1. Introduction
The implementation of logistics goes back many years, when man had the need to move food from the place where it was produced to the place where they needed it, making it easier for man to settle in any region.
Logistics over time has undergone changes in proportion to the evolution of people's needs, however logistics in recent decades has been a reason for study for organizations that want to improve their economy.
The above served to abandon the idea that logistics only serves as a special means or method for the organization of a company's distribution, giving rise to reverse logistics.
Currently, reverse logistics is being implemented as a strategic management tool, as a competitive advantage in the market and in turn allows it to obtain higher economic returns from products or services that no longer meet the needs of consumers, however they represent a investment that the same organization can recover.
2. Conceptual framework
2.1 Supply chain
For Sasson Ródes (2013) it is a network of facilities and means of distribution whose function is to obtain materials, transform materials into intermediate products and finished products, and distribute these finished products to consumers.
It is important to mention that the organization is part of a horizontal and vertical supply chain. The supply chain is made up of three links or levels: supply, manufacturing and distribution (Sasson Rodés, 2013):
- Supply: answers the questions How? Where? and when? raw materials are acquired for the elaboration of materials. Manufacture of materials: Consists of the process of transforming raw materials into final products or services. Distribution: Consists of a distribution system consisting of a network of warehouses, distributors, retailers and trade, through which the necessary means are sought to deliver finished products or services to consumers.
2.2 Direct Logistics:
Logistics comes from the English word "logistics", the record of its first implementation was in the military field, which is defined by the RAE (2013) as the set of means and methods to carry out the organization of a company, or a service, especially distribution.
For Thompson (2013) logistics is an operational function that includes all the activities and processes necessary for the strategic management of the flow and storage of raw materials and components, inventories in process and finished products; in such a way that they are in the right amount, in the right place and at the right time.
Therefore it can be said that the purpose of logistics is to solve or inhibit any problem that is a consequence of the time, place and way of supplying any product or service.
A part of the success of any organization is determined by the capacity for integration and coordination of each of the activities that make up the logistics chain (Figure 1).
The logistics chain is made up of a set of interrelated processes; ranging from the search for suppliers to obtain the raw material to the delivery of the finished product or service to the customer.
Logistics chain
Figure 1. Logistics chain (Author: José Luis Garay, 2003).
Figure 1 shows the necessary activities that make up the logistics chain, which are listed below:
- Select the appropriate and reliable suppliers. Acquisition of raw materials and supplies. Warehouse of raw materials and supplies. Production process. Warehouse of finished product. Sale and distribution of finished product. Customer service.
The main objective of the logistics chain is to efficiently provide good quality products, at a good price (low costs), in a timely manner and in the right place so that the consumer can satisfy their needs.
A key factor for the proper functioning of the logistics chain is that there must be an exchange of information between the different links or members of the logistics chain.
Logistics seeks to strategically manage the acquisition, movement, storage of products, inventory control, information flow and the distribution channel in such a way that they are channeled so that the present and future profitability of the company is maximized in terms of costs and effectiveness (García Olivares, 2013).
To know how the logistics chain works, it is very important to carry out an analysis of quantity, quality, location, price and time, all of the above must meet demand in terms of cost and effectiveness.
2.3 Inverse:
Adj. That it is opposite or opposite in order, direction or sense (Farlex, 2013).
3. Background to reverse logistics
The history of reverse logistics dates back to the beginning of man on earth to satisfy his needs, where he had to recycle tools or objects.
Table 1 shows the evolution of the concept of reverse logistics over time.
Table 1. Evolution of the concept of reverse logistics
|
Epoch |
Use |
| Stone age | Use of chips as points on the arrows, obtained from the development of tools |
| Ancient cultures: Mesopotamian, Inca, Aztec, Greek or Roman | 1) They recycled the local coins of the conquered towns, when they were melted or sometimes they were only sealed with the brand of the new regent. 2) After a battle they recycled the weapons, turning them into agricultural utensils or new weapons. |
| Industrial Revolution | Economic growth based on technology, using intensively, extensively and irrationally natural resources, for the
mass production of products. This would have serious consequences for the environment later on. |
| 50's and 60's | The principles of "environmental awareness" are born, such as the need to recycle PFUs and thus avoid further damaging the
environment. |
| 70's | 1) Visibility of environmental deterioration and depletion of natural resources and the costs associated with the creation of new laws that
regularized the activities of organizations, to reduce the environmental impact, for which reason it forces organizations to worry about the final destination of their PFU either reusing them to manufacture new ones or eliminating them correctly. 2) Design of new methodologies that allow the sanitation and recovery of the environment, in turn seeking economic development. |
| 80's | Integration of the zero defects method and the TQM, measuring and reporting
operational performance in financial terms. |
| 1985 | The CLM defines logistics
as a part of the supply chain process that plans, implements and controls the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to satisfy the requirements. the client's. |
| 90's | CLM publishes the first reverse logistics studies as a business and partnership aspect. |
| 1992 | CLM publishes the first definition of reverse logistics «… The term commonly used to refer to the role of
logistics in recycling, waste disposal and handling of hazardous materials; a broader perspective includes everything related to the logistical activities carried out in the reduction of input, recycling, substitution and reuse of materials and their final disposal. |
| nineteen ninety five | The definition of logistics made by the CLM undergoes an expansion, considering the operations designed for a
strategic client. |
| 1998 | Rogers & Tibben Lembke describe reverse logistics, including the objective and the logistics processes involved. The
European reverse logistics group, Revlog defines: The process of planning, implementing and controlling the flow of raw materials, inventory in process and finished goods, from- a point of use, manufacturing or distribution to a point of recovery or adequate disposal. |
| 2003 | The logistics concept undergoes an expansion again, for which the CLM defines logistics as: «A part
of the supply chain process that plans, implements and controls the efficient and effective forward and reverse flow and storage of goods, services and information related from the point of origin to the point of consumption in order to satisfy customer requirements. |
4. Reverse or reverse logistics
Currently, multiple problems or inconveniences have been detected in the last links of the logistics chain, which are the distribution of finished products, sale and delivery of finished products to consumers, causing increased costs for the organization.
Some of the problems raised in the last links are:
- Out-of-time delivery of finished products to customers. Incomplete order delivery. Poorly packaged products. Broken products.
Due to the negative impact on the economy of organizations caused by the problems mentioned above, organizations are currently interested in studying and analyzing the logistics chain; obtaining a new methodology called "reverse logistics".
So reverse logistics is a methodology of planning, implementation and efficient control of the effective flow of costs to establish a framework of logistics activities that are carried out from the point of consumption to the point of origin.
Through which it is intended to collect, disassemble and process finished products used and / or damaged or that no longer meet the needs of consumers, also known as end-of-life products (PFU), maximizing the use of value, their sustainable use or in your case a correct elimination.
Figure 2 shows the route or process followed by reverse logistics, which consists of transporting the PFU from the user's hands to the producer, but also in charge of transforming the returned products into newly usable products.
Direct and reverse logistics.
Figure 2. Direct and reverse logistics.
Therefore, every organization wants the logistics chain to be free of problems or inconveniences in any link, thus avoiding extra costs that affect its profit profit.
4.1 Vectors of the existence of reverse logistics
There are three vectors to promote and develop reverse logistics, which are shown in figure 3:
LI Vectors
Figure 3. Vectors of the LI
4.2 Cost benefits or Returns
A big reason for the implementation of reverse logistics in organizations is the large number of returns they have faced in recent years, which has negatively impacted their financial status.
One solution to this problem is that retailers and organizations are promoting the effective and efficient reinsertion of returns in the commercial chain, positively affecting costs by reducing them and, on the other hand, recovering the value of PFU. This is considered a business strategy for positioning the organization in the market.
This has led organizations to innovate in the area of return policies, being more flexible, allowing them to obtain a competitive advantage and gain the trust of their customers and be loyal to the organization on their next purchase, despite the inconvenience or failure that the finished product or service could present.
Some of the activities that cause returns of finished products are:
- The product or service does not meet the needs of consumers The product or service is lacking in quality Excess inventory Inventory obsolete Products Seasonal inventories
4.3 Legal-environmental requirements
Previously, organizations were not responsible for the destination of their products, once these products reached the end of their life cycle or useful life.
But because some products were harmful or dangerous to the environment and health, governments had to apply new policies to regulate the activities of the organizations and hold them accountable.
In the event that the organizations do not comply with the requirements or laws, they are subject to financial fines, which harm the organization's capital.
What caused a revolution in the processes and ideologies of the organizations, when reconsidering the PFU, as a business alternative and the possibility of incorporating the PUF in the productive or commercial chain.
4.4 Social Responsibility (RS)
The consumer selects products that are safe and that do not harm the environment.
4.5 Advantages and disadvantages of reverse logistics
Advantages and disadvantages of reverse logistics
Table 2 advantages and disadvantages of reverse logistics
4.6 Difference between direct logistics and reverse logistics
Once the concepts and the importance of direct logistics and reverse logistics in the organization were established, it is necessary to clarify that it is not always possible to transfer the methods and concepts from one to the other, because there are significant differences between the two.
Table 3 below shows the differences established by Tibben-Lembke and Rogers, 2002.
Table 3. Differences between LD and LI
Differences between LD and LI
5. Reverse logistics classification
The following classification is based on the state or phase of the life cycle of the returned product, each group is differentiated from each other by strategic objectives and operational methods.
Figure 4 shows the inverse logistics classification.
Guarantees / quality, commercial
Figure 4. Reverse logistics classification
5.1 Reverse post-sale logistics
Reverse post-sale logistics to the specific area of action that deals with the direction and operation of the physical flow and the corresponding logistical information of post-sale goods, not used or with little use, which for different reasons return to the different links of the direct distribution chain, which are made up of a part of the reverse channels through which these products flow (García Olivares, 2013).
The return flow of these products is inserted into the links of the direct logistics chain.
5.1.1 Strategic objective:
It is adding value to product returns whether for: business reasons, errors in order processing, product malfunctions.
It is in charge of the planning, operation and control of the flow of the return of the post-sale products for reasons: guarantees / quality, commercial and replacement of components see figure 5.
Guarantees / quality, commercial
Figure 5 Guarantees / quality, commercial
Guarantees or quality:
They are the products that are returned due to defects or process or operation failures, which can be repaired and reinserted in the primary or secondary market, adding value again to these products.
Commercial or stocks:
Return of products to the organization due to shipping errors, settlement of sales station, stock points, which will be returned and placed in other sales channels to generate value.
Component substitution:
It consists of the change of durable and semi-durable components in repairs during the useful life of the products, which can be re-manufactured, allowing the products to return to the primary or secondary market.
5.2 Post-consumer reverse logistics
This type of LI directs and operates the physical and information flow of products after they have been consumed or used by society, returning them to the business or production cycle, within this classification are industrial waste and the PFU that may be give another use.
5.2.1 Strategic objective:
Giving value again to the PFU of the society, but that can be given another use, these products flow through the reverse channels of re-use, disposal and recycling to the final destination.
The post-consumer LI must plan, operate and control the return flow of post-consumer products or their constituent materials, classified according to their state of life and origin (Figure 6): Under conditions of use, end of useful life and industrial waste.
Classification of the state of life and origin
Figure 6 Classification of the state of life and origin
In conditions of use: refers to activities where the durable or semi-durable product can be reused, thus extending its useful life in the reverse process of re-use within the second-hand market until its useful life is exhausted. End of life reverse logistics can occur in two areas: durable or semi-durable goods.
Supply chain and reverse logistics
5.3 PFU recovery system
Once we are clear that reverse logistics can be used as a sustainable competitive advantage through the recovery and management of PFU, it is necessary to analyze the means by which these products will return to the supply chain (Rosas Lezama, Rosas Tellez, & Col., 2009).
It is necessary for the organization to establish and visualize a PFU recovery system (see figure 8), in a way that allows it to save on costs. The easiest way to recover PFUs is by creating PFU recovery centers as shown in Figure 8.
PFU recovery system
Figure 8. PFU recovery system
5.4 Typology of logistics networks for product recovery
For an organization to be able to design a PFU recovery system, it is important that it define through which types of networks it will bring the product back to the organization. Figure 3 below shows the three types of LI networks.
Types of LI networks
Figure 9 Types of LI networks
Recycling networks:
It is the network with the simplest structure, as it is the network with the fewest links and centralized, characterized by requiring a high amount of inputs (recovered products), but of little initial value.
Remanufacturing Networks:
The structure of the remanufacturing network is multilevel and decentralized; so synergies with the direct channel are sought. These networks are used to recover parts or components of products with high added value.
Reusable Product Networks
They have a decentralized structure, with simultaneous circulation of original and reused products, in which the cost of transportation is the most significant.
These systems reintroduce the PFUs into the supply chain once the cleaning and maintenance operations have been previously carried out.
It is necessary to mention that an organization can integrate the three types of reverse logistics networks within a system, as shown in Figure 10, where the return of the PFU can also be differentiated either by a return or by recovery.
Logistics for recovery
Figure 10 Logistics for recovery
5.5 Possible alternatives in the recovery of products
Once the product has been returned to the organization, the organization can manage the product in various ways in order to recover part of the product's value considering the following aspects: feasibility, technique, product quality, existence of infrastructure, costs involved, environmental consequences, among others.
In Fig. 11 the different possibilities that can be given when it comes to somehow recovering these types of products are presented (Thierry, 95).
Product recovery possibilities
Figure 11. Product recovery possibilities
- Direct Reuse / Resale Repair Restoration Remanufacturing Cannibalization Recycling Incineration Landfill
Reuse:
It consists of recovering the product, giving it a new use. This is limited to certain types of products, since at present the products become obsolete quickly; due to technological advances.
Repair, restoration, remanufacturing and cannibalization
Restoration and remanufacturing repair is an inverse process that involves improving product quality through reconditioning.
The difference between the first three is the degree of complexity of the process that varies from one to the other, where the process with the highest degree of complexity is remanufacturing, followed by restoration and finally repair.
On the other hand we have cannibalization, which consists of the recovery of some components to be inserted into other products.
Recycling
It consists of reusing the PFU using them as raw material in new manufacturing processes. This has the disadvantage that people believe that the products that were manufactured from PFUs, the new product is of low quality. However, it is thought that this will be the solution in the future.
Energy Recovery
It is based on the extraction by “combustion” of the energy content of some parts of the PFU. This is not convenient due to the high degree of emission of gases that pollute the environment and the low utilization performance of the components.
Spill
This alternative is the last one that is recommended to eliminate the PFUs at the end of their useful life, due to the requirements, inconveniences and investment that are necessary to establish a landfill.
Despite the alternatives for the recovery of PFU or products with their useful life ended, which were mentioned above, it is important to clarify that the best way for the organization to deal with returned products that were not used is by entering them into new markets, that is, resell them to other consumers.
In case the product conditions prevent it from being resold or the organization wants to raise the price of the product, then the organization is forced to subject the product to processes such as: repair, restoration, remanufacturing or cannibalization.
It is important to mention that the greater the degree of complexity of the treatment or processing of the PFU increases with them the costs, so it is vitally important to compare the profit obtained from the future sale of the products and their costs of the process; if the gains are less than those of the treatment.
Although this result is not satisfactory, it is recommended to choose an alternative since the laws require it, which is why it is recommended to take advantage of most of its "recycling" components and deposit it in a controlled landfill.
5.6 Benefits of implementing reverse logistics
When an organization adds reverse logistics processes to its traditional supply chain, this chain can be called a circular supply chain, since the reverse flow closes the cycle (García Olivares, 2013).
A circular supply chain improves the supply of products, services and information better than a traditional supply chain would, since it reduces costs while reducing environmental impact.
Table 3 below shows the benefits of LI in relation to services / market, costs with respect to operations and environmental safety, based on a Krikke synthesis (García Olivares, 2013).
Table 3. Benefits of LI implementation by Krikke (2003)
Benefits of LI implementation by krikke (2003)
Service / Market
Costs
Environmental security
The return service improves customer satisfaction. Reduced risk of legal liability. Reduces the environmental impact.
Reduction of research and development time (time to market). Recovery of the value of materials and components.
Compliance with current legislation.
Increase the availability of spare parts. Recover the value of labor.
More reliable recovery of defective products.
Timely feedback through just-in-time recovery. Avoid disposal costs.
Improvement in product quality through reengineering.
Reduces the risk of obsolescence through timely returns.
Proactive repairs.
Lower new production of spare parts.
"Green" image.
Reduction of returns.
5.7 Barriers to reverse logistics
The great obstacle according to Byrne (1993) that the implementation of reverse logistics in organizations faces is the economy, where the taxpayers are the ones that pay for the management of waste, through the rates imposed by the government or due to increases price on products.
The manufacture of non-returnable products is cheaper
Idea that recycled materials are of low quality.
The result is that currently they have not considered developing strategies in reverse logistics
6. Case studies
Reverse logistics facilitates the creation of selective collection channels for industrial waste, end-of-life vehicles and tires, waste of electrical-electronic equipment, or construction waste (Hortal & Francisco Navarro, 2003).
Two cases of reverse logistics are described below:
The Ricoh group established a reverse logistics system, which facilitated the collection and recycling of plastic boxes, this system was implemented in the rest of the company, allowing the global reduction of 500 tons of packaging waste, saving 400.00 euros. They also assigned a code to each box and through RFID technology they obtained traceability for their products and packaging.
Another example is the electrolux group that is dedicated to the manufacture of household appliances originating in Motala (Sweden), who implemented reverse logistics for the collection and recycling of PFUs that are used instead of the raw material, in their manufacturing processes. new products.
The above left great profits for the organization in the sale of said products, which were calculated between 25 and 50%.
7. Conclusion
Reverse logistics is a tool that is used for planning, implementing and controlling the flow of raw materials, inventory in progress, products that are no longer in use from the point of consumption to the point of origin, in order for the organization to recover part of the value of the PFU when reintegrating them into its supply chain is already to be recycled, reused or disposed of in a responsible way, reducing the environmental impact.
Currently reverse logistics can be used as a business strategy by any organization, which can allow for a competitive advantage in the market for the organization.
It is very important that organizations are aware of the consequences that the implementation of reverse logistics can bring, but also of the great benefits such as: reduction of the environmental impact and an economically quantifiable impact.
On the other hand, reverse logistics allows to maintain and heal the relationship organization-suppliers and organization-customers; since it works as a means to improve communication between both parties and thus improve product quality and reduce costs.
8. Thesis proposal:
Implement a reverse logistics system for the recovery and reuse of PFU (Hazardous Waste) in the PEMEX organization.
9. Objective:
Perform a diagnosis and analysis implementing reverse logistics to evaluate and manage the PFU of hazardous waste.
Reduce the environmental impact generated by the deposit of hazardous waste in unregulated landfills
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Obtained from the Spanish Royal Academy: http://lema.rae.es/drae/?val=Log%C3%ADsticaRosas Lezama, H., Rosas Téllez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmlWhat is it and what is it for? Obtained from Reverse digital storage and logistics magazine: http://www.interempresas.net/Logistica/Articulos/50133-La-logistica-inversa-que-es-y-para-que-sirve.htmlRAE. (March 24, 2013). Logistics. Obtained from the Spanish Royal Academy: http://lema.rae.es/drae/?val=Log%C3%ADsticaRosas Lezama, H., Rosas Téllez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmlnet / Logistics / Articles / 50133-Reverse-logistics-what-is-and-what-is-it.htmlRAE. (March 24, 2013). Logistics. Obtained from the Spanish Royal Academy: http://lema.rae.es/drae/?val=Log%C3%ADsticaRosas Lezama, H., Rosas Téllez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmlnet / Logistics / Articles / 50133-Reverse-logistics-what-is-and-what-is-it.htmlRAE. (March 24, 2013). Logistics. Obtained from the Spanish Royal Academy: http://lema.rae.es/drae/?val=Log%C3%ADsticaRosas Lezama, H., Rosas Téllez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmles / drae /? val = Log% C3% ADsticaRosas Lezama, H., Rosas Tellez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmles / drae /? val = Log% C3% ADsticaRosas Lezama, H., Rosas Tellez, M., & Col. (December 2009). Reverse logistics: An alternative for the management of End of Use Products (PFU). Obtained from International Magazine The New International Management: Sasson Rodés, R. (March 24, 2013). Supply Chain - Logistics. Obtained from The Prism: Thompson, I. (March 24, 2013). Logistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmlLogistics definition. Obtained from Promonegocios.net: http://www.promonegocios.net/distribucion/definicion-logistica.htmlLogistics definition. Obtained from Promonegocios.net:
