The Pros And Cons Of Reverse Logistics

This chapter explains more about reverse and green logistics, and both topics will be discussed, defined and explained in greater detail, to help the reader form a deeper understanding of the two issues. Through this theory, Walmart can be analysed on the impact both practices have had on the company, and how each are different. The positives and negatives of using these practices will be discussed, as well as how and why Walmart have felt it necessary to start applying these practices to their supply chain. Many sources will be looked at, to be analysed and compared to suggest whether the practices are having more of a positive impact than negative. The benefits and challenges of adapting a reverse logistics model will be assessed, as well as the green supply model used in green logistics and the issues dealing with that. The differences and similarities will be compared, using different sources and which theory would be the best in analyzing the company.

3.1 Reverse Logistics

Reverse logistics has become an increasing concern for many companies over the last decade. It is the process of the movement of goods, moving in the opposite direction, such as from the customer to the business. Some important processes involved are the physical movement of goods, customer support, warehousing and repair. Reverse logistics handles the issue of handling resources effectively. Rogers and Tibben-Lembke (1999) defines reverse logistics as the ‘process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process 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’. This definition is seen to...

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...ng the similarities and differences between reverse and green logistics can help an organization or company gain benefits through using these practices.

The most obvious difference between the two is that reverse logistics is concerned with saving money and reusing materials to decrease operational costs. Green logistics is more about the environment, such as transport, carbon emissions, and recycling. Nylund (2012) suggests that ‘green logistics is about using material friendly options for transportation and centered on saving money but places priority on the company’s image.’ Peterson (2005) thinks that recycling, manufacturing and reusable packaging is where both reverse and green logistics overlap. Reverse logistics may examine how waste is disposed however it also focuses on the cost of landfill space, rather than focusing on the actual environmental impacts.