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* REVERSE LOGISTICS Definitions Logistics (Forward) “Process of planning, implementing and controlling(1) the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information(2) from the point of origin to the point of consumption(3) for the purpose of conforming to customer requirements(4)” - Council of Logistics, 1988 - Reverse Logistics “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” - Rogers and Tibben-Lembke - Reverse Logistics Activities Handling of returned merchandise Damage Seasonal inventory Resell via outlet Salvage of outdated products Stock–balancing returns Recycling and reuse Material reuse Remanufacturing / refurbishing Hazardous materials disposition Source: /img/edition04_ups.jpg The Reverse Logistics Process Size of Reverse Logistics “Reverse logistics costs in the United States are estimated to be approximately 4% of total U.S. logistics costs” - ROGERS, D., Reverse Logistics Challenges, 2002 - - Roughly $47 billions in 2006 “It is estimated that reverse logistics costs account for almost 1% of the total United States gross domestic product” MOORE, R., Reverse logistics: The least used differentiator, 2006. - Roughly $132 billions in 2006 “The Center for Logistics Management at the University of Nevada conservatively estimates that 6% of all goods may be returned, but concedes that the true number may be closer to 8%” MOORE, R., Reverse logistics: The least used differentiator, 2006. Return Percentages Source: Rogers and Tibben-Lembke, Going Backwards: Reverse Logistics Trends and Practices, 1998 Publishing Industry Highest rate of unsold copies (28% on average) Growth of large chain stores: More square footage requires more books To secure a promi
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