Reverse Supply Chain Management - IITK - Indian Institute of 逆向供应链管理- IITK -印度理工学院.pptVIP

Reverse Supply Chain Management Dr. Peeyush Mehta Vipul Mathur Definition of RSCM A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements Relevance of RSCM The amount of product returns can be very high, with some industries experiencing returns at over 50% of sales. Sales opportunities in secondary and global markets have increased revenue generation from previously discarded products. End-of-life take-back laws proliferated in foreign countries requires businesses to effectively manage the entire life-cycle of the product. Consumers have successfully pressured businesses to take responsibility for the disposal of their products that contain hazardous waste Process steps in RSCM Acquisition of products from customers Reverse logistics: Process of retrieving the product from consumer for the purposes of capturing value or proper disposal Inspection disposition Reconditioning Distribution sales Process Examples Printing industry: Repurchase of old edition, un-sold books. Computer industry: Resale due to fast moving technology Automobiles: Resale due to new models availability e.g. Maruti True Value scheme Electronic industry: Mobile phones, televisions etc. repurchased to recover electronic parts Time value of product returns Marginal Value of Time (MVT) The loss in value per unit of time spent awaiting completion of the recovery process MVT (%)= Decrease in value of product Time Example: Time sensitive consumer electronics products such as PCs can lose value at rates in excess of 1% per week, and the rate increases as the product nears the end of its life cycle Shrinking pipeline for product returns RSCM decisions Efficient RSCM: A supply chain designed to deliver product at low cost Best for Functio