More and more companies are inclined to develop a reverse logistics system

TVS Logistics – Building a Global Supply Chain

More and more companies are inclined to develop a reverse logistics system

The caselet briefly introduces the concept of reverse logistics and various occasions where reverse logistics can be used. It explains how reverse logistics is carried out at Estèe Lauder, a US-based cosmetics company and the benefits that accrued to the company. It also talks about recycling of cartridges and computer hardware components at Hewlett Packard. 

Issues:

» Need for companies to build reverse logistics


» Process of reverse logistics in different industries

Introduction

Traditionally, companies were vigorously concentrating on developing an efficient supply chain system, a process that ensured the forward movement of materials from the raw material supplier to the manufacturer who catered to the ultimate customers. However, over the past decade or so, a new trend called reverse logistics has been gathering considerable momentum.Companies have started concentrating on developing reverse logistics processes along with the forward logistics processes…

Questions for Discussion:

  1. More and more companies are inclined to develop a reverse logistics system. What are the factors that encourage manufacturers to develop a reverse logistics system? Explain how the manufacturer benefits from a reverse logistics system. 

 

  1. Reverse logistics refers to the flow of products from the customer or dealer back to the manufacturer. Compare and contrast the reverse logistics processes of Lauder and HP.

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