Reverse Logistics and Supply Management Logistics

Many academics, organisations and individuals have tried to define reverse logistics. Emmett and Crocker refer to the term “reverse logistics” as all activity associated with a product/service after the point of sale, the ultimate objective to optimise or

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Reverse Logistics and Supply Management Logistics

9.1

Reverse Logistics in Supply Chains

Many academics, organisations and individuals have tried to define reverse logistics. Emmett and Crocker refer to the term “reverse logistics” as all activity associated with a product/service after the point of sale, the ultimate objective to optimise or make more efficient aftermarket activity, thus saving money and financial cash flow as well as environmental resources. Other definitions and terms are aftermarket logistics, retrogistics or aftermarket supply chain. The reverse supply chain (in addition to upstream and downstream supply chain management; Slack et al. 1995) is also a term used in the industry. Reverse logistics must not be mixed up with forward logistics or getting the product to market commonly known as the forward supply chain. Types of activity common with reverse logistics include: logistics, warehousing, repair, refurbishment, retrofitting, recycling, E-waste, after market call centre support, reverse fulfilment, field service and many others (Emmett and Crocker 2009). Reverse logistics have evolved since the establishment of the field. A widely used definition is in accordance with Emmett and Crocker (2009), “Reverse Logistics is the scientific process of managing assets, in every department in all industries and across all disciplines”, not only supply chain solutions in the high technology industry, but all industries and every department from Legal to Human Resources. Reverse logistics is getting more and more important for companies in an environment with scarce resources (Helmold 2010). Reverse logistics is defined as the reuse or recycling of materials, products or components. It is part of the logistical process and is the activity of moving goods from their typical final destination for the purpose of capturing value or proper disposal or recycling (disposal management). Reverse logistics is part of the logistics activities but contrary to the forward logistics function (Emmett and Crocker 2009). The chart below shows how reverse logistics comes into play in the supply chain in many areas such as customer and service help desk, service depot management, refurbishment, counting and replenishment, diagnosis management, fulfilment service, environmental management, © Springer Science+Business Media Singapore 2017 M. Helmold, B. Terry, Global Sourcing and Supply Management Excellence in China, Management for Professionals, DOI 10.1007/978-981-10-1666-0_9

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Reverse Logistics and Supply Management Logistics

disposal and recycling management or remanufacturing and retrofitting activities (Emmett and Crocker 2009). Reproducing, retrofitting or refurbishing processes are also included in the definition of reverse logistics (Emmett and Crocker 2009). Green procurement is becoming popular, and so-called green concerns and advancement of green supply chain management concepts and practices make it all the more relevant in society and organisation. The reverse logistics process incorporates the management and