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Reverse logistics. a new alternative towards improvement

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The globalization and competitiveness to which organizations are currently has been increasing in recent years. This has led companies to search for new alternatives to improve their resources and processes. The demands that the market demands have increased, making quality and service new challenges to overcome. Now, taking these two strong themes about competitiveness and market demands, a new concept is attributed to an alternative that helps the progress and improvement of organizations: Reverse Logistics, a new alternative for improvement.

Logistics is commonly associated with the transport and services sector, however, this area is present in all the processes that make up an organization since it involves the activities of the flow of materials, the optimal management of resources, ensuring an efficient level of service at a relatively low cost. The conception of the word Logistics has adopted a variety of modalities where different branches emerge, introducing the Inverse or, as some authors have mentioned, Reverse.

The empowerment that this technique has obtained over the business environment has been a key element for efficiency throughout the organization. To define what refers to reverse logistics, it is necessary to determine where it arises from the beginning and the characteristics that distinguish this new conception, giving the reader the general panorama and the impact that logistics has been obtaining within organizations, as well as the vision and trends that this new term represents towards new generations and future challenges, thus marking the content of this article.

It is important to mention that the issue of reverse logistics goes hand in hand with the process of continuous improvement not only within the business sector, but also in the environmental context contemplated a strong impact for the progress of the solution to pollution that is experienced. The need for a new alternative that increases its financial indicators and there are benefits in all aspects makes logistics an expansion, as well as reinforcing what is already practiced directly from the point of departure of materials to the end customer and reciprocity in the articles or goods that are delivered to the same company is something characteristic of what was called inverse.

Within this context, we will begin to analyze the beginning of logistics as such and thus later understand the purpose of the process that reverse logistics interacts in the organizational environment. Since the logistics function is of utmost importance within companies, as mentioned by the authors (Cos, Gasca, & Esteban, 1998) “it is a total management tool and leads to directing all structural and cultural changes of companies and to increase competitiveness and profitability ”.

Starting from this visualization in which they raise logistics, it has been noticed that administrative means are used in the same way with which this term is involved. The management for the handling of materials is not only about the final part of the transformation of the products, it also involves the dispatch of raw materials to be able to carry out the process activity and thus become the final product where it will be transported to the final customer. Where reverse logistics starts from what appears to be the end of the company's intervention to converting it or transforming it into something that pays off that change.

Logistics and its background

The concept of logistics arises in the military environment, where the scope in which the bases were presented inclined the high command to search for strategies that would help to improve the movements they had to carry out, from the management of the resources with which they They counted food, number of members, weapons and provisions up to the line of the route to which they were going. Taking this supposed analogy into account as compared to a modern day industry, the staff represents the flow of materials and the trajectory that the product is heading.

The time of the Romans during their battles is a clear example of the logistical application, as mentioned by the authors (Urbina et al., 2014) “the Roman military was characterized by building canals and water conduits, as well as bringing practice rudimentary supply chains for military troops ”. Another important feature that characterized this civilization in its military sphere is that for each conquest they carried out, they planted vineyards in those places, carrying out activities to sell those plantations in order to obtain supplies and continue conquering.

In the same way, their main contribution prevails in them, which was the construction of roads with long distances for the routes they had to travel to complete their missions, emphasizing the demands and improvement they made in the wheels, since it made the movement more efficient and faster. and transfer of troops.

Directed now towards the country of Mexico itself, cultures such as the Maya carried out commercial exchanges with Mesoamericans and Teotihuacans, which led them to trace paths that would help the transport of goods and conclude their activity. On the other hand, the Aztecs also implemented a training system for their workforce in matters of transportation, since, not having animals capable of carrying out this activity, the famous tamemes emerged, which were the human resource themselves with the that they planned their movements, personnel calculation and the time it would take to carry out the commercial action for which they were destined.

Now, returning to the military point, the term logistics was coined for the first time by Lieutenant Colonel of the US Marine Corps Cyrus G Thorpe, who published his work Pure Logistics: The Science of Preparation for War in 1917, naming this character as indicated by the author (Otero, 2011) "is considered the architect of the consideration of logistics as scientific knowledge". The application of this tool was the most notorious until World War II.

As the authors describe (Reverter & González, 2006) “logistics in the military environment is the art of moving troops on the ground and supplying them with food, weapons,… supplying them with everything necessary to carry out campaigns with success". Also highlighting the unsuccessful campaigns presented with Hitler and Napoleon towards Russia the importance of all this.

However, after the logistics application within the military sector, its conceptualization in the business field later arises, taking into account the first contributions of the 20th century, leading the beginnings of the subject indirectly by Frederick Taylor and his division of labor, Henry Gantt with the best known graph that manages the activities of a worker and nowadays of a process and not to forget Henry Ford with the production in line, series and large scale where it constitutes the flow of the products.

Subsequently, it was not until the 60's where the direct impact with business logistics had its most representative peak, figures such as Smykay (1961) where the author (Servera-Francés, 2010) mentions that this character “in the beginning the function logistics is uniquely identified with the management of the physical flow of products from the manufacturer to the customer ”he writes a letter with the name Administration of physical distribution: logistical problems of the company. On the other hand, Peter Drucker, as mentioned by the author (Long, 2006), called the term logistics "the dark continent of the economy, pointing out that it is the most neglected but at the same time the most promising area of ​​business."

Years later, logistics evolved with support tools that integrated more the detailed function that would be in charge and would have participation in the production process until the completion of the marketing cycle. Framing the beginning of reverse logistics with information technologies that emerged in the 1970s. The authors (Don & Doldán, 2010) mention that after the interest in the acquisition of these technologies, many executives focused on improving quality and performance, where they optimized production times from the supply of their raw materials.

These authors also point to the emergence of the proximity of what is conceived as reverse logistics, starting in 2003, where the Council of Logistics Management (CLM) introduced the idea of ​​a return flow. Thus inferring by the Reverse Logistic Executive Council definition to this term "Reverse Logistics is the process of moving goods from their typical final destination to another point, with the purpose of capturing value that would not otherwise be available, for the proper disposal of the goods. products".

C

In order to define a concrete conceptualization of reverse logistics, it is necessary to understand the meaning of logistics. Since from this part a new modality that is interpreted by different authors who coined a display of features that characterize each term. Starting with the etymological origin where it comes from, the author (González, 2003) points out that “the word logistics comes from the French term logistique, from the logis lodging”.

Another of the terms mentioned by the Council of the Logistics Management

Now, focused on reverse logistics, we have the following definitions: For the author (Boubeta ', 2007):

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 their own evolution.

The author (Lacalle, 2013) defines it as:

A form of logistics that facilitates the creation of channels for the selective collection of waste of all kinds. It includes very diverse operations such as the management of excess inventory material, return of purchases to suppliers, recovery of packaging and containers, return of household appliances, electronics and computers or, on occasions, waste management.

A final definition is from (JUÁREZ, 2015):

Planning, implementation and control processes of the flow of raw materials, inventory in progress, finished products and the information related to them, from the point of consumption to the point of origin, with the purpose of recapturing them to create value or discard them.

From these definitions the meaning of reverse logistics is determined where the starting point is detected as the product or that is obtained by the client considered as waste or defective to emerge it into a new transformation process and give it another use that generates profitability for the organization and client.

F

Based on the perspective that the author (Callaba, 2004) exposes in his work Reverse Logistics, the following points are raised. The author describes that within the reverse logistics process different management processes interact:

  1. Return of products: this includes the items that were rejected in the marketing process due to some inconvenience or defect found, it is also integrated by the surplus inventories at the end of their life cycle either due to product change, end of season and Return for the reuse of containers, packaging, packaging and handling units: for this activity, batch and product conditioning are provided and thus provide supplier management in different strategies Reuse of materials: according to strategies that are specific to each product, in Some products can be reused. Reconditioning of rejected products: based on different strategies, a product can be reconditioned in the market Management of residues and / or hazardous waste:If the specifications allow it according to the material used for containers or packaging, it is subjected to a recycling process. Handling of residues and / or hazardous waste: these can be sent depending on the type of material to be reused or recycled to reduce its pollution impact. Management of substitute recycled materials that reduce the use of virgin materials: this implies innovations, reengineering and search for sources of supplyManagement of substitute recycled materials that reduce the use of virgin materials: this implies innovations, reengineering and search for sources of supplyManagement of substitute recycled materials that reduce the use of virgin materials: this implies innovations, reengineering and search for sources of supply

P

Just as logistics has a follow-up in the steps to be carried out in order to exercise its functionality, as previously mentioned, reverse logistics goes in a descending sequence in the normal logistics process. Through different sources consulted, the following information obtained from the author (Olivares, 2000) is presented, who exemplifies in a very specific way a model of the system that performs reverse logistics, representing it in the following phases:

Evaluation

This phase is divided by two types of evaluations: the problem and economic or financial. The first is the part where existing problems within the supply chain must be recognized, such as:

  • Returns arrive before processing or disposal is adequate There is a large amount of inventory of returns that is in the warehouse There are unauthorized or unidentified returns There are long processing cycle times Total cost of returns and processing is unknown Difficulty handling returns causes customer discomfort Customer confidence in a repair activity is lost

On the other hand, there is the financial evaluation, where it mentions that reference prices and tangible benefits should be used. Where mainly costs associated with logistics activities, savings generated, use of resources are used and as the main measure, convincing and negotiation to use this type of measures.

Reduction of materials

For the reduction of materials it is based on the replacement of these by less polluting ones or as the author mentions "friendlier" to the reuse or recycling processes, in order to obtain a reduction in costs

Reduction of returns

This stage can be included in the materials reduction phase since both have the same system from beginning to end when the reverse cycle of the materials begins and can be studied from the beginning in order to perceive some dangerous effect as a drug in state not suitable for the consumer. The purpose of the returns is to ensure that the minimums are carried out and thus can be easier to manage, avoiding consuming resources that may be more profitable in other parts of the process.

Collection of returns

It is said that it is the most complex part of reverse logistics with respect to returns, since it is in this phase that the management of design points begins, such as collection times, route planning, system transfer points, analysis of those involved in the system.

Classification

Once the returns stage is finished, the type of treatment that will be carried out on each one is continued, that is, what type of activities associated with reverse logistics are carried out.

apply, either subjecting the materials to a process of recycling, reuse, reprocessing, reuse, etc. In short, what type of use will be given to the materials.

Placement of returns

Within the return phases, this stage is the most important since here each one of them will generate any value. With the placement of the returns, it is decided to what type of distribution they will be directed and to which market they will focus, whether primary or secondary.

I d ition and control

Finally there is the measurement and control phase. Where the effectiveness of the silver objectives is measured punctually in the beginning and the control of the efficiency of the process, which also allows the generation of a feedback

This is where the process to which, according to the line of business and type of company to which it will be submitted, ends, the decision of the senior managers, as well as executives, must infer certain observations that this system adapts, eliminating what is not necessary. In the same way, it is important to analyze certain factors that must be considered in the phases. In Table 1, aspects are indicated based on each phase (Olivares, 2000).

Phase Aspects to consider
Evaluation ROA (Return Over Assets) or profitability analysis

Preferential costs or goodwill

Disassembly and rework costs

Inventory rotation

Return on assets

Reduction of materials and Reduction of returns Selecting the right channel strategy

Distribution centers

E-Business: Logistics as a value-creating mechanism

Post sale attention

Product life cycle analysis

Collection of returns Route planning and adequate collection times.

Transfer of returns

Consultations with potentially affected groups

Heuristic methods for the collection

Classification Repair, Renovation, Recycling, Reprocessing,

Cannibalization, Reuse

Original text


Beneficios y retos de la logística inversa

La aplicación de logística inversa en las empresas trae consigo una variedad de beneficios financieros, operacionales, sociales y ambientales. A partir de estos factores se demuestran diferentes aspectos donde impacta individualmente a cada uno de los mismos.

Desde el punto de vista financiero:

  • No existen pérdidas en los productos con un ciclo de vida ya caducado.Se generan más ingresos al reutilizar o reciclar los artículos.La empresa extiende sus productos.Existe el aprovechamiento de todos los recursos materiales.

Desde el punto de vista social:

  • Genera confianza entre los clientes.Imagen con productos de calidad.

Desde el punto de vista ambiental:

  • Concientización ambiental en la organización y consumidores.

Sin embargo, no todo viene siendo “color de rosa” existen algunas barreras por las que la aplicación de esta técnica o herramienta trae consigo. Con base al artículo publicado por el autor (Vázquez, 2008), se extrajeron los siguientes criterios mencionados por el mismo, quien encuentra como ciertas limitaciones los siguientes aspectos:

  • Estimación de demanda más compleja.Transporte de muchos a uno generalmente.Calidad del producto no uniforme.Envase a menudo dañado o inexistente.El precio depende de muchos factores.A menudo no es importante la rapidez en la entrega.Los costos inversos son menos visibles y rara vez se contabilizan.Gestión de inventario muy compleja.Ciclo de vida del producto más complejo.El marketing puede estar complicado por varios.

Conclusiones

Se puede analizar que la logística inversa es una nueva modalidad que trae consigo una variedad de beneficios económica, sociales, ambientales y organizacionales a nivel mundial. El cambio que se ha generado y el estudio constante hacia las mejoras de los procesos son parte de la competitividad y exigencias que el mercado se encuentra demandando. La necesidad de la búsqueda hacia una alternativa esta al auge global.

La logística inversa cambia totalmente la mentalidad y crea un área de oportunidad donde se es aprovechado los recursos con los que prácticamente se daban por perdidos. Es necesario también tener en cuenta los limitaciones y barreras ante el proceso de aplicación para esta herramienta. No sólo se deben tomar en cuenta las innovaciones y herramientas de apoyo, se deben analizar de manera profunda la forma en que se va a implementar y el estudio preciso de la demanda, mercado, análisis financiero entre muchos otros factores que puedan verse como una amenaza y no como el beneficio que se busca.

Agradecimientos

Referencias

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Reverse logistics. a new alternative towards improvement