CHAPTER 9:
REVERSE LOGISTICS
LEARNING OUTCOMES
After completing this chapter, you should be able to
• define reverse logistics and understand the importance of reverse logistics
in supply chain management
• discuss the drivers of reverse logistics implementation and identify
benefits of effective reverse logistics management
• discuss the most important barriers to reverse logistics implementation
• explain the types and reasons for product returns in a typical supply chain
• discuss the reverse logistics process and related activities
LEARNING OUTCOMES continued
• identify key decisions firms have to make during each stage of the reverse
logistics process
• compare the disposition options and explain the importance of accurate
disposition decisions
• illustrate and explain the reverse logistics process
• explain environmental standards applicable to reverse logistics.
DRIVERS OF REVERSE LOGISTICS IN
THE SUPPLY CHAIN
• Economic drivers
• Legislative drivers
• Environmental drivers
• Corporate citizenship and consumer pressures
BARRIERS TO REVERSE LOGISTICS
IMPLEMENTATION
• Economic barriers
• Internal barriers
• External barriers
• Operational barriers
PRODUCT RETURNS IN THE REVERSE
LOGISTICS PROCESS
• Manufacturer returns
• Distribution returns
• Consumer returns
PRODUCT RETURNS IN THE REVERSE LOGISTICS PROCESS continued
Figure 9.1 Types of product
returns and related reasons
in a supply chain
REVERSE LOGISTICS PROCESSES
AND STRATEGIC CONSIDERATIONS
Figure 9.2 Reverse logistics
processes and activities in a
supply chain
Source: Developed by author
REVERSE LOGISTICS PROCESSES AND STRATEGIC CONSIDERATIONS continued
• Returns collection
• Inspection and sorting processes
• Returns processing
• Disposition processes
– Reuse option
– Product recovery options
– Material recovery option
– Waste management options
ENVIRONMENTAL MANAGEMENT: ISO
14 000
• Environmental policy
• Strategy
• Structures
• Objectives
• Plans
• Monitor
• Review and auditing