Knowledge Zone - Operations



Reverse Logistics
An Important Dimension of Supply Chain Management

- by Rakesh Verma & Vinayak Vhatkar *

Previous

Part - II

Activities involved in Reverse Logistics

There are four main reverse logistic processes: -

  1. Collection

  2. Combined inspection/ selection/sorting

  3. Re-processing or Direct recovery

  4. Redistribution

Collection refers to bringing the products from the customer to a point of recovery.

In the inspection/selection and sorting phase products are being sorted according to the planned recovery option and within each option, products are sorted according to their quality state and recovery route.

Reprocessing includes: -

    Repair - Warranty returns needs repair

    Refurbishing - Large installation, building or other civil object are refurbished after which it is again in a better state

    Remanufacturing/Retrievals - Products are dismantled and their parts are used in the manufacturing of the same products (remanufacturing) or of different products (retrieval)

    Recycling - In case of recycling, products are processed in order to get the desired quality after which they are being reused, e.g., paper pulp and glass

    Incineration - Products are burned and the released energy is captured

Direct recovery includes: -

    Re-use - End-of-use returns often contain valuable components which can be re-used

    Re-sale - Supply chain returns (products in good condition) can be sold at a discount rate or at a secondary market

Redistribution is the process of bringing the recovered goods to the new users.

Next


* Contributed by -
Rakesh Verma & Vinayak Vhatkar,
PGDIE Class of 2005,
NITIE, Mumbai.