Reverse Logistics Case Study

Repairs come with many goals. These however are quite simple. Steel and Rodriguez (2008) suggest that ‘reducing turnaround time at its lowest cost while maintaining an acceptable quality level’ is one of the most important goals. This is the goal many companies wish to receive. All total costs of the operation should always be considered in reverse logistics, whether or not it is outsourced or even executed within the company. Programs such as energy consumption, recycling programs and waste generation should all be included within the repairs facilities. Turnaround time is usually the main element involved when deciding on consumers electronics, however many companies are recently finding that business customers should not focus solely on TAT. Their main concern is not falling short of product for customer replacements. This different approach would require a change resulting in a closer relationship with the customer to get a better insight on the daily inventory, and keeping track of any signs of stock out. Repair providers are faced with a lot of pressure, therefore less pressure on them may be provide a positive change and result in more accurate handling of products, as well as reduced costs in freight, which will then lead on to less emissions from transport. Repairs can be carried out more efficiently which can reduce carbon emissions, and therefore have a better impact on the environment.

3.3.4 Recycling and reusing

This sector or reverse logistics has proven to be quite difficult for companies to adapt to. Although it is the most obvious way to go green, it can be challenging for certain companies. This can be due to forecasting field failures, and certain companies’ ongoing need for certain parts. Some companies hand...

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...vice the products, and reduce the main amount of waste. These processes can have quite a significant impact on the costs of reverse logistics, and also the carbon footprint. To benefit from this practice, and be successful, the ‘green’ initiatives taken need to have a significant positive impact on the company’s carbon footprint, as well as have managed to save them a significant amount of money. Many companies such as Walmart may try to implement these practices by taking into consideration the manufacturing, packaging and product design of their products. However to truly have gone ‘green’, the company will have to take all factors into consideration including all functions affecting the environment. Reverse logistics may one day be in the customer sector, as it is the process that has control over the usage and disposal of parts and products that a company uses.