enterprises must build reverse logistics system within the scope of supply chain.

3.3 reduce the flow of goods and packaging materials into reverse circulation.

For example, in the design of product and production process, we should fully consider the need of reverse logistics and make it convenient for recycling and utilization in the future.

Strict control of return policy can also reduce the volume of returns.

3.4 strengthen the management of reverse logistics through related information technology.

Enterprises can help reverse logistics achieve standardization through the application of information technology.

For example, the use of three-dimensional barcode technology can store more information about goods, so that information about the structure, production time, material composition, sales status and handling suggestions of commodities can be added to commodities through bar code, and also facilitate effective and timely tracking of goods entering reverse circulation.

In addition, sorting technology, storage technology and other applications can improve work efficiency.

3.5 establish reverse logistics processing center.

Centralization of products that enter reverse circulation into the processing center will result in scale benefit, which is a reason for the establishment of regional distribution centers.

Some people think that the reverse logistics processing center can be combined with the regional commodity distribution center and use the human resource facilities such as warehousing, pportation and other hardware and management together. Finally, the reverse logistics will be fully integrated with the forward logistics.

This is a very ideal design, but some practices are not successful.

Some managers who manage two-way logistics at the same time say that this approach is like "serving two masters" and often fails to work. As a result, reverse logistics has become a neglected victim in management.

Most of the current practice is to use an independent reverse logistics processing center, or even to use the same facility with the distribution center, but maintain two independent operating systems.

3.6 properly use the third party logistics to help manage reverse logistics.

Enterprises can outsource all or part of reverse logistics to the third party logistics companies. In addition, establish industrial alliances or similar industry organizations to jointly handle the management of reverse logistics, and promote scale efficiency and technological progress.

4 development trend of reverse logistics

With the intensification of market competition, enterprises have relaxed the conditions of return, in order to retain more and more critical customers.

However, with the increasing number of returned products, many enterprises feel that it is more and more difficult for them to deal with the returned products completely, so they are looking for outsourcing of reverse logistics business.

The third party logistics company has developed to meet this demand.

The third party logistics company has its own advantages in undertaking the business: first, it is a professional logistics company. It can design reverse logistics business according to the actual situation of enterprises, and conduct professional, scientific and standardized operation.

Secondly, it can scale operation and produce scale benefit.

It collates the returned products and classifies them to improve processing speed.

Thirdly, the software of third party reverse logistics companies usually allows retailers to track products through computers, and manufacturers can use this information to alert suppliers.

Moreover, manufacturers can make more effective purchase decisions based on these information, which can further reduce the return rate.

For most SMEs, they can not invest in the construction of reverse logistics system. For large enterprises, in order to concentrate their efforts on forming core competitiveness, it is also necessary to outsource some or all of the reverse logistics activities.

Therefore, the third party reverse logistics has become the trend of reverse logistics development.

5 concluding remarks

With the continuous emergence of the economic value and social value of reverse logistics, enterprises should attach importance to reverse logistics activities and deal with various problems in the development process of reverse logistics.

Moreover, enterprises should design a reasonable reverse logistics system according to their own conditions, and strengthen cooperation with other enterprises in the supply chain to enhance the competitiveness of enterprises.