Optimization Of the Reverse Logistics :
| The operational process of reverse logistics is entirely different from forward logistics and involves the implementation of material disposition management rules.The prime objective of reverse logistics is to enable the product to get its maximum value even at the end of its market life. There are various types of activities involved during the process of reverse logistics for the purpose of achieving its objective. |
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These include warehousing, repair, refurbishment, recycling, packaging, transportation and disposal. But, the entire process can be efficiently managed by adhering to certain principles.
Whenever any material is returned and is received at the Distribution Center, immediate decision must be made about the process that the item would undergo. Several times, items that are not packaged properly or damaged are mixed along with new items. This process should be strictly avoided since it can lead to a major confusion with respect to assortment. A specialized assortment area which has been equipped with automated conveyors, tables, barcode scanners and computers must be provided for the purpose of handling returns and separating them.
Once the items are assorted, they must be properly inspected for the extent of damage. Depending on this, the future course of action over the material can be taken. After the completion of separation and inspection of the returned product, the distribution center must ensure that the product has been stored in a proper place. An improper storage would only result in the decrease in the value of the product.
Sometimes, products are returned in a properly packaged and intact condition. Such type of items can be returned back to the main stock. However, while doing this one must ensure that the product is devoid of any ‘hidden damages’. In situations involving manufacturing defects, the retailer can return the product to the manufacturer through an agreement process or else send it for refurbishment with a prior permission. Items that are out-dated in the market or non-saleable can be sold to the public under reduced prices or through promotions. However, if the material does not fetch any value in the market, it is always best to recycle it in an environmentally friendly manner.
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