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Reverse logistics. concept, advantages and disadvantages

Table of contents:

Anonim

Introduction

In Mexico and in the world, the generation of garbage (waste) is increasingly dangerous, we are at a point where pollution is doing serious damage to our planet, every time pollution increases, the number of endangered species Furthermore, it increases the climatic changes that occur due to this effect, affect all living beings on the planet, so it is necessary to create and implement tools that help us reduce the generation of waste.

Reverse logistics is one of the tools that organizations should use to be called Socially Responsible Companies, since reverse logistics not only applies to the distribution of products until their sale, but rather, to the collection of waste, after their sale, the company must be committed to collecting its waste components for recycling and reuse.

Conceptualization

Logistics Concepts

“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, in-process inventories and finished products; in such a way that they are in the right amount, in the right place and at the right time. " (Promonegocios)

"Logistics and supply chain is a set of functional activities (transportation, inventory control, etc.) that are repeated many times along the flow channel, through which the raw material is converted into finished products and value is added for the consumer. Since raw material sources, factories, and outlets are typically not located in the same locations and the flow channel represents a sequence of manufacturing steps, logistics activities are repeated many times before a product arrives. to your market place. " (Ballou, 2004)

The "Council of Logistics Management" defines logistics as: "the process of efficiently planning, implementing and controlling the flow of materials, inventory in process, finished products and relevant information from the point of origin to the point of consumption for the purposes of meet customer requirements ”(Gaytán Iniestra)

"Logistics (from English logistics) is defined by the RAE as the set of means and methods necessary to carry out the organization of a company, or a service, especially distribution.1 In the business field there are multiple definitions of the term logistics, which has evolved from military logistics to the contemporary concept of art and technology that deals with the organization of the flows of goods, energy and information. " (Wikipedia)

Logistics. "It is the process by which the company adequately manages the movement, efficient distribution and storage of merchandise, in addition to inventory control, while successfully managing the associated information flows." (Bastos Boubeta, 2007)

Reverse Logistics Concepts

“Reverse logistics is the process of planning, implementing and controlling efficiently, and at an appropriate cost, the flows of raw materials, inventory in process, finished goods and related information from the point of consumption to the point of origin in order to recover the value primary or dispose of them properly. " (Gaytán Iniestra)

"Reverse logistics is known as the process of planning, implementing and controlling the flow of products from the point of consumption to the point of origin in an efficient way, with the purpose of recovering their value or that of the return itself." (Bastos Boubeta, 2007)

"Reverse logistics is the process of projecting, implementing and controlling a flow of raw materials, inventory in process, finished products in related information from the point of consumption to the point of origin in an efficient and most economical way possible, with the purpose to recover its value or that of the return itself. It is responsible for the recovery and recycling of containers, packaging and hazardous waste, as well as the processes of return of excess inventory, returns and seasonal inventories. The end of the product's life is even anticipated, in order to give it an outlet in markets with higher turnover. (Rosas Lezama, Rosas Téllez, Rodríguez Lozada, Castañeda Gutiérrez, & Torres López, 2009)

"Reverse distribution is the process consisting of the continuous recovery of products or their packaging to prevent their accumulation in landfills or the energy consumption derived from their incineration. This expands the responsibilities of the members of the distribution channel, because they become responsible for the products after they are sold and after what consumers have used them. " (W. Stern, I. El-Ansary, T. Coughlan, & Cruz, 1999)

"Reverse logistics is the process of planning, implementation and control of 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" (Mihi Ramírez, Arias Aranda, & García Morales, 2012)

"Reverse logistics, according to the Executive Council of Reverse Logistics, can be defined as: the process of planning, implementation and efficient control of the effective flow of costs and storage of materials, inventories in progress and finished products, as well as related information, from the point of consumption to the point of origin, in order to recover value or ensure its correct disposal. " (Aranda Usón, Zabalza Bribián, Martínez Gracia, Valero Delgado, & Scarpellini, 2006).

Reverse logistics

The development of the Logistics function in the organization in recent times has been very significant, becoming a strategic variable to obtain competitive advantages. Currently, companies must also address Reverse Logistics by analyzing the logistics processes related to the return of products from the consumer to the producer, recycling, the reuse of materials and components, the elimination of waste and the operations of reconditioning, repair and re -manufacturing. Entrepreneurs and company managers must pay special attention to the management of returned products, whose objective is to recover as much economic (and ecological) value as possible, thus reducing the final amounts of waste.Companies must develop an effective policy for the management of recovered products, without significantly affecting their cost structure. Companies are transferring that greater strategic weight of Reverse Logistics in the form of purchasing policies oriented to the use of reusable products, thus responding to the interest of customers towards environmentally friendly companies, or by recovering part of the value of the materials that return. to the organization, thus increasing its profits.thus responding to the interest of customers towards environmentally friendly companies, or by recovering part of the value of the materials that return to the organization, thus increasing its benefits.thus responding to the interest of customers towards environmentally friendly companies, or by recovering part of the value of the materials that return to the organization, thus increasing its benefits.

Therefore, it is particularly interesting for companies to know what options are currently available to efficiently manage the reverse flow of products in a developed market and especially, to know the activities and characteristics that Reverse Logistics presents at this time, as well as the advantages that motivate such practices, especially with regard to practices known as excellence.

“In Mexico, very few companies have capitalized on reverse logistics as an area of ​​opportunity to reduce operating costs, increase profits by up to 5% and, in turn, retain and gain customers, which undoubtedly makes them more competitive.. However, although the consultants and experts on the subject do not speak of a precise number of companies that are implementing it -because it is considered in the country as something innovative-, they agree that, above all, in these times of crisis, there have been an increase in the concern of companies to take full advantage of the advantages of reverse logistics and minimize, on the other hand, its costs. And is that, traditionally, reverse logistics is one of the areas least considered by companies, in particular, by small and medium-sized companies (SMEs),since it includes the removal of waste, recyclable products, perishable products, or absolute materials. " (Ortiz, 2009)

Guillermo Utrilla, Senior Manager at Price Waterhouse Coopers (PWC), clarifies that “it begins by defining what is being put at risk in business terms if we do not handle reverse logistics; It varies according to the industry and according to the requirements of the company, according to its way of operating.

And he adds: «We can simply have returns from a consumer products company, you can have returns from your customers because perhaps the product came in bad condition or they simply decide that it is not the product that they are going to sell in that first time and change the purchase decision, then they return the product.

goals

The basic objectives of reverse logistics can be summarized as follows:

  • Purchasing management Waste management Recall of merchandise Product classification Product engineering Reuse or destruction Return Waste management Recycling Substitution of materials

Reverse logistics. Concept, advantages and disadvantages

Advantages and disadvantages of reverse logistics

Advantage

Some of the potential advantages of implementing a Reverse Logistics program will be mentioned below:

  • Reduction of the "surprise" or uncertainty in the arrival of PFU. Reuse of some materials. Possibility of the company to cover other markets. Greater confidence in the client when making the purchase decision. Considerable improvement of the image of the company to consumers Obtaining feedback information about the product.

5.2 Disadvantages (Areas of Opportunity)

  • Previous studies are required to establish decision policies on the subject. It is not just a simple manipulation of the product. All company departments are related to the activities that Reverse Logistics intends to implement. to a Reverse Logistics process are “unpredictable”. Inspections must be carried out on each product individually and thoroughly.

The new (reverse) chain includes a number of non-existent processes in direct logistics.

It must be decided whether the company should carry out the various activities with its own resources or whether, on the contrary, it will require the services of a specialized operator.

Returns in small quantities tend to represent higher costs when integrated into the system. (Cure, Meza, & Rene)

Causes that generate the need to implement reverse logistics

  • Defective merchandise Excess inventory return Customer returns Obsolete products Seasonal inventories

Reverse logistics processes

Reverse logistics processes focus on five key objectives: procurement and purchases, reduction of virgin supplies; recycling; substitution of materials, and waste management.

In each of the business logistics processes, the five indicated approaches can be identified:

Procurement and purchasing: Involves procurement, development of suppliers and the acquisition of raw materials, components, materials for packaging, packaging, and handling units that are "friendly to the environment."

Reduction of virgin inputs: It implies:

  1. Product engineering activities, and re-training of human resources, with the purpose of: assessing reuse activities of surplus materials, preferring materials of recycled origin, choosing reusable and recyclable containers, packaging, handling units, packaging and containers, promoting the culture of "return."

Recycling: It is necessary to develop recycling policies respecting the performance or standards of the product: use recycled and recyclable materials; explore technological innovations that allow the use of recycled materials; finance studies to reduce the use of virgin raw materials.

Substitution of materials: The increase in the rate of innovation in recycling processes should promote the substitution of materials, in particular of heavier materials with lighter ones with equal or superior performance (as is the case in the automotive industry where plastics are massively replacing metal and glass parts in automobiles, as well as aluminum or "composite" materials in new truck chassis, reduce tare, facilitating an increase in the load unit for the same axle weight).

Waste management: Materials procurement policies should assess the rate of waste in the use of materials; waste management is a non-negligible cost; It may also be necessary to have sample acceptance policies, if the requirements for the management of sample waste, or simply their disposal by rejection, is costly.

Reverse logistics is undoubtedly a philosophy that any company must add to its environment, due to all the factors mentioned and given the globalization that is taking place, it is important to have a strategic reverse logistics plantation. (monografias.com)

Conclusions

This tool allows us to make companies aware that they must use environmentally friendly resources, since our planet (global village) strongly needs companies to be socially responsible, to help collect those components of their product that damage the ecosystem when the life cycle your product ends.

Reverse Logistics activities serve as a tool to support the competitiveness of organizations, to the extent that it reinforces the ties between them and the client, making the latter feel important to the supplier. A good service in every sense of the word, that is, that takes into account all the possibilities of contact with the client, makes the client feel that their requirements are being fulfilled and, therefore, that the company remains in a good position in the market.

Thesis proposal

Feasibility analysis to include reverse logistics as a requirement for the accreditation of an ESR.

Objective: Analyze the feasibility for the inclusion of reverse logistics in the accreditation of companies such as ESR, in order to ensure that their processes are friendly to the environment.

Bibliography

  • Aranda Usón, A., Zabalza Bribián, I., Martínez Gracia, A., Valero Delgado, A., & Scarpellini, S. (2006). Life cycle analysis as a business management tool. Madrid: Foundation with mental faith, Ballou, RH (2004). Logistics. Supply chain management. Mexico: Pearson.Bastos Boubeta, AI (2007). Logistic and commercial distribution. The logistics in the company. Spain: Own ideas Cure, L., Meza, C., & Rene, A. (sf). rcientificas uninorte. Retrieved on November 17, 2012, from rcientificas.uninorte.edu.co/index.php/ingenieria/article/…/1900Gaytán Iniestra, J. (sf). Emphasis. Retrieved on 11/19/2012, from http://www.endamientos.com/Presentaciones/LS/2012/Talleres/Gaytan.pdf Mihi Ramírez, A., Arias Aranda, D., & García Morales, VJ (2012).The management of reverse logistics in Spanish companies: towards excellence practices. Universia Business Review, 70-82.Monografias.com. (sf). monografias.com. Retrieved on November 10, 2012, from http://www.monografias.com/trabajos15/logistica/logistica.shtmlOrtiz, S. (05 of 6, 2009). Reverse logistics: the other way around is not the same. CNNExpansión.Promonegocios. (sf). Retrieved March 2015, 09, from http://www.promonegocios.net/distribucion/definicion-logistica.htmlPromonegocios. (sf). Promonegocios. Retrieved 11/19/2012, from http://www.promonegocios.net/distribucion/definicion-logistica.html Rosas Lezama, H., Rosas Téllez, M., Rodríguez Lozada, M. Á., Castañeda Gutiérrez, JL, & Torres López, A. (2009). Reverse logistics: An alternative for the management of end of use products (PFU).The New Organizational Management, 12-23.W. Stern, L., I. El-Ansary, A., T. Coughlan, A., & Cruz, I. (1999). Marketing channels. Mexico: Prentice Hall.Wikipedia. (sf). Wikipedia. Retrieved 11-18, 2012, from https://es.wikipedia.org/wiki/Log%C3%ADsticaWikipedia. (sf). Wikipedia. Retrieved on 11/19/2011, from
Reverse logistics. concept, advantages and disadvantages