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What is reverse logistics?

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The logistics or the supply control chain as they have now named it comes from ancient times where people were in need of some products and these were not available and often took time to be supplied or were non-existent for long periods.

That is why the distribution of goods through transport and few warehouses, when it began, was not so efficient in those times, but little by little it was modified and finding strategies that made the product always be at the consumer's command.

In fact, until today, with the change in technologies and the entire industrial revolution, there are still problems with the supply of certain items in many parts of the world.

Logistics is still a new topic and with many changes that are being improved and innovated day by day for greater efficiency and with this new concepts arise such as reverse logistics, which will be detailed in this article.

At present people are being more aware, and concerned about generating less pollution and less garbage to reduce the environmental impact, that is why large environmental campaigns have joined this, including companies, government and associations for conservation and care. enviroment.

It is where the concept of reverse logistics arises, where companies are not only concerned that the product reaches the end customer, but that it has the least environmental impact and they opt for some of their raw materials or packaging to be returned, to After applying any of the 6 "Rs" in a few words, the company is interested in the life cycle of the product and that costs are saved through reverse logistics.

What is logistics?

Logistics has been changing over time and for this reason, as seen in Figure 1, other concepts began to be part of this until today, which is named as Supply Chain Management.

Evolution of supply chain management. (Ballou, 2004)

The definition of logistics says that “it is to procure, maintain and transport materials, personnel and facilities, while the Logistics Board of Directors says that it is the part of the supply chain process that plans, carries out and controls efficient flow and storage and cash of goods and services, as well as the related information, from the point of origin to the point of consumption, in order to satisfy customer requirements ”. (Ballou, 2004)

Figure 2 shows a triangle where logistics planning makes a relationship with the tasks that must be performed to achieve the objectives in this case, customer satisfaction and that strategies in inventory and transport are involved for this.

The planning triangle in relation to the main logistics / supply chain management activities (Ballou, 2004)

Logistics in companies has a very important function since it is the intermediary between the company-client, and is dedicated to the fact that the product is delivered to the client in a timely manner, logistics has to do with all areas of the company, especially in Marketing, Sales, Research and Development, Forecasting, Production, Purchasing, Information Systems, Finance and Customer Service.

Another concept that must be taken into account and that has revolutionized common logistics is the administration of the supply chain, which is the systematic and strategic coordination of all the functions that comprise the organization, with the purpose of improving performance. Of the same.

Logistics itself is understood by bringing finished products or services to the place, at the right time and in required conditions, it refers to functional activities that together such as transport and inventories among others are linked so that the raw material is converted into a product and This adds value to the consumer.

The importance of logistics is due to the need to meet customer expectations by making the company optimize the marketing and transportation phase at a lower cost. The activities derived from the implementation of good logistics are:

  • Increase production lines Efficient production, reach high levels in manufacturing Maintain low inventory levels Develop new information technologies Have a competitive advantage over your adversaries.

But for this to be possible, there are components within the logistics system that will help determine the end of the delivery of the good:

  • Customer ServiceDemand ForecastDistribution CommunicationsInventory ControlMaterial ManagementOrder ProcessingParts and Service SupportFactory and Warehouse Location SelectionPurchase SchedulingPackaging and PackagingReturn ManagementWaste and Scrap DisposalTraffic and TransportationStock Handling and ManagementInformation and Physical StorageFlowering

The main objective of logistics is to serve the customer since they always expect a quick and personalized response, logistics not only occurs in the production of a good, but also in providing a service, since around the provision of A service has to take into account many personal factors, times of completion of the service, place where it will be provided, etc., and also in other political, military, environmental, etc. spheres, they have chosen to use this system.

There are several types of logistics, such as global logistics, business logistics, service industry logistics, quality, collaboration logistics and reverse logistics that were previously known for the treatment of customer returns to the company when there was defects or poor condition in them or other issues, but at present the concept of reverse logistics refers to the treatment of its raw material and packaging and is often confused with the management of control of returns, that is why below the concept that encompasses reverse logistics will be seen in more detail.

What is reverse logistics?

Reverse logistics also called ecological or green consists of the reuse of materials that have already been delivered to the customer before but that may have gone out of style, returns due to product quality problems in other cases, in the same way they occur with the packaging or assembly in which they were sent to the customer and these still have value that can be reused in the manufacture of new products, if they do not meet the requirements that are needed to resell them, they can reuse the materials and remake them or modify them so that they work, in other cases sell it to someone who needs the same raw material and can transform it,The purpose of reverse logistics is to recover raw materials or items that can be used again to reduce costs and promote a cycle of reuse where the client is included within the reverse logistics network.

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 primary value or dispose of properly her.

Process of planning and control of the flow of raw materials, inventories in process and finished goods from the point of use, manufacture, or distribution to a point of recovery or adequate disposal.

With the use of this strategy, you can influence the purchase of consumers since when seeing a socially responsible company with the care of the environment and taking advantage of what they call garbage or waste, the company absorbs it and for a This side generates lower costs and projects a good image to the market, thereby gaining customer loyalty.

Management of Reverse Logistics in the Organization

Reverse logistics is an alternative for the recovery of raw material but if within your logistics network it prevents the collection of this, you can contract through outsourcing or subcontracting to carry out the work, in the same way, subcontract warehouses.

The services that logistics offers can be:

Catering:

  • Collection Center where they are consolidated Delivery of product "just in time" Handling of packaging Returns to suppliers Management of customs and ports

Warehouse management:

  • Reception of materials Storage Management of stocks and inventories Preparation of orders Cyclical inventory controls Management of waste recovery Repackaging

Transportation and distribution

  • Delivery managementControl of freight clearance areasTransportation between plantsCustoms managementShipment planningInternational documents

The tasks performed by reverse logistics according to Tibben-Lembke and Rogers (1998), are:

  • Removal or collection of waste and materials Classification of waste and materials Reconditioning of products Return to manufacturing origins Destruction of material Administrative processes Recovery, recycling of containers and packaging and hazardous waste

The figure shows the flow of logistics and how the inverse can be attached so that the process continues

Reverse logistics flow (according to the Distance University of Madrid)

. The 6 "r's" of reverse logistics

The 6 r's of reverse logistics are set out below.

  1. Recycling of raw materials and compounds Recovery of elements that other companies use Renewal and sell them as second hand Reprocessing Resale Reuse to increase the product life cycle

The figure shows where any of the 6 r's can be used in the logistics and reverse logistics chain.

Reverse Logistics Flow

Benefits of reverse logistics

In the service or market

  • Service improves customer satisfaction Increases spare parts availability Feedback on product recall Environmental image Socially responsible image Improves product quality

On costs

  • Recovery of the value of raw materials, both materials and components Recover value of labor Reduces returns Reduces obsolescence

Environmental

  • Reduce your impact on the environment Comply with environmental legislation Waste recovery Generate less trash by collecting unusable material

conclusion

Reverse logistics is a strategy within the supply control chain to regain the value of your product and make it more profitable.

Help for managing the raw materials process and the product life cycle.

Customer loyalty is linked to consumer behavior and the ways in which the product is being delivered to them.

It is focused on sustainable development and environmental challenges to reduce the large generation of garbage and waste.

Help with the decrease in costs.

Return for the reuse of containers, packaging, packaging, and handling units.

Reasons for Returning Products

An example is the Hewlett Hp company that distributes ink cartridges for printers, when the customer finishes with the ink they can return the container to the distributor, since it has some recycling centers, and HP collects them, reviews them, classifies them if they can be used again or are to be remanufactured.

Thesis proposal:

The implementation of strategies in the company "Pinturas Contimex" that encourages the recovery of plastic cans to reduce environmental impact

objective

Establish a reverse logistics strategy that helps minimize costs

Reduce the environmental impact of the company

Improve the image that customers have

Build customer loyalty with the new image of a socially responsible company

Bibliographic references

  • Balli Morales, B. (September 26, 2017). Reverse or Reverse Logistics, Contribution to the Control of Returns and Waste in the Management of the Supply Chain. Retrieved on September 26, 2017, from Legiscomex: https://www.legiscomex.com/BancoMedios/Archivos/la%20logistica%20reversa%2 0o% 20inversa% 20basilio% 20balli.pdfBallou, R. (2004). Logistics, Supply chain management. Mexico: Pearson Education. Ditta Cadena, J. (2014, March 2014). www.Prezi.com. Retrieved September 26, 26, from www.Prezi.com: https://prezi.com/rnruy7j4fuwo/logisticainversa-de-hewlett-packard-hp/Haller, EP (December 01, 2010). Reverse Logistics: the environment and closed loop supply chains. Reverse Logistics: the environment and closed loop supply chains. Buenos Aires, Buenos Aires,Argentina: School of Graduate Studies, Mora García, LA (2010). Comprehensive Logistics Management. Bogotá: Ecoe Editions.
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What is reverse logistics?