Research Scope
This project intends to define the state of the art in reverse logistics, and to determine trends and best reverse logistics practices. Part of the research charter was to determine the extent of reverse logistics activity in the
To accomplish this task, the research team interviewed over 150 managers that have responsibility for reverse logistics. Visits were made to firms to examine, firsthand, reverse logistics processes. Also, a questionnaire was developed and mailed to 1,200 reverse logistics managers. There were 147 undeliverable questionnaires. From among the 1,053 that reached their destinations, 311 usable questionnaires were returned for a 29.53 percent response rate. A copy of the questionnaire is included in Appendix A.
What is Reverse Logistics?
Logistics is defined by The Council of Logistics Management as:
T he process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
Reverse logistics includes all of the activities that are mentioned in the definition above. The difference is that reverse logistics encompasses all of these activities as they operate in reverse. Therefore, reverse logistics is:
The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. Reverse logistics is more than reusing containers and recycling packaging materials. Redesigning packaging to use less material, or reducing the energy and pollution from transportation are important activities, but they might be better placed in the realm of “green” logistics. If no goods or materials are being sent “backward,” the activity probably is not a reverse logistics activity. Reverse logistics also includes processing returned merchandise due to damage, seasonal inventory, restock, salvage, recalls, and excess inventory. It also includes recycling programs, hazardous material programs, obsolete equipment disposition, and asset recovery.
------Going Backwards: Reverse Logistics Trends and Practices
