27.04.

2020
PİRİ REİS UNIVERSITY
GREEN AND REVERSE LOGISTICS
MIDTERM EXAM

1. Explain the reasons why businesses choose to apply Green Logistics Processes with examples.
2. Please explain the Benefits of Reverse Logistics.
3. Please explain the Areas of Reverse Logistics.
4. Please explain the Reverse Logistics Process.
5. What are the main steps of Reverse Logistics Model?

Assoc. Prof. Murat Çemberci

Good Luck
SİMGE KARATAŞLI
201634019

1)
We can say that logistics is the main source of carbon emissions. It takes a large share in the carbon
emission cake of the logistics and transportation industry. “Green Logistics” is to measure and try to
minimize the negative impact of all activities on the environment in order to carry out logistics
activities in a way that will cause the least harm to the environment.
 Buyers want the materials they consume to be more environmentally friendly every day and they
apply a great deal of pressure especially to companies that are world brands.
Now products have become almost equal in quality and price. By choosing products that are
environmentally friendly, buyers have added a new criterion to the criteria related to the selection of
products.
As a natural result of this, brand companies started to produce their products with the least harmful
effects on the environment. As every new product could be imitated in a short time, the use of
environmentally friendly substances had to become widespread.

I would like to give examples of some articles I have read;

Reysaş Logistics uses recycled materials in almost all units from its center to its warehouse and
ensures that they are collected and evaluated. Reysaş Logistics is a logistics company that is sensitive
to the environment, saves energy, aims to provide efficiency and livable soils, prevents
environmental pollution, invests in innovative applications that contribute to the reduction of carbon
dioxide emissions and makes a difference in this sense. Some of their applications are;
* Electricity generation with photovoltaic solar panels on the roof of the warehouse, reducing carbon
dioxide emission, creating added value from the idle warehouse roofs.
* Carbon emission reduced by the use of natural gas engines as an alternative fuel in tow trucks and
trucks, and reduction of exhaust emission values.
* The use of rain water provided from the warehouse roofs for irrigation of green areas and olive
groves.
* Lean logistics applications
* Providing added value by recycling wastes and using recycled materials, reducing environmental
pollution.
2)

The main benefits of "reverse logistics" are economic, ecological and legal benefits.
A good reverse logistics application provides the company with a competitive advantage by reducing
the cost of raw material and material acquisition, reducing the risk of purchasing the customer,
shortening the response time, fulfilling social responsibility and improving the image of the
'environmentalist company'.
 
Larsen identify five ways that proactive reverse logistics can have a positive impact on profitability;
  1. Increased revenues realized from secondary sales
  2. Offering new products in place of unsold or slow selling stock
  3. Shareholder goodwill from acting with social and environmental responsibility
  4. Reduced operating costs from reuse of recovered products and components
  5. Higher asset turnover due to better management of returns inventory

3)
1. Returns prevention and warranty/repair policies
2. Logistics
3. Repair operations
4. Recycling and reuse
5. Product design for environment and service

1. Returns Prevention and Warranty /Repair Policies 

According to Reverse Logistics, return prevention and the setting of customer policies are related to
sales and customer service.
Reverse logistics professionals would claim that sales and customer service often disregard ideas and
improvements that might come from reverse logistics departments.
These might be ideas such as possibilities to reduce NTF (No Trouble Found) returns and return
policies. But since NTF returns are getting more likely to occur because of complex products and
services.
All recommendations that can reduce returns should become more valuable. It also gets more
essential to face the problems from a more cross-functional perspective. 
2. Logistics
Since reverse supply chains needs to be reexamined because of trade-offs within labor costs and
transportation costs are changing remarkably.
When evaluating potential outsource partners these factors and changes in warehouse locations,
repair operations locations must be considered.
Reverse logistics needs to be calculated and compared to look at the positive and negative sides if
returns and repairs are supported with one regional and centralized location.
Since the shipments most likely must travel long distances which has a negative impact because of
fuel consumption and carbon emissions. Which is better then, a centralized or localized handling and
repair facility. 
3. Repair Operations
To reduce turnaround time (TAT) with the lowest cost and keeping an acceptable quality level is the
achievement a company wants.
Total costs of the current operations should be considered in reverse logistics no matter if it is
outsourced or executed within the company.
Energy consumption, reuse/recycling programs, supplier networks and waste generation must be
considered within the repair facilities. In consumer electronics decision makings TAT is considered
and used as a main element.
But TAT is no longer the company's customers focus but instead there is a greater importance on
“not falling short of product for customer replacements”
4. Recycling and Reuse
The fourth area is recycling and reuse which can be challenging for several companies because of
forecasting field failures and the ongoing need for parts.
Two examples of how companies handles this is that they keep a product for years hoping that they
will recover some value from a customer who is willing to take the obsolete part or product. The
other example is that they have a standing policy to sell off or dispose products that has had no
demand in 90 or 120 days.
Here reverse logistics can affect and have an opportunity to affect awareness and the results of part
planning. This can be achieved through good products that handles forecasting and planning of part
supply. When these products are implemented properly, they can provide a more precise picture of
when parts/products should be liquidated.
5. Product Design for Environment and Service
The following topic is the product design for environment and service. This means that the packaging
and the product should be designed in a sustainable way, such as materials and packaging. But here
reverse logistics need to be involved to help with the design process and factually demonstrate the
impact that it has on their operation. Since reverse logistics needs to easily service products and
reduce amounts of materials waste.

4)
Reverse logistics is a process that encompasses all logistics activities from the used product, which is
no longer needed to the user, to the product that can be reused in the market. In other words,
reverse logistics includes physical transportation of the used product from the end user to the
manufacturer in terms of distribution planning. The next step is to convert the returned product into
a reusable product by the manufacturer.
There are different options that companies can choose from when the goods are returned.
1. Sending supplier: If it is a possibility to return the product to the supplier for a full refund it
would be the primarily option.
2. Reselling new customer: A second option is if the product has not been used it can be re-
sold to another customer or perhaps be sold through an outlet store.
3.Sending Salvage Company: The third option if the quality of the product is not enough for
option one and two, the goods can be sold to a salvage company, which sells the goods to foreign
markets

Picking refers to bringing the products to a buy-back point from consumers. At this point, the
products are examined, in other words, the quality of the goods are evaluated and a decision is made
for the type of recovery or recovery. Then the goods are classified according to the buyback and
directed to their destination. If the quality of the good is as good as new, it is immediately returned
to the market, that is either reused, resold or redistributed. If not, another type of redemption is
applied. In other words, more processing is required now and the product is reprocessed.

If the product is faulty and is not in enough good quality to be sold, then it can be remanufactured,
reconditioned or refurbished in order to increase the selling price. 
For this action, a third-party firm can be hired if the company itself does not do it within the
company. But after these actions have been taken, the product should be sold as reconditioned or
remanufactured, not as a new product.
If there is no possibility for recondition the product in any way, the company will dispose the product
for the least of costs. But all valuable materials reclaimed or reused should be removed and
reclaimed before disposing the goods. 

5)

1. Centralization of Operations
2. Finding a Leader
3. Developing business processes
4. Linking business processes
5. Gathering accurate data
6. Ensuring real time visibility
7. No firefighting

1. Step-Centralization the Operations: Firstly the company should centralize their returns operations. 
Reorganizing all returned items, types, people and processes into one centrally managed group can
be the cornerstone for change and success.
2. Step-Finding a Leader: The following step is to find a leader.  Department managers have the
secondary accountability for the returns. A leader should be appointed since returns are easily
pushed over to someone else since someone else has made a mistake.
3. Step-Developing business processes: The following step is to develop a very defined business
processes. Since returns are complex, multi process transactions and every return needs to be
handled differently. With a good process it will enable you to quickly react and find a resolution for
the customer return and regain the highest value possible for each returned item.
4. Step-Linking business processes: The fourth step is to link your business processes. Your process
should be built with a system that is streamlined through each action and through each group with
“one touch” and “automated” handoffs for the components and the relevant data. When adapting
these parts it will generate the largest processing savings and reduce issues or errors and finally it will
significantly reduce reconciliation time between groups. 
5. Step-Gathering accurate data: The following step is to gather accurate data. If the information for
returns are not gathered, unnecessary errors might occur, and faulty handling or costly assumptions
might occur. With a data collection that is careful and detailed it can result in big payoffs and good
metrics to assess performance. 
6. Step-Ensuring real time visibility: The sixth step is to ensure real-time visibility. By adapting these
3rd party service providers, managers, clients and customers can resolve these issues immediately. 
7. Step-no firefighting: The last step is called no firefighting. This means that an aggravating work
environment is created by ongoing issues that need to be resolved as soon as possible. By monitoring
any process regarding to firefighting that is then followed by immediate action will in the end release
the stress that is related to the situation, what will then in the end improve the company's system.