It is important to understand the term the word logistics, as it is very easy to confuse with other terms in the supply chain. According to the Supply Chain Professionals Council, the logistics term is as follows:
“ Logistics management is the part of supply chain management that plans, implements and controls the forwarding and the efficient and effective flow of goods, services and related information between the point of origin and the point of consumption to satisfy the requirements. from customers. ” (Council of Supply Chain Management Professionals, 2018).
Logistics is a part of the supply chain that is responsible for planning and using resources within the supply chain. In such a way that it seeks to control in the most efficient way the resources used by the organization to fulfill the purpose or objectives of the companies. Its scope ranges from the supply of raw materials, production control, inventory management, transportation, and order fulfillment.
Distribution channel
By Distribution Channel we mean all those points through which the merchandise or products have to pass in order to reach the final customer. It covers from raw material suppliers, production factories and distributors. The distribution channel is all the hands through which the product or the elements that make up a product have to go through before reaching final customers.
Direct channels are all those where the distribution of the product or service is carried out between the manufacturer and the customer, without intermediaries. Indirect channels do have intermediaries between manufacturers and customers, these can mainly be wholesalers who have the function of distributing the products within a specific area to all the retail distributors who are in charge of having contact with the end customers.. Mainly, the retail distributors are in charge of attending to the needs of the clients, such as providing payment facilities and even granting credit.
Direct Logistics
It is responsible for satisfying end customers in a fast, economical and efficient way for organizations. This type of logistics is in a direction of the company towards the clients. It has a resemblance to what a basic supply chain would be, where it goes through suppliers, factories, distributors and finally end customers.
As shown in (Diagram 01), direct logistics has the characteristic of being linear, it ranges from suppliers, factories, distribution to reaching customers.
Direct Logistics Scheme
What is Reverse Logistics?
Reverse logistics is responsible for the recovery of goods or products that have been returned by customers for changes or returns, as well as the recycling of materials used in manufacturing such as packaging, packaging or hazardous waste. It is very useful to reduce the levels of environmental contamination and can also be used to reduce the high levels of stock of the distributors and transport them to locations with higher demand and these products are sold.
It seeks to recover materials from the point of sale to the points of origin, this being in the most efficient way and with low costs. The objective of reverse logistics is to recover the value of the materials to meet the future needs of customers, as well as reducing levels of pollution to the environment.
Unlike direct logistics, which is one-way, reverse logistics can return some component or material to any part of the supply chain. As shown in Scheme 02. These materials that are returned through the supply chain can be used for recycling or reuse, repair or restoration, re-fabrication, controlled dumping, and even incineration. (Navarro, 2017)
Reverse Logistics Scheme
Advantages of Reverse Logistics
For companies that use reverse logistics on a daily basis, they tend to be companies that achieve an excellent external image towards their customers. One of the clearest advantages is in the environment, since the environmental impact of consumption residues is reduced from the consumption of many products.
There is no doubt that reverse logistics has a greater impact in increasing customer confidence since the return of products that may be defective is taken into account, which can provide a greater competitive advantage unlike competitors who do not consider reverse logistics within their operations. Thanks to these returns that customers make, they can provide feedback on the products and services offered by end customers.
Some of the Advantages for organizations are as follows:
- Increased customer confidence. Recovery of defective or damaged products. Better image of the organization. Reduction of environmental impact. Re-supply of materials. Decreased risk of product obsolescence. Possibility of entering new markets.
Thanks to reverse logistics, goods can be rotated from locations where they are not sold to other locations where there is greater demand. Achieving avoid having lagging inventory that may become obsolete or expired.
Disadvantages of reverse logistics
If it is true that reverse logistics brings too many benefits for organizations, it is necessary to be aware of its disadvantages since the logistics system tends to be more robust and the costs for its implementation and maintenance can be high.
Firstly, it is advisable to carry out previous studies for the implementation of reverse logistics, since it is very likely that new processes will have to be added in the departments and the production system may not be prepared to adapt to the principles of reverse logistics.
Some of the Disadvantages of Reverse Logistics are the following:
- Need to carry out previous studies for the application of a reverse logistics system. In many occasions there will be a need to hire specialized consultants. Make changes in procedures and the creation of new processes in each of the departments for the execution of reverse logistics. Creation of new processes that were not considered in direct logistics, this can cause increased costs.
Reverse logistics cannot be applied to all companies since there are different barriers such as financial ones, logistics costs increase, and it is even possible that there are deficiencies in infrastructure such as lack of space for the placement of materials. Internally, human resources may not be adequately trained and there is no awareness of the benefits of applying reverse logistics to the organization.
Direct vs. Reverse Logistics Differences
- Direct Logistics: It is possible to make very accurate estimates and demand forecasts.Reverse Logistics: Demand estimates and forecasts are more complex to perform.
- Direct Logistics: Large volumes of materials are transported to reduce costs.Reverse Logistics: This can be of many products or even a single product, which costs can be very variable.
- Direct Logistics: This mainly becomes uniform in all products. Reverse Logistics: Fully variable, unknown in many cases.
- Direct Logistics: It is completely standardized and uniform. Reverse Logistics: Many times it is damaged and non-existent.
- Direct Logistics: Completely standardized and easy to calculate. Reverse Logistics: They depend on many factors, making it very difficult to calculate.
- Direct Logistics: Tends to be low and the importance of speed of delivery is recognized. Reverse Logistics: In many cases speed of delivery is not important.
- Direct Logistics: They are clear and easy to handle by accounting systems. Reverse Logistics: They are less visible and are rarely accounted for correctly.
- Direct Logistics: Relatively very easy to handle Reverse Logistics: Very complex to account for and store.
(Vega, 2015)
We can define it as the use of different technological advances to carry out logistics procedures that are friendly to the environment. Today CO2 emissions to the environment is one of the main pollution problems facing the world, as these CO2 emissions lead to drastic climate changes.
According to Antonio Iglesias (Expert in Logistics and Supply Chain) ensures that the transport and storage processes are responsible for 10% of total global emissions. Of this percentage, 75% correspond to truck traffic. (LOPEZ, 2017)
Green Logistics Objectives:
- Recycling of waste: Thanks to the use of reverse logistics it is possible to recover materials from the customer to any part of the supply chain. The objective is to recover the value of these materials through recycling. Ecological transport: Different alternatives are sought in transport, such as autonomous vehicles, electric vehicles, and even in the future we could see drones making deliveries. Green Stores: These stores have the characteristic of being environmentally friendly, they make savings in the use of energy and water. It seeks to reduce the distance of product searches (reduce search, extraction and manipulation time). Likewise, objectives such as the use of less paper, reuse of packaging material, LED lighting systems, are considered.solar panels and use of clean energy. (Rodrigo Andres Gómez Montoya, 2016) Use of Raw Materials: It is about using the resources used in logistics processes in a better way. Some companies like IKEA replaced wooden pallets and replaced them with other materials such as paper and cardboard. In the same way, it is sought that the packaging of the products be pleasant for the environment. (SEAS Blog, 2016)
Mobile Recycling in Latin America
Once the end of the life cycle of a cell phone has come, it is discarded by mobile phone users. According to statistics, in Colombia in 2007 alone, around 2000 tons of cell waste were generated, equivalent to 15 million cell phones. (BARROS, 2014)
In Mexico in 2012, 26,051 telephones and 78,936 accessories were collected at points of sale that the Telcel company placed at its points of sale so that people could deposit their equipment that they no longer used. The América Móvil group is committed to being a socially responsible company, where the following commitments were made in 2013.
- Decrease in prepaid cards Smaller Cardboard boxes of packaging More efficient cell phone batteries
The use of reverse logistics within the logistics processes of cell phone companies is of utmost importance since within the phones we have materials that are toxic to the environment and must be recycled correctly. Similarly, reverse logistics protects the environment by recycling its components that can be used to manufacture other cellular equipment.
Reverse logistics in the collection of cell phones has to be a joint task of citizens with telephone companies. Therefore, the awareness of society is an important factor in combating pollution caused by cell phones.
References
BARROS, JJ (2014). REVERSE LOGISTICS OF MOBILE DEVICES - FOR ENVIRONMENTAL MITIGATION - IN A TELECOMMUNICATION COMPANY IN COLOMBIA. MILITARY UNIVERSITY NUEVA GRANADA, 25.
SEAS blog. (2016, 12 22). What is Green Logistics or Green Logistics. Retrieved from www.seas.es:
Council of Supply Chain Management Professionals. (2018, 12 29). CSCMP Supply Chain Management Definitions and Glossary. Retrieved from
Definition of. (2018, 12 29). DEFINITION OF LOGISTICS. Retrieved from definicion.de:
Galán, JS (2018, 12 29). Distribution channels. Retrieved from Economipedia:
LOPEZ, AI (2017, 12 13). What is Green Logistics and what benefits does it bring? Retrieved from www.esic.edu:
Navarro, F. (2017, 02 02). What is reverse logistics? Retrieved from revistadigital.inesem.es:
OBS Business School. (2018, 12 29). What is logistics and why it is confused with supply chain management. Retrieved from www.obs-edu.com: https://www.obs-edu.com/int/blog-investigacion/operaciones/que-es-logistica-y-por-que-se-confunde-con-gestion- supply-chain
Rodrigo Andres Gómez Montoya, AA (2016). Green distribution center model: environmental friendliness and operational efficiency using a process approach and a taboo search metaheuristic. University of Medellin, 17.
Vega, M. (2015, 11 21). Reverse logistics. Retrieved from blogspot.com:
