Reverse Logistics manages the return of goods in the supply chain, in the most effective and economical way possible, it takes care of the recovery and recycling of containers, packaging and hazardous waste; as well as the processes of return of excess inventory, customer returns, obsolete products and seasonal inventories, it even anticipates the end of the useful life of the product, in order to give it an outlet in markets with higher turnover.
This term of Reverse Logistics is not used only to refer to the role of logistics in the return of the product, but also refers to the reduction in origin, recycling, the reuse of materials, the substitution of materials, the elimination of waste and scrap, repair and remanufacturing. Its introduction is the result of the growing environmental awareness in industrialized countries, which leads to the problems of collecting waste and used products or components and their recycling.
The main objective of this work is to reflect on various concepts of Reverse Logistics, reach conclusions about it and propose the basic strategies for its success in reverse supply chains, constituting an invaluable tool to achieve a high level of integration in the chain and the preservation of the environment.
Development
Economic globalization, regulation and standardization in industry, infrastructure development, technological advances, and environmental sustainability are forcing companies to rethink the way they do business, as well as to seek new approaches to maintain and expand their business. presence in the market. In short, new business strategies that go through the rationalization of manufacturing operations, as well as the launch of initiatives to serve new markets, design new products and new ecological concepts.
Therefore, taking into account all the processes, procedures and the introduction of demanding environmental legislation, which obliges manufacturers to carry out a control of their products to raise the level of environmental protection, the still unknown Reverse Logistics arises: renovation, recycling and collection of products, containers and packaging.
Reverse Logistics is increasingly present in the business world. In a competitive environment, many companies have found that the reverse flow of goods can significantly reduce costs.
The importance of Reverse Logistics according to bibliography 1 has increased in recent years as a consequence of:
- Sustainable development:
Appearance of new international directives (Extension of producer responsibility, Internationalization of environmental costs, Recycling targets and prohibition of hazardous substances).
Environmental Challenges (landfill crisis, shortage of natural resources, linear nature of the industrial system).
- Reverse Logistics represents 4% of total logistics costs. 600,000 average vehicles are deregistered each year in Spain. Distributors who adopt Reverse Logistics programs save between 1-3% of their sales, reduce a lot of time and money dedicated to managing resource returns, transportation, and billing reconciliations. Increased return rates.
It can be seen that there are forces that encourage the use of Reverse Logistics, among these they stand out in three categories:
Economic reasons (direct and indirect)
Legislative reasons.
Reasons for Extended Liability.
This term of Reverse Logistics is not used only to refer to the role of logistics in the return of the product, but also refers to the reduction in origin, recycling, the reuse of materials, the substitution of materials, the elimination of waste and scrap, repair and remanufacturing. Its introduction is the result of the growing environmental awareness in industrialized countries, which leads to the problems of collecting waste and used products or components and their recycling.
There are several or different definitions of Reverse Logistics, which has various names or nicknames such as retrologistics, reverse logistics, returns management, recovery and recycling, or green logistics depending on the industrial sector.
There are different definitions of Reverse Logistics that have common aspects and significant differences, which are analyzed below:
1. Reverse logistics includes all operations related to the reuse of products and materials. refers to all the logistical activities of collection, disassembly and processing of materials, used products, and / or their parts, to ensure a sustained ecological recovery. » (two)
2. It is the process of efficiently planning, implementing and controlling 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, creating value for them, or discard them. " (3)
3. «With reverse logistics in the broadest sense we understand all the processes and activities necessary to manage the return and recycling of goods in the supply chain. Reverse logistics encompasses product distribution, recovery and recycling operations. " (4)
4. "Operational, administrative and IT processes through which the return of merchandise and / or logistical supports within the supply chain is managed in the most effective and efficient way possible." (5)
5. «The Reverse Logistics process is the path through which assets and data move backwards in the traditional supply chain. The key components of the reverse logistics process are return processes and product disposition. " (6)
6. «It is the process of planning, implementing and managing the efficiency of the flow of raw materials, inventory process, finished products and information, from the point of consumption to the point of origin in order to recover the value of the merchandise or proper use. " (7)
7. "… term frequently used to refer to the role of logistics in returning products, reducing supplies, recycling, substituting and reusing materials, disposing of waste, reprocessing, repairing and remanufacturing." (8)
8. «Reverse logistics is responsible for the recovery and recycling of containers, packaging and hazardous waste; as well as the return processes, excess inventory, customer returns, obsolete products and seasonal inventories, it even anticipates the end of the product's life in order to give it an outlet in markets with higher turnover. " (9)
9. Reverse logistics is the set of processes, management and control of the product collection from the point of sale and / or consumption to the manufacturer or logistics center. (10)
10. Green logistics: which deals more broadly with environmental problems, although as its name indicates it is more associated with the definition of environmental quality, which in recent years has come to mean: “… Safe drinking water, healthy ecosystems, safe food, toxic-free communities, safe waste management and restoration of contaminated sites. (eleven)
11. Recycling logistics: In all cases, they establish the new use that will be given to waste or discarded products, once their life cycle is over. (12)
12. Reverse Logistics: It can mean great opportunities for companies, such as: lower costs, potential benefits, new business opportunities, environmental quality initiatives. (13)
Once the concepts are related, a summary table will be made comparing the main elements of the definitions shown with a view to proposing a new concept that will be taken into account in Cuba for the analysis of Reverse Logistics in current conditions, due to the importance of the The same, since the generation of waste is increasing dramatically in both the industrial sector and the population due to the replacement of electrical appliances and the modernization of the Cuban industry.
Table No.1 Comparison of common aspects in the definitions of Reverse Logistics of the different authors
x: Application in the concept
Taking into account the above elements, the authors propose the following definition:
It is the process of planning, implementing, efficiently controlling and continuously improving 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, recovering or create value for them, or ultimately discard them. "
This definition implies different strategies that are fundamentally related to all the actions of recycling, recovery or reuse, remanufacturing and reduction in each of the links of the reverse supply chain where the company has a direct or indirect interference of economic benefits (this is reflected in the reduction of costs, decrease in the use of materials, obtaining valuable spare parts, use of cleaner technologies, reprocessing of materials in order to use them for the same purposes, among others), even when the benefits do not are immediate, tracing reverse logistics strategies can be a strategic step if you want to achieve a good (environmental) image, links with the client,due to the fact that there is a growing increase in environmental awareness in society and achieving higher performance levels in the logistics chain.
Strategy for collection and classification: the waste is evaluated taking into account different criteria such as:
Status of the residue or waste.
Degree of danger.
Destination of the residue or waste.
According to the origin.
Degree of control over the residue or waste.
Characterization of the residue or waste.
Temporary storage according to its classification.
Strategy to reduce or eliminate waste: Strategy that involves an analysis and design of technologies and products that reduce inputs (substitution of materials, improvement of the product from the environmental point of view, use of more efficient handling means, analysis of the means packaging, among others) costs, energy, water, inventory, maintenance, hazardous materials and / or waste or throughout the supply chain.
Strategy to reuse or remanufacture resources: Strategy to develop reverse logistics that involves organizing the rotation or reuse of resources in the supply chain in such a way as not to cause waste and / or make the most of the potential of each of the resources and with them the demand for new resources is reduced and the impact on the environment is reduced. Reuse is to reuse a product or material several times without "treatment", it is equivalent to "direct recycling". Give maximum utility to objects without the need to destroy or dispose of them.
Recycling strategy: Strategy to structure a chain of processes that can exceed the limits of the company itself, aimed at giving it a useful use or making the waste produced at the different points of the supply chain non-aggressive to the environment. This use may involve the development of new processes to reprocess or treat waste. Example treatment of gray and black water, nutrients, biogenic waste, recycling of metals, paper, glass, plastic, cardboard, etc. that constitutes a simple or complex process that a material or product undergoes to be reincorporated into a production or consumption cycle, whether this is the same in which it was generated or a different one.In terms of absolute ownership, pure recycling could be considered only when the material product rejoins its natural and primitive cycle. However, and given how restrictive this pure meaning is, the definition of recycling is extended to broader processes. According to the complexity of the process that the material or product undergoes during its recycling, two types are established: direct, primary or simple; and indirect, secondary or complex. Recovery is the subtraction of a residue from its definitive abandonment. In this process, a recovered waste loses its character of "material destined for its abandonment", so it ceases to be a waste itself, and through its new valuation it acquires the character of "secondary raw material" equivalent to "indirect recycling".However, and given how restrictive this pure meaning is, the definition of recycling is extended to broader processes. According to the complexity of the process that the material or product undergoes during its recycling, two types are established: direct, primary or simple; and indirect, secondary or complex. Recovery is the subtraction of a residue from its definitive abandonment. In this process, a recovered waste loses its character of "material destined for its abandonment", so it ceases to be a waste itself, and through its new valuation it acquires the character of "secondary raw material" equivalent to "indirect recycling".However, and given how restrictive this pure meaning is, the definition of recycling is extended to broader processes. According to the complexity of the process that the material or product undergoes during its recycling, two types are established: direct, primary or simple; and indirect, secondary or complex. Recovery is the subtraction of a residue from its definitive abandonment. In this process, a recovered waste loses its character of "material destined for its abandonment", so it ceases to be a waste itself, and through its new valuation it acquires the character of "secondary raw material" equivalent to "indirect recycling".and indirect, secondary or complex. Recovery is the subtraction of a residue from its definitive abandonment. In this process, a recovered waste loses its character of "material destined for its abandonment", so it ceases to be a waste itself, and through its new valuation it acquires the character of "secondary raw material" equivalent to "indirect recycling".and indirect, secondary or complex. Recovery is the subtraction of a residue from its definitive abandonment. In this process, a recovered waste loses its character as a “material destined for its abandonment”, so it ceases to be a waste itself, and through its new valuation it acquires the character of “secondary raw material” equivalent to an “indirect recycling”.
Strategy for its controlled destruction: it is used when it is not possible with any of the previous variants to carry out an adequate treatment of the waste either due to economic problems or because there is no adequate technology for said purposes and two alternatives can be analyzed fundamentally:
Controlled dumping: It consists of storing waste in large areas that are excavated and filled with alternative layers of garbage and compacted earth. It is essential to choose a land located in a geologically and topographically suitable area to avoid contamination on the surface or groundwater. Because the anaerobic decomposition of organic waste generates gases, the landfill must have good ventilation to prevent explosions. The walls are waterproofed with polyethylene to prevent seepage into lower layers. In addition, the landfill is covered with a layer of clay that waterproofs the soil to prevent the escape of odors and the infiltration of rain, and several layers of sand and humus that allow the growth of vegetation.These lands can be converted into recreational areas or industrial zones.
Incineration: incineration is a controlled combustion process at high temperatures, which transforms the organic fraction of the waste into inert materials (ash) and gases. During the process a large amount of heat is obtained that can be used for district heating or to generate electrical energy. It is not a total elimination system, since it generates ashes, slags and gases, but it determines a significant reduction in weight (70%) and volume (80-90%) of the original waste.
Conclusions:
The concept of Reverse Logistics is increasingly present in the business world due to the importance of environmental issues in the management of products or services.
The term Reverse Logistics has as fundamental elements the management of waste, recycling, reuse, recovery, remanufacturing, elimination of waste or residues integrating the supply chain and using computerization as a tool in decision-making.
Within the Reverse Logistics concept, continuous improvement must be included to complete the cycle in waste management.
Among the most important strategies of Reverse Logistics are:
Collection and sorting strategy
Strategy to reduce or eliminate waste:
Strategy to reuse or remanufacture resources
Strategy to recycle
Strategy for its controlled destruction
Bibliographic references
1. ANFAC (Spanish Association of Automobile and Truck Manufacturers), 2002
2. REVLOG: The European Working Group on Reverse Logistics (REVLOG). En, 2003
3. RLEC: What is Reverse Logistics? Reverse Logistics Executive Council. At Rogers & Tibben-Lembke.. p.9.2003
4. SAFA: (SAFA. Reverse Logistics of Medicines. p.8), 2000
5. Carrefour: The implementation of Reverse Logistics in a Multinational Distribution. p.3)
6. GENCO: (GENCO. Reverse Logistics for Retailers. p.4), 2000
7. UPS: (UPS. The experience of the UPS Group in Reverse Logistics. p.4)
8. USF: (James R. Stock. Avoiding the Seven Deadly Sins of Reverse Logistics. University of South Florida, USF, p.7), 2001
9. PILOT: (Registration Brochure, PILOT, p.2, 2003) Why reverse logistics? Logistics and Technological Innovation Program (PILOT). In http: //www.pilot.org/what is reverse logistics.htm, 2004
10. AECOC
11. CEQ: Council of Environmental Quality, 1996.
12. Matos Rodríguez, Doctoral Thesis: “Model for design or improvement of the E + E waste recycling system in tourist areas, 1998.
13. International Organization for Standardization (ISO) Norma-UNE-EN-ISO 9000: 2000.
