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    Key Reverse Logistics Management Elements: Gatekeeping

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    stacy gonzales
    Key elements of reverse logistics management include gatekeeping to screen defective returns, minimizing the disposition cycle time for returns processing, using flexible information systems, and establishing centralized return centers. Centralized return centers bring all return products to a single facility for efficient sorting, processing, and redistribution, creating economies of scale. They allow specialists to develop expertise in product disposition.

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    Key Reverse Logistics Management Elements: Gatekeeping

    Uploaded by

    stacy gonzales
    98 views2 pages
    Key elements of reverse logistics management include gatekeeping to screen defective returns, minimizing the disposition cycle time for returns processing, using flexible information systems, and establishing centralized return centers. Centralized return centers bring all return products to a single facility for efficient sorting, processing, and redistribution, creating economies of scale. They allow specialists to develop expertise in product disposition.

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    Key elements of reverse logistics management include gatekeeping to screen defective returns, minimizing the disposition cycle time for returns processing, using flexible information systems, and establishing centralized return centers. Centralized return centers bring all return products to a single facility for efficient sorting, processing, and redistribution, creating economies of scale. They allow specialists to develop expertise in product disposition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    98 views2 pages

    Key Reverse Logistics Management Elements: Gatekeeping

    Uploaded by

    stacy gonzales
    Key elements of reverse logistics management include gatekeeping to screen defective returns, minimizing the disposition cycle time for returns processing, using flexible information systems, and establishing centralized return centers. Centralized return centers bring all return products to a single facility for efficient sorting, processing, and redistribution, creating economies of scale. They allow specialists to develop expertise in product disposition.

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    © All Rights Reserved
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    Key reverse logistics management elements

    Gatekeeping

    Gatekeeping is the screening of defective and unwarranted returned merchandise at


    the entry point into the reverse logistics process. Good gatekeeping is the first critical
    factor in making the entire reverse flow manageable and profitable.

    Compact Disposition Cycle Time

    The companies that are best at managing their reverse logistics processes are also able
    to reduce cycle times related to return product decisions, movement, and processing.

    Reverse Logistics Information Systems

    To work well, a reverse logistics information system has to be flexible.

    Returns Transaction Processing

    In a truly integrated supply chain, everyone in the supply chain can track product as it
    moves forward through the channel.

    Electronic data interchange (EDI) standards have been developed to handle returns.
    Eventually, the internet will replace the implementation of EDI transactions

    Centralized return centers

    Centralized return centers (CRCs) are processing facilities devoted to handling returns
    quickly and efficiently

    In a centralized system, all products for the reverse logistics pipline are brought to a
    central facility, where they are sorted, processed, and then shipped to their next
    destinations. This system has the benefit of creating the largest possible volumes for
    each of the reverse logistics flow customers, which often leads to higher revenues for
    the returned items. It also allows the firm to maximize its return on the items, due, in
    part, to sortation specialists who develop expertise in certain areas and can
    consistently find the best destination for each product.

    Zero Returns

    In zero return programs, the manufacturer or distributor does not permit products to
    come back through the return channel. Instead, they give the retailer or other
    downstream entity a return allowance, and develop rules and guidelines for
    acceptable disposition of the product. A typical return allowance in many industries is
    three-and-a-half to four percent of sales to the retailer.
    A zero returns policy, properly executed, can result in substantially lower costs
    Remanufacture and Refurbishment
    The categories of remanufacture and refurbishment are: repair, refurbishing,
    remanufacturing, cannibalization, and recycling.
    The first three categories: repair, refurbishing, and remanufacturing, involve product
    recondition and upgrade. These options differ with respect
    to the degree of improvement. Repair involves the least amount of effort to upgrade
    the product, and remanufacture involves the greatest.
    Cannibalization is simply the recovery of a restricted set of reusable parts from used
    products. Recycling is the reuse of materials that were part of another product or
    subassembly

    Asset Recovery

    Asset recovery is the classification and disposition of returned goods, surplus,


    obsolete, scrap, waste and excess material products, and other assets, in a way that
    maximizes returns to the owner, while minimizing costs and liabilities
    associated with the dispositions. The objective of asset recovery is to recover as much
    of the economic (and ecological) value as reasonably possible, thereby reducing the
    ultimate quantities of waste

    Negotiation

    Deal-making is a key part of the reverse logistics process. In the forward flow of goods,
    prices are often set by Brand managers and marketing specialists. Reverse logistics
    often includes a bargaining phase, where the value of returned material is negotiated
    without pricing guidelines. These negotiations may be handled loosely. In addition, one
    or more of the negotiation partners often does not fully understand the real value of
    the returned materials, creating opportunities for third parties to operate on the
    margin

    Outsourcing Reverse Logistics

    Many companies are outsourcing most or all of their logistics activities. Some of these
    firms are extending their outsourcing to the reverse product flow

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